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Computerized Accounting System

Computerized accounting systems are software programs stored on a company's computer or server that allow businesses to effectively manage their financial reporting and transactions. They set up income and expense accounts, manage bank accounts and bills, and prepare budgets and tax documents. Computerized accounting systems ensure accurate financial records and statements with minimal errors by automating accounting work. It is important for staff to be trained to correctly use the accounting system so the business can benefit from the software.

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262 views

Computerized Accounting System

Computerized accounting systems are software programs stored on a company's computer or server that allow businesses to effectively manage their financial reporting and transactions. They set up income and expense accounts, manage bank accounts and bills, and prepare budgets and tax documents. Computerized accounting systems ensure accurate financial records and statements with minimal errors by automating accounting work. It is important for staff to be trained to correctly use the accounting system so the business can benefit from the software.

Uploaded by

Queen Valle
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Computerized Accounting System

While some firms still do their bookkeeping by hand, most firms generally have too
many transactions to sustain a manual accounting system. The more complicated the
financial activities of your business are, the more likely it is that you'll need a
computerized accounting system to ensure effective financial reporting. Computerized
accounting systems are software programs that are stored on a company's computer,
network server, or remotely accessed via the Internet.
Computerized accounting systems allow you to set up income and expense accounts,
such as rental or sales income, salaries, advertising expenses, and material costs. They
also can be used to manage bank accounts, pay bills, and prepare budgets. Depending
upon the program, some accounting systems also allow you to prepare tax documents,
handle payroll, and manage project costing. You can generally customize the software
to meet the needs of your business. It's important to make sure that your staff are
trained and understand how to use the system correctly so that your company can
successfully use your accounting program.

Special Features of Computerized Accounting


1. It leads to quick preparation of accounts and makes the accounting statements and
records available on time.
2. It ensures control over accounting work and records.
3. Errors and mistakes would be at minimum in computerized accounting.
4. Maintenance of uniform accounting statements and records is possible.
5. Easy access and reference of accounting information is possible.
6. Flexibility in maintaining accounts is possible.
7. It involves less clerical work and is very neat and more accurate.
8. It adapts to the current and future needs of the business.
9. It generates real-time comprehensive MIS reports and ensures access to complete
and critical information instantly.

Advantages of Computerized Accounting


1. Better quality work
The accounts prepared with the use of computers are usually uniform, neat, accurate,
and more legible than manual job.
2. Lower Operating Costs
Computer is a labor and time saving devise. Hence, the volume of job handled with the
help of computers results in economy and lower operating costs.
3. Improved Efficiency
Computer brings speed and accuracy in preparing the records and accounts and thus,
increases the efficiency of employees.
4. Facilitates Better Control
From the management point of view, greater control is possible and more information
may be available with the use of computer in accounting. It ensures efficient
performance in accounting work.
5. Greater Accuracy
Computerized accounting ensures accuracy in accounting records and statements. It
prevents clerical errors and omissions.
6. Relieve Monotony
Computerized accounting reduces the monotony of doing repetitive accounting jobs,
which are tiresome and time consuming.
7. Facilitates Standardization
Computerized accounting facilitates standardization of accounting routines and
procedures. Therefore, standardization in accounting is ensured.
8. Minimizing Mathematical Errors
While doing mathematics with computers, errors are virtually eliminated unless the data
is entered improperly in the first instance.

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