5th B.

Com DSBM, BBSR Priyadarshini Nayak

COMPUTERIZED ACCOUNTING SYSTEM

Unit – II
Introduction
• Computerized Accounting refers to accounting done with the aid of computers.
• It tends to involve dedicated accounting software and digital spreadsheets to keep
track of a business or financial transactions.
• A Computerized Accounting System is a software program that is stored on a
computer, network server or remotely accessed via the internet and provides great
benefits to the business. It can help streamline accounting procedures as well as
minimize errors.

Objectives of Computerized Accounting

• Labour Saving:
• It refers to annual savings in the labour cost and simultaneously increase in the
volume of work handled by the existing staff through a computer terminal.
• Time Saving:
• Computer systems are faster than human efforts and therefore save good
amount of time spent on creating manual accounting systems.
• The time saved here can be utilized to perform some other tasks.
• Minimization of Frauds:
• Computerization is helpful in minimizing the chances of frauds committed by
employees, especially in maintaining the account books and financial
information.
• Accuracy:
• Accuracy in account information is a very important feature of any business.
• Computerizing accounts can help is reducing errors and achieving accurate
information and results.
• Effect on Personnel:
• It reduces the human effort that was required in maintaining manual account
books.
• It also may improve the moral value of employees as there is fear of getting
caught in case of any discrepancy.
• Convenient data storage and retrieval:
• Data stored in computers are usually portable in nature and can be accessed
anywhere anytime through an internet connection.
• Fetching of required information is fast and easy.
5th B.Com DSBM, BBSR Priyadarshini Nayak

Features of Computerized Accounting System

• Fast, powerful, simple and integrated
• Complete visibility and enhanced user experience
• Accuracy
• Speed
• Scalability
• Improved business performance
• Quick decision making
• Complete reliability
• Access from anywhere and at anytime

Advantages of CAS
• Universal Application of all accounting activities
• Transactions can be done anywhere and anytime
• Shortens the time period for almost all accounting processes
• Ease of use
• Easy to process voluminous data
• Codification is possible
• Accurate information
• Scalable to any number of records
• Reliable to failures and data loss
• Aids management in decision making processes by providing management reports

Disadvantages of CAS
• Needs heavy initial investments for computerization
• Security and privacy threats
• Loss of data in case of system failures
• An artificial device (without intelligence)
• Possibility of manipulations
• Not affordable by small firms
• Requires training on part of accountants and other users
• High cost of maintenance
• System may be subjected to viruses/malwares or attackers
• Leads to unemployment

Specialized Software for CAS

• In most general terms, Computer Assisted Auditing Techniques (CAATs) refers to any
computer program utilized to improve the audit process.
• It refers to any data extraction and analysis software.
• This would include software such as:
• Spreadsheets (Example: MS Excel)
• Databases (Example: MS Access)
• Statistical Analysis (Example: SAS)
• Business Intelligence (Example: Crystal Reports), etc.
5th B.Com DSBM, BBSR Priyadarshini Nayak

Introduction to Database
● A database is a structured and organized collection of related data.
● It is a set of interrelated files for real time processing.
● It may be defined as an application package used for efficient storage and retrieval of
data.
● Note:
○ A package software is a collection of programs/software that performs similar
functions or have similar features.
○ Example: Microsoft Office is a package software that consists of MS Word, MS
PowerPoint, MS Excel, MS Access, MS Outlook, etc. all dealing with data storage
and presentation.

Why to use a Database?

● Every organization needs to keep records of transactions they perform with suppliers and
customers.
● Organization needs the records of employees, orders, invoices, etc.
● The business needs to be able to find information quickly and easily as and when required.
● It makes the process of data storage, data organizing and data fetching easier and
convenient to manage, handle and access.
● It can be linked to websites for access over the internet.

Database Terminologies
● Entity:
○ This is the things / objects you are recording information about.
○ Example: Person, Employee, Country, Customers, Product, Library, etc.
● Attributes/Fields:
○ These are the characteristics that describe the entity.
○ For Example: If Employee is the entity, then its attributes may be:
■ Name
■ Employee ID
■ Age
■ Address
5th B.Com DSBM, BBSR Priyadarshini Nayak

● Record:
○ A record holds all the data relating to a single person or a single transaction, etc.
○ A record is a collection of fields.
○ A record may have as many numbers of fields as per required.
○ It usually gives an overall report regarding a particular member of the entity.
● Table:
○ It is a collection of records arranged in rows and columns.
○ Each column is an attribute value.

