Computerized accounting software automatically performs many processes that accountants must complete by hand in manual accounting.

Software often includes "hidden" or preset processes.

For example, if you identify the checking account as your default, you may not see the money coming out of the checking account when you pay bills, but the software still performs the function.

Because the software performs most calculations, trial balances usually balance in computerized systems.

Many programs place odd items or incorrect transactions in a preset default account.

Accountants should verify the items in these default accounts before they close the period or generate financial reports; the default accounts help to find and fix errors better than a trial balance.

When accountants close a period in a program, they may not be able to make any changes to that period. This is known as a "soft close." A "hard close" means the balances of revenues and expenses are transferred to the retained earnings.

These accounts start fresh again for the next period and are not accumulated across different periods. Accountants may generate reports for a period of a year or longer, depending upon the software and parameters set.

Using computerized software allows for flexibility not available in the manual setup. Because of this flexibility, closing the books is not as important as in the manual system.

When accountants close the books in a computer program, they can still access and make changes to prior periods.