Applying Peachtree Accounting Software to Ferrero and Nestle Companies
In the contemporary world driven by digital technologies, it is crucial for the companies to use the software for numerous operations, including accounting. The accounting software, such as Sage Accounting programs, like Peachtree may not only make the calculations of the company’s assets and other accounts more sufficient but also help to save a lot of time and effort. Using the accounting software, the companies can determine and distribute different types of assets, liabilities, revenues, and expenses while operating the business as well as register all the transactions faster and easier. The following report is about to demonstrate the accounting software’s main function concerning the Inventory module of Sage Peachtree Accounting.
For this report, the two companies have been chosen – Ferrero Group, most commonly known for the production of such popular product as Nutella, and the Nestle Group, also known for its various brands producing a great amount of confectionary products. Ferrero group was founded in 1946 in Italy by Pietro Ferrero when the Italian sweets manufacturer has invented a product that would compensate the lack of cocoa in Europe creating a paste consisting out of hazelnuts, sugar, water, and a very small amount of cocoa beans. Later, in 1951 the company has moved on the international market and gained a worldwide success which it is holding today. The most known company’s brand Nutella has been invented in 1946, however, received a current name only in 1964.
Nestle’s history has begun in late 19th century with the invention of the condensed milk by brothers Charles and George Page from the United States who have started supplying Europe with this product as an alternative to the natural cow’s milk. Later, in 1867 the German-born Swiss pharmacist, Henri Nestle has also given his alternative to milk, however, creating it primarily for the infants who could not be breastfed. According to Forbes 2016 Global 2000 list, Nestle is currently holding the position of the world’s biggest producer of foods and was ranked number 33 on the Forbes’ biggest global companies list (McGrath, 2016). The company is very well known in the United States for its candy production as well as the frozen foods and beverage.
The companies of such great scale as Ferrero or Nestle require the most precise and swift accounting which require certain knowledge about the accounting operations as well as the according software. According to Weygandt et al. (2010) there is not much difference between the accounting process of merchandising and service company, with the main differences being the management of adjusting and closing entries for the companies. The merchandising company has to make the additional adjustment to make the record agree with an actual inventory as at the end of each period the company uses the perpetual inventory due for control purposes as the inventory may have the recording errors, theft or waste instances. Also, the merchandising company has to close all the temporary balances occurred …