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Introduction to Computerised Accounting

The document provides an introduction to computerized accounting, detailing its meaning, features, and advantages over traditional manual accounting systems. It highlights the processes involved in computerized accounting and discusses the differences between manual and computerized methods, along with the benefits and drawbacks of using such systems. Additionally, it emphasizes the importance of investing in accounting software for improved data security, accuracy, and decision-making.

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Meredith Chelsea
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22 views

Introduction to Computerised Accounting

The document provides an introduction to computerized accounting, detailing its meaning, features, and advantages over traditional manual accounting systems. It highlights the processes involved in computerized accounting and discusses the differences between manual and computerized methods, along with the benefits and drawbacks of using such systems. Additionally, it emphasizes the importance of investing in accounting software for improved data security, accuracy, and decision-making.

Uploaded by

Meredith Chelsea
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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INTRODUCTION TO

COMPUTERISED
ACCOUNTING

MS. R. MEREDITH CHELSEA


ASSISTANT PROFESSOR
PG & RESEARCH DEPARTMENT OF INTERNATIONAL
BUSINESS
SRCAS
CONTENT
• MEANING OF COMPUTERISED ACCOUNTING
• TRADITIONAL/MANUAL SYSTEM OF ACCOUNTING
• PROCESS OF COMPUTERISED ACCOUNTING
• FEATUERES OF COMPUTERISED ACCOUNTING
• DIFFERENCE BETWEEN MANUAL ACCOUNTING SYSTEM AND
COMPUTERISED ACCOUNTING
• ADVANTAGES AND DISADVANTAGES OF COMPUTERISED
ACCOUNTING
• PROCESS/STEPS IN COMPUTERISED FINANCIAL ACCOUNTING
• ADVANTAGES OF THE COMPUTERISED FINANCIAL ACCOUNTING
SYSTEM
• VARIOUS COMPONENTS OF A COMPUTERISED FINANCIAL
ACCOUNTING SYSTEM
MEANING OF COMPUTERISED ACCOUNTING
• As its name suggests, "computerized accounting" is accounting done with the
aid of a computer. It tends to involve dedicated accounting software and digital
spreadsheets to keep track of a business or client's financial transactions.
• Computerized accounting is a beneficial use of current technological advances.
Not only has it revolutionized the traditional paper methods of accounting, but
it has also created new types of accounting applications for business.
Companies now create entire accounting information systems that integrate all
business operations, including external suppliers and vendors in the value
chain.
• Computerized accounting systems (or software) have replaced manual-based
accounting in virtually all businesses and organizations, providing accountants,
managers, employees and stakeholders access to vital accounting information
at the touch of a button. Computerized accounting systems automate the
accounting process--improving efficiency and cutting down costs.
• Computerized accounting has many advantages over traditional manual
accounting. Computerized accounting tends to be more accurate, is faster to
use, and is less subject to error than its manual counterpart.
TRADITIONAL/MANUAL SYSTEM OF
ACCOUNTING

Input Processing Output

Data & Manual


Information
instructions processing
PROCESS OF COMPUTERISED
ACCOUNTING

Input
Data &
Processing
instructions Output
-Cheques/ Electronic
Receipts Processing - Profit & Loss A/c
-Debit Notes Through - Balance Sheet
-Credit Notes Computers
-Invoices
FEATUERES OF COMPUTERISED
ACCOUNTING

1. Fast, Powerful, Simple and Integrated


2. Complete Visibility Enhanced User Experience
3. Accuracy
4. Speed
5. Scalability
6. Power
7. Improved Business Performance
8. Quick Decision Making
9. Complete Reliability
DIFFERENCE BETWEEN MANUAL ACCOUNTING SYSTEM
AND COMPUTERISED ACCOUNTING

• Recording of data

• Data entering

• Classification and processing of data

• Data Storage

• Reporting

• Accuracy

• Lesser paper work

• Codification of data

• Data sharing

• Adjusting entries
ADVANTAGES OF
COMPUTERISED ACCOUNTING

• Codification is possible
• Easy control
• Universal application
• Easy to process voluminous data
DISADVANTAGES OF
COMPUTERISED ACCOUNTING

• Needs heavy investment


• Problem of security
• Loss of data
• An artificial device
• Possibility of manipulations
• Not suitable for small firms
• Requries training on part of accountants
• Need of a Computerized Accounting Software

• Investing in a Computerized Accounting Software is important for


several reasons. Some of the benefits are listed below:-

• 1. Data Security

• Computerized accounting systems allow users to store their data in one


central location. Thus, even if you lose a paper having valuable
information, there is no risk of the information being stolen. Data is
stored in a centralized location.

• 2. Simplicity

• Accounting software automates so much that very little is recorded


manually. This helps us improve our reporting of transactions and
statements.

• 3. Accuracy and Speed

• Automating the accounting process with an accounting software


ensures operations are completed quickly and accurately.
.
• 4. Scalability
• Computerized accounting systems are flexible enough to adapt to
changing business volumes.
• 5. Rapid Decision – Making
• Computerized accounting systems generate real – time information.
They enable managers to make immediate decisions or hurry
solutions to specific problems.
• 6. Advanced Features
• Some accounting programs are designed for sole proprietorships and
small businesses. Others are tailored for large businesses. If your
business operates at scale, consider a computerized accounting
system. It offers features such as inventory management and multi-
user access.
• 7. Reliability
• Computerized accounting systems consistently produce standardized
and accurate accounting information

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