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Importance of Understanding Accounting systems


The most popular accounting systems out their today are namely Pastel and Quickbooks to name a few. You may ask the question, “why is accounting systems so important?”

We live in an age where everything is done on computers; this is due to the fact that large numbers of information can be kept, both securely and accurately. Accounting is the backbone of any company large and small alike, accounting contains valuable information of the company’s current economic status and this information needs to be handled with care.

Please don’t wrong, the is absolutely nothing wrong with the old fashioned way of doing accounting, but if one looks at the job requirements needed, even at a administrative level, being knowledgeable in an accounting system is a huge advantage.

In my opinion anyone who has the mental capacity to retain information of the basic principles of accounting can operate an accounting system. You may ask “why is that?” the answer is quite simple; one needs to know the “why” in accounting as well as the “how”.

Allow me to explain, for example, I as the employee need to create an invoice for client X, I need to understand that in accounting I would need to decrease the inventory item/s which the client would like to acquire, I then need to check if this a cash or a credit client, as we know cash would directly increase the bank account and a credit transaction would need to increase accounts receivable and the bank account.

That is just a basic explanation that one would need to know WHY you should increase and decrease certain accounts. The thing I love about accounting systems is that it does all the work for you, all you have to do is capture the necessary required data and it is of utmost importance that one does it correctly.

We at Sedi Software and Training Specialists have an exciting Pastel course, which we have currently made available online! Check out our website on for more exciting courses we offer online, contact our offices on 0219483300 or email This email address is being protected from spambots. You need JavaScript enabled to view it. .

Blog Post done by Tammy Daniels

SEDI Software and Training Specialist (Pty)Ltd.