levo

Technology for Finance and Disaster Recovery

Databases and accounting software

  • 3 things to know
  • A2 1

Overview

Fields, records, tables, primary keys and relational databases, queries, accounting software and bank feeds, Making Tax Digital, fintech and automatic invoice reading.

What you need to know

Answer each one before you reveal it.

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Evaluation

Evaluate cloud accounting software for a Belfast sole trader client.

Evaluation

Evaluate a database and a spreadsheet for an accountancy practice tracking the deadlines of 2,000 clients.

Key term

What is a database?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is a database?

    Model answer

    A database is an organised store of data held in tables. Data can be searched, sorted and combined quickly.

  2. 2

    Define the terms field, record and table in a database.

    Model answer

    A field holds one item of data, such as an invoice date. A record is a set of fields about one item, and a table holds all the records of one type.

  3. 3

    What is a primary key?

    Model answer

    A primary key is a field that uniquely identifies each record, such as a client number. The key prevents duplicate records and links tables together.

  4. 4

    What is a relational database?

    Model answer

    A relational database stores data in separate linked tables. Client details are held once and linked to every invoice, which avoids repetition.

  5. 5

    What is a database query, and how does it support financial management?

    Model answer

    A query searches the database for records meeting set criteria. A firm could list every invoice unpaid after 60 days.

  6. 6

    How does a database differ from a spreadsheet for financial records?

    Model answer

    A database handles large volumes of related records and controls who can change them. A spreadsheet suits calculation and modelling but becomes unreliable with many records.

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