Accounting Software on Every Desktop: Implications for Business Education

1. Accounting Software on Every Desktop: Implications for Business Education Carol Yacht, Author Jerome, AZ www.mhhe.com/yacht

2. Today’s Objective Use the Accounting Software that is on Every Desktop

3. Why integrate technology? • Because there is a gap between how we teach and what is done in the business world. • Because we need to teach students how technology has reshaped business.* • There is a 75% retention rate with hands-on practice. *W. Steve Albrecht, Brigham Young University; Robert J. Sack, University of Virginia; study published by American Accounting Association, 2000. http://aaahq.org/pubs/AESv16/toc.htm Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

4. Retention Rates Learning Pyramid* *National Training Labs, Institute for Applied Behavioral Science; Bethel, Maine Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

5. What are the Critical Technology Skills? • Windows • Internet • Email • Word processing • Spreadsheet • Database • Presentation • Accounting software Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

6. 2005’sTop Technology Issues* • Paperless Office • Radio Frequency Identification (RFID) www.microsoft.com/BusinessSolutions/scm_chip.aspx • Integration of Web-based activities • Data mining and business intelligence • Voice over Internet Protocol (VOIP) • Viruses and Internet Security • Document management techniques *Accounting Technology magazine www.webcpa.com/article.cfm?articleid=9497&pg=acctech Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

7. What software does business use? • Microsoft Office Suite: • Word • Excel • Outlook, PowerPoint, Publisher, Access • Internet Explorer • Small Business Accounting www.microsoft.com/office/editions/prodinfo/smallbusiness/accounting/default.mspx • Accounting: Quicken, Peachtree, QuickBooks, Microsoft Business Solutions-Great Plains, ACCPAC, Simply Accounting…. Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

8. Software Integration Publisher PowerPoint Word Processing • Bus. Educ. courses Word IE Digital tools Business Technology Skills Excel Access Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

9. Software Integration Accounting I Excel • Accounting courses AA; CYGL Peachtree QuickBooks Accounting II Access Great Plains MAS 90 & 200 Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

10. Accounting Software Market* • Entry-level software: Businesses with sales of up to $5 million; up to 20 employees; 5 million companies. • Small to medium businesssoftware: Business with sales of up to $100 million; up to 100 employees; 516,000 companies. • Small to medium enterprise software: Organizations with revenues up to $500 million; up to 500 employees; 84,000 companies. • Enterprise resource planningsoftware: Organizations with revenues exceeding $500 million; up to 500 employees; about 17,000 companies. *A Strategy for Finding the Right Accounting Software, Journal of Accountancy, September 2003; www.aicpa.org/pubs/jofa/sep2003/johnston.htm

11. Form-based-- source-document screens for data entry; e.g., purchase orders; sales orders; checks. • Cash transactions and bank reconciliation. • Customer and Vendor transactions . • Numerous reports including financial statements. • Payroll accounting option (fee-based service). Carol Yacht, Author Accounting Softwareon Every Desktop February 19, 2005

12. General Ledger Software Design Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

13. General Ledger System Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

14. Market Share: QuickBooks/Peachtree/Other* *Accounting Technology, December 2002 Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

15. Peachtree/QuickBooks Pros & Cons • Peachtree reinforces traditional accounting. • QuickBooks does not follow the debit/credit paradigm. • Peachtree is double-entry accounting. • QuickBooks is single-entry. • Peachtree organizes records by monthly accounting periods. • QuickBooks has one set of data for the entire year. • Peachtree is free to schools. • QuickBooks is purchased by schools. Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

16. Peachtree & QuickBooks: CD version

17. Application Service Providers: Web delivered

18. Using Spreadsheets in Accounting In a spreadsheet accounting course, students apply accounting procedures to Excel. Topics include: • Excel tutorial - learn basic spreadsheet elements, such as how to move around, enter data, save, format, use page setup and print. • Accounting projects - use Excel templates to manipulate accounting data; analyze spreadsheets. Reinforce financial and managerial accounting concepts. • Model building - build spreadsheets from scratch. For example, payroll, depreciation, amortization schedules. • Case problems - advanced model-building projects. Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

19. Excel balance sheet Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

20. Excel income statement Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

21. Questions?