How software undermines double-entry skills
Automated accounting software has dumbed down the profession to such an extent that many accountants no longer understand the basic principles of double-entry bookkeeping, AccountingWEB members have claimed.
It began last month in the Sage 50 Accounts discussion group with a tricky bit of reconstruction work to reallocate a couple of invoices in a bank reconciliation completed during the previous financial year, but escalated into a diatribe against falling professional standards and the havoc wrought by over-reliance on computer software.
Some members of the group looked for ways to delete and re-enter the transactions to reallocate payments against particular invoices, and another member suggested a way to do this by going into the Sage Maintenance module and editing the transactions there.
But witch-queen, a bookkeeper and Sage trainer advised that while “VAT Cash Accounting in Sage can be a pain, but if you just stop and think for a second, there is always a way to manually correct things. Bank Payments can be reversed with a Bank Receipt (and vice versa) and the corrected transaction entered,” she wrote.
Invoices on both sides can be reversed with a credit note (and vice versa) via the suspense account and the corrected transaction entered.
The episode prompted a rant from AccountingWEB member Lloyd Sherwood. “What really amazes me [is] the lack of understanding of double entry principle which needs to be applied prior to processing of financial data onto a computerised accounting software,” he wrote.