Computerised Accounting

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Name: Danielle Nolloche
Teacher: Mrs. John
Date Due: October 31st, 2011
Form: 5

Acknowledgements
I would like to express my greatest gratitude to the persons who have helped and supported me through out this project. I would like to thank my parents for the encouragement to complete this project. I will also like to thank my teacher for guidance and all other friends and family who assisted in any way.

Table of Contents
Acknowledgements
Introduction to project
Advantages and Disadvantages of using a computerized accounting system………………………………………………………………...……1 Factors taken into consideration before using a computerized Accounting …………………………………………………………..……3 Synopsis of programmes used in computerized accounting ……………...4 The Impact Of I.T in The future Accounting ……………………………..5 Glossary………………………………………………………………….6

Introduction
Advancement in Information technology has a prevalent impact on the accounting system procedures and skills required of an accountant. An understanding of information system is now a necessity as more businesses embark on computerized systems to reap the benefits of efficiency, accuracy and information technologies.

Advantages of using a computerized accounting system
Provides reports efficiently-There’s better use of recourses and time. Cash flow should improve through better debt collection and inventory control. •Accuracy it minimizes the amount of human errors in posting. If an error occurs in the data that has been inputted •Speed – data entry onto the computer with its formatted screens and built-in databases of customers and supplier details and stock records can be carried out far more quickly than any manual processing. •Availability of information – the data is instantly available and can be made available to different users in different locations at the same time. •Cost savings – computerized accounting programs reduce staff time doing accounts and reduce audit expenses as records are neat, up-to-date and accurate. Disadvantaged of using a computerized accounting system

Hacking and security issues – Accounting systems contain confidential information that should be kept safe and secure at all times. The consequences of unauthorized access can be devastating--from identity theft problems to loss of irreplaceable data. When accounting data is changed or deleted on purpose or by chance, it creates havoc in the accounting department, calling into question the reliability or accuracy of all data. •Expense - Accounting systems are expensive not only to purchase, but also to maintain. Software changes and there may be new versions to purchase. Operating systems also change and they can be expensive, especially for a -1-

Small business. If a computer stops working, then it needs to be fixed, incurring costs and delays in processing accounting information. •Dependency-Computerized accounting is dependent on machines and other software to work properly. Often enough if one thing is wrong with the computer, then there is no access to the software and work cannot be done. Then time and expense are involved in getting all the system and software up and running. But then, maybe the printer stops working. There are many inter-dependent pieces in this puzzle of a computerized accounting and reliance on it 100% of the time is not realistic. •Training- When getting a new accounting system, there is always time and energy spent in training. After a system is bought, then about every year new versions are released with changes that may need some extra training getting used to. Some folks are just not "computer people" and it takes them lots of time to be able to use a system. Many times pencil and paper are just faster. •Loss of audit trail upon disposal- The process that creates audit trail should always run in a privileged mode, so it could access and supervise all actions from all...
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