Part 1: Proficiency in Computerized Accounting (PCA)
You are the owner of an accounting practice that does monthly record keeping for several businesses. You have decided to use PCA as your computerized accounting system. Use the South University Online Library or the Internet to research PCA. Based on your research and understanding, answer the following questions:
• What are the steps to opening a new company in PCA?
• What information needs to be acquired prior to opening a new company in PCA?
• Which posting method should you choose: Real Time or Batch? What is the difference between the two? Which is preferable?
• Which accounting method should you choose: Accrual or Cash? What is the difference between the two? Which is preferable?
Part 2: Account Reconciliation
Step 4 in a PCA's computerized accounting cycle is Account Reconciliation. Based on your research and understanding of the PCA accounting system, answer the following questions:
• Why is account reconciliation important? Which accounts should be reconciled and how often should they be reconciled?
• Bank reconciliations require several steps of comparison between the bank records and the company records. What are the different steps of bank reconciliation in a manual environment and computerized environment?
• What kinds of discrepancies will be found between the bank records and the book records?
• How does timing affect the bank reconciliation and do these discrepancies ever need to be corrected?