Use of Computers in Accounting
Introduction
Computers play an important part in the recording of finical
information.
There care many accounting packages available, and so many businesses
are able to use computerised accounting system.
One of the most important factors of computerised accounting system is
that it provides the same functions as a manual accounting system.
Main body
Most business use computer systems instead rather then manual systems
to record finical information, because it is a lot faster file can be
shared more easily and changes can be made easily.
Tasks that can be performed using computers are spreadsheets, which
are used for a variety of functions:
· Producing invoices - working out the costs of products sold,
calculating and adding VAT and producing sales total.
· Working out budgets for future expenditure.
· Working out sales figures for different products or areas.
Most accounting packages will provide the basis for daybooks, ledger
accounts, (double entry), trial balance and final accounts.
· Daybooks -are used for listing sales, purchases and returned goods.
Computer programs often use the batch system, which is a listing of
the items with an overall total to check against computer input. It is
common to find batches for sales, purches, returns, cheques received,
cheques issued.
· Ledgers accounts (Nominal ledger or General ledger) - all the other
accounts- expenses, income, assets (items owned) and liabilities
(items owed) - this is also referred as the 'main' ledger
· Trial Balance - If the business has been operating a computer
accounting program such as Sage...
... middle of paper ...
...reports on expenses accounts.
· VAT return.
· To conclude I will I will tell my employer what a computer in
business can do. It producing invoices - working out the costs of
products sold, calculating and adding VAT and producing sales total.
Working out budgets for future expenditure. Working out sales figures
for different products or areas.
· Advantages of a computer are save time, save money. Tend to be more
accurate because they rely on single entry input (one amount per
transaction) rather than double entry bookkeeping. Provide the mangers
of the organisation with a clear and up-to-date picture of what is
happening.
· Disadvantages of a computer are: On a computer the date can be lost
therefore a backup copy is needed. Also the computer might not work
therefore there will be no access to the data.
To counter this problem, computer assisted audit techniques have been developed. These systems are able to provide a more in depth analysis of the utilized billing systems. Computer assisted audit techniques also enable highly efficient assessment of transactions. By utilizing this system, an auditor could gain a clearer picture of the revenue reporting mechanisms that are being utilized by the business office. Once the information is derived, however, its interpretation, while simpler, will still require an individual that is knowledgeable in regard to the revenue cycle
Accounting/Finance application systems like Peachtree, Net Suite and QuickBooks let you manage your business with a little or no experience. All three application systems allow the users to manage the companies' capital including bookkeeping, inventory, non-inventory & service items, sales orders, purchase orders, and reports. It allows the companies to keep tracking of the financial assets and at the same time have the information the accountant needs. Using the accounting/finance application system, makes it easier to enter and process the data rather than manually enter and process the data.
Stair, R.M., Reynolds, G.W., Gelinas, J.U. Jr., Sutton, S.G., Hunton, J.E., Albright, S.C., Winston, W.L. & Zappe, C. (2007) Accounting Information Systems and Financial Modelling, Thomson, South Melbourne, Victoria, Australia.
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Brecht, H. D., Martin, M. P. (1996) Accounting Information Systems: The Challenge of Extending Their Scope to Business and Information Strategy Accounting Horizons 10(4), 16-22
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