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Account 1

ASSIGNMENT

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27 views

Account 1

ASSIGNMENT

Uploaded by

vany tag
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Computer is an important part of an accounting system.

Computerized accounting systems are


important to business in various ways. Computers helps businesses by making their staff efficient ,
productive and also save their valuable time. It helps to maintain business and all financial information
for the business is well-organized.

1) Time and cost savings : Using a computerized accounting system saves companies time and money.
The use of computer makes inputting accounting information simple. Business transaction are entered
into the system and the system posts transactions accordingly.

2) Organization : A computerized accounting system help business to stay organised. When information
is entered into the system. it makes finding the information easy. Employees can see any financial
information whenever it is needed.

3) Storage : Storing information is vital to a business. In Computerized System data cam be stored
quickly. after information is entered into the system the information is stored indefinitely. Companies
perform backups on the system regularly to avoid losing any information.

4) Distribution : Computerized accounting systems Allow companies to distribute Financial


information easily. Financial statements are printed directly from the system and are distributed
internally and externally to those needing the information.

5) Management reports : Data within the computerized accounting system is accurate and up-to-date.
Management can request online report in real-time and that makes management decisions more
reliable and timely.

6) Regulatory Compliance : Reports are required on a regular basis from various government Agencies.
a computer system can organize their data and reports to comply with this statutory requirements
savings time.

Objects of Introduction of Computers in Accounting:

Labor Saving: Labor saving is the main aim of introduction of computers in accounting. It refers to annual
savings in labor cost or increase in the volume of work handled by the existing staff.

Time Saving: Savings in time is another object of computerization. Computers should be used whenever
it is important to save time. It is important that jobs should be completed in a specified time such as the
preparation of pay rolls and statement of accounts. Time so saved by using computers may be used for
other jobs.

Accuracy: Accuracy in accounting statements and books of accounts is the most important in business.
This can be done without any errors or mistakes with the help of computers. It also helps to locate the
errors and frauds very easily.
Minimization of Frauds:Computer is mainly installed to minimize the chances of frauds committed by
the employees, especially in maintaining the books of accounts and handling cash.

Effect on Personnel: Computer relieves the manual drudgery, reduces the hardness of work and fatigue,
and to that extent improves the morale of the employees.

Meaning of Computer Accounting: Accounting is the language of the business. Different parties such as
shareholders, stakeholders, tax authorities, stock exchanges, etc. are interested in the accounting
information for their varied needs.

ADVERTISEMENTS: A full disclosure is insisted by Securities Exchange Board of India [SEBI] and
therefore, full information and its neat, simple, and quick presentation has become very essential.
Manually maintained accounting system may not be able to provide all these facilities. In recent times,
computers are being used to maintain the accounting records and for the preparation, analysis, and
interpretation of accounting statements. Hence, the system operated through computers is called as
computerized accounting or simply, accounting in computerized environment.

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