● An Organization Database:
○ It contains all the files within the organization.
○ For Example:
■ A College Database may contain the following files:
● Student File
● Employee File
● Course File
● Faculty File
● Non-Teaching Staff File
● Accounts File

Database Models
● Not all databases store data in the same way.
● This depends on the type of database software used.
● Types of Database Models:
○ Hierarchical Database Models
○ Network Database Models
○ Relational Database Models
○ Object Oriented Database Models
● For Example: MS Access Database software is based on the relational database
model.
5th B.Com DSBM, BBSR Priyadarshini Nayak

Database Management System (DBMS)

● Database Management System (DBMS) is the software that manages the database.
● It is the user interface that allows the user to create, add, delete and manipulate the
data in the database.

Example: A College Database

Primary Key
● A primary key is an attribute of the table that has the capability to uniquely identify
each record in that table.
● Properties of Primary Key:
○ It must be unique
○ It must not have duplicate entries
○ It cannot be NULL

Foreign Key
● A key that is a primary key of one table and a candidate key in another table.
● Used to link two tables in a database.

Linkage & Relationships

● Two or more tables must be linked together in order to deduced some information
regarding the entity.
5th B.Com DSBM, BBSR Priyadarshini Nayak

● For this we need to repeat some fields (attributes) in all the tables that needs to be
linked. These repeated fields are the common attributes among the tables.
● When we want to link data from different tables, then we have to define relationships
among those tables.
● This involves linking the primary key field of one table with a field in the other table.
● This linkage is performed by assigning foreign keys.
● Foreign key may be one field or a combination of attributes that can identify the
record from both the linked tables.

Database Query
● A query is the information that we want to retrieve or fetch from the database.
● When we want to extract any information from a database then this is referred to as
a “Query”.
● It is a fancy term used to describe the process of retrieving information from the
database.
● The result is a screen display that shows the information you want which have been
extracted from one or more tables.

Features of DBMS
● It allows us to create database files.
● It enables the users to add, delete, update or change data in the database.
● It facilitates in linking tables.
● It allows to query the database.
● The user can produce reports on screen or in printed form.

Procedure of DBMS Usage

The procedure is as follows:
● The user requests a report through the application program. The application program
uses a data manipulation language (DML) to tell the DBMS what is required.
● The DBMS refers to the data model, which describes the view in a language called the
data definition language (DDL). The DBMS uses DDL to determine how data must be
structured to produce the user's view.
● The DBMS requests the input/output control system (IOCS) to retrieve the information
from physical storage as specified by the application program. The output is the
desired report.
5th B.Com DSBM, BBSR Priyadarshini Nayak

Functions of DBMS
● Storing, retrieving, and updating data.
● Creating program and data independence. Either one can be altered independently of
the other.
● Enforcing procedures for data integrity.
● Reducing data redundancy. Data are stored and maintained only once.
● Providing security facilities for defining users and enforcing authorizations. Access is
limited to authorized users by passwords or similar schemes.
● Reducing physical storage requirements by separating the logical and physical aspects
of the database.

Advantages of DBMS
● The DBMS makes the entry of the data to the system quick and easy.
● Data is organized in a way that minimizes data redundancy (re-entry of the same data
over and over).
● A DBMS allows the organization to have a central store of information, so that it can
be accessed as and when needed.
● DBMS can keep data secure by using authentication methods like passwords, IDs, etc.,
thereby limiting the access to only authorized persons.
● Better access to data for decision making as report creation is convenient.
● Easy data updates and retrievals.
● Reduced data redundancy and losses; and enhanced data integrity.

Disadvantages of DBMS
● The cost of the DBMS software is an overhead for most organizations.
● The designing and implementation is a complex process.
● Requires good amount of computer space as it deals with huge quantity of data.
● Data backup procedures are necessary for the security of data from losses.
● In case of database failure, the impact can be disturbing for the organization.
● Skilled personnel are required to manage and deal with database management
systems.
● In case of no skilled workforce, then additional training needs to be provided.
5th B.Com DSBM, BBSR Priyadarshini Nayak

MS Access DBMS
● Microsoft Access is a fully functional RDBMS.
● It provides all the features that are needed to manage large volumes of data.
● Any RDBMS categorizes its functional features as follows:
● Data Definition
● Data Manipulation
● Data Control
● Each of the above has its own set of queries (commands in SQL) and deals with a
specific type of task in the database management system.

MS Access Objects
● MS Access uses “objects" to help the user list and organize information, as well as
prepare specially designed reports. Access calls anything that can have a name as an
object.
● When you create a database, Access offers you Tables, Queries, Forms, Reports,
Macros, and Modules.
● Databases in Access are composed of many objects but the following are the major
objects:
● Tables
● Queries
● Forms
● Reports
● Together, these objects allow you to enter, store, analyze, and compile your data.

