Computerised Accounting

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CHAPTER ONE

1.1 INTRODUCTION

It is known that, movement of information and effectiveness of information, timely reporting for internal and external use is one of the key aspects in success of services and goods provided by the organisation to its customer.

Before the development of computerised system in Tanzania most of public sectors, government sectors ,social service providers sectors and different business organisations, used manual method of recording and control over any transaction relating to financial and other activities.

With the expansion of those sectors the number of transactions increased. The manual method of recording, manipulation, producing, distributing and maintaining records found as to be unmanageable.

With the introduction of computers in those activities, the manual method of accounting is being gradually replaced. And finally, the database technology has revolution the accounts department of the business and non business organisations.

In the use of computerised accounting system the risk of data loss is eliminated, high speed in data manipulation is maintained and larger volume of data are kept safely. In computerised accounting system calculation became easy and controlled effective, also development of computerised accounting system, facilitate the ongoing operations of firm and contribute to its competitive strategy.

1.2 BACKGROUND OF THE PROBLEM

Before the installation of computerised accounting systems, all processes of accounting which associates with the system today, such as receiving data, recording, processing and reporting was done manually with pen and paper. This system made the job too difficult as it bumps into by the following problem.

It was easy for documents to get lost or being misplaced, sometimes would disappear completely. On the other hand it was easy to be destroyed or change necessary documents in different files, unnecessary debt to the government through local purchases and unnecessary overuse of public fund thus it was easy to collude and change the records.

Many government and non government organisation, were faced with problems of storing documents properly hence the information obtained was inaccurate, due to incomplete of data or takes long time to be completed due to long time taken in organising those required data. Control of expenditure with manual system was not easy, hence this lead to misuse of resources. As manual system used to consume more working hours unnecessarily by even involving many staffs for just a small and simple assignment, computerised accounting system will enables different sector of organisations to, make reporting on time, strengthening accountability, transparency and make good decision. Restricted over expenditure as well as data prepared will be accurate, correct recorded, efficiency as well as low cost will be incurred for those activities.

With the growth of technology, data preparation, processing and reporting by use computer programs tuned into simplicity in the way that, they can be processed faster and fastest as a speed of light before giving out clear and understandable report. Processing information in computer includes, arranging, sorting, summarising reporting and the like. Narrative computer radically changed the following

i. The way in which accounting data is processed
ii. Processing and arranging the result
iii. Training is needed to particular staffs who operates the systems iv. Recording and centralization
v. Speed of processing to give out the result
vi. Accuracy on output information

1.3 Significance of the study

The researcher wishes the significance of the study will be of the following ways:

i. Findings will enable the researcher to integrate his theoretical training obtained in the class with what is practically taking place.

ii. Study will enable other public sectors to identify different...
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