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Computerised Accounting System

A computerized accounting system stores accounting information like books, ledgers, and journals digitally instead of on paper. It has advantages like being more accurate, able to handle larger amounts of data, and allowing for easier analysis. However, it also has disadvantages such as being more costly to set up and requiring coding knowledge. The main elements of a computerized accounting system include modules for invoicing, stock, ledgers, payroll, costing, fixed assets, and reporting. Integrated accounting software links these modules so data entered in one area automatically updates related areas.

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101 views2 pages

Computerised Accounting System

A computerized accounting system stores accounting information like books, ledgers, and journals digitally instead of on paper. It has advantages like being more accurate, able to handle larger amounts of data, and allowing for easier analysis. However, it also has disadvantages such as being more costly to set up and requiring coding knowledge. The main elements of a computerized accounting system include modules for invoicing, stock, ledgers, payroll, costing, fixed assets, and reporting. Integrated accounting software links these modules so data entered in one area automatically updates related areas.

Uploaded by

husse fok
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Computerised accounting system Micro computers

A computerized accounting system in principle is similar to a manual Microcomputers today commonly called PC are the type of computers
accounting system. The same ideas of day books, ledger, double entry, which are available for use to households and medium and small size
trial balance is involved. A manual accounting system uses books and businesses.
ledgers to record the information while the same information is stored They are made of hardware and software with different specifications
in floppy disks, CDs etc in a computerized accounting system. relating to their memory and speed.
Advantages Other business use of computers
 Can be used by non-specialists(person with little knowledge of  Generate receipts
accounting)  POS terminal
 Quick processing  Barcode reading
 More accurate  Automatic Teller Machines(ATM)
 Larger amount of date can be handled, processed, and stored Spreadsheets
 Analyis of data can be made easily A spreadsheet is an application software. it is like a sheet divided into
Disadvantages columns and rows, each intersection known as a cell. the cell can
 Time-consuming to install and costly contain texts, numbers or formulae.
 Possibility of unauthorized access Use of spreadsheets
 Need for coding  Create proforma Balance Sheet and profit and loss account.
 Lack of audit trail-Difficult to trace a mistake to its source  Fixed assets schedule
 Possible resistance of employees  Sensitivity analysis
Database
Main elements of a computerized accounting system A database can be defined as a pool of data. It is a “A file of data
structured in such a way that it may serve a number of applications”
 Invoicing A Database Management System(DBMS) is a software that runs the
 Stock database.
 Ledger A database must have the following characteristics:
 Payroll -It must be shared
 Costing -it must be integrity preserved
 Fixed assets register -Should provide for needs of users
 Reports -Must evolve.

Integrated accounting software


An integrated accounting software links the several modules(e.g
Debtors, sales etc)in such a way that data entered in one module can be
used to update other modules automatically imply with the users
instruction. E.g invoicing will update debtors list, stock etc
Advantages of an integrated accounting software
 One entry is sufficient to make all necessary adjustments
 Software can extract data from separate files to generate reports
 It is simple- avoids the need to load and unload disks

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