Object: Table
● Table is an object that is used to define and store data.
● When you create a new table, Access asks you to define fields which is also known as
column headings.
● Each field must have a unique name, and data type.
● Tables contain fields or columns that store different kinds of data, such as a name or
an address, and records or rows that collect all the information about a particular
instance of the subject/entity.
● You can define a primary key, one or more fields that have a unique value for each
record, and one or more indexes on each table to help retrieve your data more quickly.
5th B.Com DSBM, BBSR Priyadarshini Nayak

Object: Query
● Query is an object that provides a custom view of data from one or more tables.
● These are a way of searching for and compiling data from one or more tables.
● Running a query is like asking a detailed question of your database.
● When you build a query in Access, you are defining specific search conditions to find
exactly the data you want.
● In Access, you can use the graphical query by example facility or you can write
Structured Query Language (SQL) statements to create your queries.
● You can define queries like Select, Update, Insert, or Delete data.

Object: Form
● Form is an object in a database designed primarily for data input or display or for
control of application execution.
● You use forms to customize the presentation of data that your application extracts
from queries or tables.
● Forms are used for entering, modifying, and viewing records.
● The reason forms are used so often is that they are an easy way to guide people
toward entering data correctly.
● When you enter information into a form in Access, the data goes exactly where the
database designer wants it to go in one or more related tables.

Object: Report
● Report is an object in databases designed for formatting, calculating, printing, and
summarizing selected data.
● You can view a report on your screen before you print it.
● If forms are for input purposes, then reports are for output.
● Anything you plan to print deserves a report, whether it is a list of names and
addresses, a financial summary for a period, or a set of mailing labels.
● Reports are useful because they allow you to present components of your database
in an easy-to-read format.
● You can even customize a report's appearance to make it visually appealing.
● Access offers you the ability to create a report from any table or query.
5th B.Com DSBM, BBSR Priyadarshini Nayak

Object: Macro
● Macro object is a structured definition of one or more actions that you want Access
to perform in response to a defined event.
● An Access Macro is a script for doing some job. For example, to create a button which
opens a report, you could use a macro which will fire OpenReport action.
● You can include simple conditions in macros to specify when one or more actions in
the macro should be performed or skipped.
● You can use macros to open and execute queries, to open tables, or to print or view
reports.
● You can also run other macros or Visual Basic procedures from within a macro.
● Data macros can be attached directly to table events such as inserting new records,
editing existing records, or deleting records.
● Data macros in web apps can also be stand-alone objects that can be called from other
data macros or macro-objects.

Object: Module
● Module is an object in databases containing custom procedures that you code using
Visual Basic.
● Modules provide a more discrete flow of actions and allow you to trap errors.
● Everything that can be done in a macro can also be done in a module, but you don't
get the macro interface that prompts you what is needed for each action.
● Modules are far more powerful, and are essential if you plan to write code for a multi-
user environment, because macros cannot include error handling.
● Modules can be standalone objects containing functions that can be called from
anywhere in your application.
● They can be directly associated with a form or a report to respond to events on the
associated form or report.

SQL: Structured Query Language

● SQL stands for Structured Query Language, which is a computer language for storing,
manipulating and retrieving data stored in relational database.
● SQL is a data manipulation language. It is not a programming language.
● SQL commands are interpreted by the DBMS engine.
● It can be used interactively as a query language within the DBMS.
● They can be embedded within any programming language.
● It is the standard language for Relational Database System.
5th B.Com DSBM, BBSR Priyadarshini Nayak

● All RDBMS like MySQL, MS Access, Oracle, Sybase, Informix, Postgres and SQL Server
use SQL as the standard database language.

SQL Commands
Types of SQL Commands:
● Data Definition Language (DDL)
● Commands that define a database: Create, Alter, Drop
● Data Manipulation Language (DML)
● Commands that maintain & query a database: Insert, Update, Delete, Select
● Select command is also known as Data Query Language (DQL)
● Data Control Language (DCL)
● Commands that control a database like creating users and authorizing them:
Grant, Revoke

SQL Joins
There are different types of joins available in SQL:
● Inner Join: Returns rows when there is a match in both the tables.
● Left Join: Returns all rows from the left table, even if there are no matches in the right
table.
● Right Join: Returns all rows from the right table, even if there are no matches in the
left table.
● Full Join: Returns rows when there is a match in one of the tables.
● Self Join: It is used to join a table to itself as if the tables were to tables, temporarily
renaming at least one table in the SQL statement.
● Cartesian Join: Returns Cartesian product of the sets of records from the two or more
joined tables.