I need your opinion on this accounting question...What do you think?

Question

With the onset of accounting software (Quickbooks, Peachtree, ect.) have computers eliminated the need to analyze transactions? Brief explanation as to why.

Answer 1

There was a quote on my liability insurance newsletter some time ago "Lack of accounting knowledge combined with a lack of software knowledge can produce disasterous results."

Software only improves the recordkeeping...but you still need to know the accounting end of things to make sure items are recorded to the right places and to know what the numbers really mean.  

Answer 2

Computer accounting software doesn't eliminate the need to analyze transactions. The programs merely automate the traditional paper journal and ledger system. If transactions are not analyzed properly before being entered into the system, the resulting reports generated will be inaccurate in either system, traditional or computerized.

Answer 3

Accounting software is a misnomer.  These products should really be called bookkeeping software.  The operate at the level of a junior bookkeeper, except they are more faithful and accurate in recording what they are told to record and never record amounts anywhere other than where they are told to record them.

Accountants perform analysis.  Bookkeepers record data where the accountants tell them to.  "Accounting software" doesn't perform analysis.  Accounting software doesn't analyze your business and determine the best method of depreciation or the most favorable method of inventory valuation or ....

Hope this helps

Jerry-the-bookkeeper