GROUP 1

Cruz, Marvi Ned Xigrid

Garcia, Claira Lauryn
Pagkaliwangan, Prescious
Palad, Kathleen Ginmer
 BUSINESS
REALIZATION
•Accounting has been
done manually till the
1980s, when the advent of
fast computers and easy-to-
use, accurate and reliable
software started.
COMPUTERIZED ACCOUNTING
•involves making use of
computers and accounting
software to record, store and
analyze financial data. A
computerized accounting
system brings with it many
advantages that are unavailable
to analog accounting systems.
Advantages of Using
Computer Accounting
AUTOMATION
•Sinceall the calculations are
handled by the software,
computerized accounting eliminates
many of the mundane and time-
consuming processes associated
with manual accounting.
 ACCURACY
•Thisaccounting system is designed
to be accurate to the minutest detail.
Once the data is entered into the
system, all the calculations, including
additions and subtractions, are done
automatically by software.
DATA ACCESS
•Using accounting software it becomes
much easier for different individuals to
access accounting data outside of the
office, securely. This is particularly
true if an online accounting solution is
being used.
Reliability
•Because the calculations are so
accurate, the financial statements
prepared by computers are highly
reliable.
Scalable
•When your company grows, the amount of
accounting necessary not only increases
but becomes more complex. With
computerized accounting, everything is
kept straightforward because sifting
through data using software is easier than
sifting through a bunch of papers.
 Speed
•Using accounting software, the entire process
of preparing accounts becomes faster.
Furthermore, statements and reports can be
generated instantly at the click of a button.
Managers do not have to wait for hours, even
days, to lay their hands on an important
report.
Security
•The latest data can be saved and stored
in offsite locations so it is safe from
natural and man-made disasters like
earthquakes, fires, floods, arson and
terrorist attacks. In case of a disasters,
the system can be quickly restored on
other computers.
Cost effective

•Sinceusing computerized accounting is

more efficient than paper-based
accounting, than naturally, work will be
done faster and time will be saved.
Visuals
•Viewing your accounts using a
computer allows you to take advantage
of the option to view your data in
different formats. You can view data in
tables and using different types of
charts.
NEED FOR SYSTEM
DEVELOPMENT
(COMPUTER
ACCOUNTING)
 Accounting Information system
(AIS)
•is
a system of collecting, storing and
processing financial and accounting data
that are used by decision makers.

•An accounting information system is

generally a computer-based method for
tracking accounting activity in conjunction
with information technology resources.
Developing Accounting System

•An ideal accounting system does

not come into force automatically.
It is to be very much carefully
planned, designed, arranged,
managed and modified.
•In developing an ideal accounting system the
following four steps are necessary;

•Analysis.
•Design.
•Implementation.
•Follow-up.
Analysis
•At first, it is to be ascertained what
information is necessary for internal
and external users. An information
analyst is to identify sources of
necessary information for collecting
data and prepare reports and preserve
them properly.
•Strength and weakness of an existing
information system are to be identified
for its analysis.
Design
•For formulating a new accounting system
designing of forms and documents,
sorting of the method and working
process, preparing a statement of work,
collecting techniques of control, preparing
reports and selecting equipment are
necessary.
•Slight changes are required for
redesigning existing accounting
information system
Implementation
•For the implementation of a new or
modified accounting information
system, necessary documentary
evidence of information, the process of
methods and installation of necessary
equipment etc. are to be activated.
•Employees concerned are to be given
training and they are to be monitored
closely.
Follow-up

•After the implementation of the

accounting information system and
making it workable, its weakness and
breakdown are to be monitored very
closely and its effectiveness and design
are to be compared with organizational
objectives.
•If needed changes are to be brought in its
implementation process of design. The
above-mentioned steps represent the life
cycle of an accounting information
system. This suggests that some
accounting information systems are
always unchangeable.
BUSINESS NEEDS
•Business needs are gaps between the
current state of a business and its goals.
Needs are the basic drivers of change in an
organization that are
identified as requirements and implemented
by hiring people, implementing projects,
transforming operations and
purchasing goods. The following are
common types of business need.
•Talent
People with the ability to achieve
the objectives of a firm. For example, a design
director who can develop products that sell
well.
•Infrastructure
Foundational services such
as networks and computing.
•Facilities
Facilities such as offices, factories,
warehouses, data centers, retail locations
and product showrooms.
•Structures
Organizational structures such as
departments and teams each with their
own objectives and capabilities.
•Organizational Culture
The norms, habits and values of a firm.
For example, a business may need to
transform its culture to be more creative
and accepting of change.
•Intellectual Property
Valuable knowledge that is owned by a
firm including trade secrets and patents.
•Products & Services
The value that a firm offers to customers.
•Customer Experience
The experience that a firm offers to
customers. For example, a business that
needs to improve the friendliness and
diligence of its call center services in order to
address poor customer satisfaction
•Machines
Physical machines that perform
work.
•Tools
Physical tools that people use to
perform work such as a mobile device
or hammer.
•Systems
Software that automates work.
•Applications
Software that people use as a tool to
improve productivity.
•Data
Information that is designed to be used
by machine. For example, a billing
database that is used to generate
customer invoices each month.
•Accounting software makes it easier for
you to track your business's financial health
and monitor the money moving in and out of
your accounts. It can create invoices, track
expenses and generate a variety of reports
that help you analyze your business's
performance from various angles. Many
applications can also help you track your
bills and manage your inventory or projects.
•Accounting without computers presents a
high risk for human error. Accounting
software allows businesses to simply input
their financial data and instantly see gains
and losses. All necessary tax reports are
available the moment the data is entered.
Using computers for invoicing, managing
expenses and calculating payroll is vital for
ensuring financial data is as accurate as
possible.
BUSINESS VALUE
ASSESSMENT ON
COMPUTER
ACCOUNTING
Business Value Assessment are
designed to assess the value of a
specific workforce service,
delivered at sufficient scale to
affect a company's operations or
financial bottom-line, and one
business at a time.
 Business Value Assessment:
Prior researches have shown that
accounting information system
adoption does increased firm’s
performance, profitability and
operations efficiency. It also says that
computer accounting is of great
importance and has great value to
businesses, organizations and to the
economy.
 Business Value Assessment:

Speed and accuracy of

operation
Ability to see the real-
time state of the
company’s financial
position
Availability of
information
Reduce frustration
After understanding and
assessing the business needs, we
can say that establishing
Computer Accounting would be
of great help and does improve
every business operations in
making it accurate, fast and easy.