Application of Ict on Accounting
Applications of ICT in Accounting. Accounting records have been maintained only on a manual basis for a period now. The bookkeeper or the owner is required to fill a paper source document for each sale or receipt, and then work overtime writing the transactions of the day or week in special journals, stock cards, and debtor and creditor records. This obviously took some time, time that would otherwise have been spent operating the business. The business also pays extra money to account officers as overtime bonus. Consequently, completing the accounting records was sometimes seen as an impediment to business, rather than a tool of making it more profitable.
However, the development of computerized accounting systems has changed the way most businesses including small and medium scale enterprises keep their accounting records. A computerized accounting system involves the use of computer hardware and software to perform the recording, summarising, analysing and reporting functions that would otherwise have been done manually. This has allowed small business owners to make their accounting processes more efficient, thus leaving them more time to work on their core business. They are also able to take effective decisions on financial and monetary matters.
The widespread use and adoption of computerized accounting systems over the last few years can be attributed to the following factors:
Availability and affordability of hardware and software
The lower price of computer hardware has made it accessible to all people. A desktop or laptop computer can be purchased for less than GHS 1000. Also the computers of today are more powerful and can perform more complex functions. Small and medium sized businesses can now buy ‘off the shelf’ accounting programs at remarkably low cost if not free. Larger businesses will often have customized programs made for their business at a relatively cheaper cost. The accounting programs carry out functions such as invoicing, dealing
However, the development of computerized accounting systems has changed the way most businesses including small and medium scale enterprises keep their accounting records. A computerized accounting system involves the use of computer hardware and software to perform the recording, summarising, analysing and reporting functions that would otherwise have been done manually. This has allowed small business owners to make their accounting processes more efficient, thus leaving them more time to work on their core business. They are also able to take effective decisions on financial and monetary matters.
The widespread use and adoption of computerized accounting systems over the last few years can be attributed to the following factors:
Availability and affordability of hardware and software
The lower price of computer hardware has made it accessible to all people. A desktop or laptop computer can be purchased for less than GHS 1000. Also the computers of today are more powerful and can perform more complex functions. Small and medium sized businesses can now buy ‘off the shelf’ accounting programs at remarkably low cost if not free. Larger businesses will often have customized programs made for their business at a relatively cheaper cost. The accounting programs carry out functions such as invoicing, dealing
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