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.
Ramsis #53 Mon. 4:00-6:40 History 110 Nobiletti 12/12/13 Four freedoms 11 months before the United States of America would declare war on Japan, President Franklin D. Roosevelt delivered a speech to the American people known as the “four freedoms” on January 6, 1941.1 The main purpose of this speech was to rally support to enter World War 2, however in order to declare war the United States of America had to abandon the isolationist policies that emerged out of WWI. These four freedoms would establish human rights after the war, but more importantly they would resonate throughout the United States for decades after the war. Some of these freedoms have remained the same, and some of these freedoms have changed throughout the years. We will be looking at three periods and comparing how the freedoms varied from each of the three periods.
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.
Accounting technicians keep systematic records of business transactions. For example, they make bank deposits and reconcile records of bank transactions. These technicians also assist with accounts receivable and accounts payable records, ledgers and journals. They use computers to calculate, prepare and process invoices, accounts payable and receivable, budget documents and other routine financial records. They also have other duties, such as performing computer data entry and analysis functions, preparing, typing and mailing monthly customer statements, taking telephone orders, making up cheques and assisting with payroll calculations.
Every transaction gets entered twice in financial records. If one day you sold three gold coins ' worth of pepper, you would write that the amount of cash you had went up by three gold coins. You would also write in that the amount of pepper you had went down by three gold coins ' worth. Before double-entry, people just kept diaries and counted their money at the end of the day. This innovation allowed merchants to see every aspect of their business in neat little rows. (Kestenbaum,
In order for business owners to find success they need to know a lot of skills such as knowledge about the accounting system. Without the accounting system, the business owner would not know if he is making profit or loss. An accounting system will also include: data collection, data organization, accounting database, financial statements and reports, analysis. Assets are resources with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future economic benefit. Assets are recorded in the balance sheet and are generated to increase cash flow. They are the items on a balance sheet showing the book value of property owned. Assets can be anything physical such as cash, machinery, inventory, land and building. "Liabilitie...
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
Nowadays with the implementation of new emerging technologies, the way businesses keep this financial information has become computerised. At the moment businesses use computers with a computerised accounting system in order to perform many other new activities than what they were able to do in the past. Businesses can access financial information from different department in the organisation, access to the information through computers and find financial data very fast, being more efficient. (Beliss, 2013)
I am interested in conducting research and teaching in managerial accounting, auditing and assurance services and accounting information systems. In particular, I am interested in exploring the role of accounting information systems in decision making, internal control, and auditing. In order to gain an appreciation of these and related issues, it is essential for me to have a strong grounding accounting, accounting information systems, information technology, managerial accounting, as well as gain a general economic and management perspective.
An Accounting Information System (AIS) can be defined as software that helps accountants to collect data and process it to create information ((Bagranoff, Simkin and Norman 2010)
There are many components involved in running a successful business. One very important component is accounting. Creating and maintaining accounting systems is important for many reasons. Accounting systems help companies know how their business is doing financially, in particularly if the company is growing or failing. Organized financial records are also easier to access. Maintaining accounting systems also helps the company know who owes what and what amount they are due to receive. Accounting systems help businesses analyze and predict future trends for sales. Another reason bookkeeping is important is because it records facts, if a company were to be accused of a crime it would have the information to prove or disprove it’s position. Research shows that businesses that begin with an accounting system are more likely to stay afloat longer than businesses that do not. The most important reason to create and maintain an accounting system it is legally required by the Internal Revenue Service. The IRS requires that every business record all their financial information for taxes each year. If the IRS finds suspicious activity in the financial statements provided, the
After graduation from high school, it is most likely that accounting will be on the bottom of someone’s list to major for their post-education. Most people think that accounting is an invaluable boring class in school so they would not even consider it as a class nor a degree. Although accounting can be considered as an insignificant class, it is extremely valuable.
Accounting aids the government and organisations in decision making for their financial stability. This numerical data helps solve real life problems and contributes to how the economy and businesses perform.
Accounting is a very important term to our modern society. It is the career for men and women who at the start have their eyes set on top positions in industry, management, government, and general business. Accounting is a basic need of every businessman, from the operator of a filling station to the government of the United States. It's so important to our society. None of the business organization can operate without is. They are there-somewhere-in every business. In small business, people use pen, ink and skill keep the records. In large business, modern accounting machines are used to operate. Men and women are directing these machines in the accounting process. Wise businessmen enter business must have some accounting knowledge.