Preview

Conventional Accounting Systems

Good Essays
Open Document
Open Document
589 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Conventional Accounting Systems
The Difference Between Traditional Accounting & Computerized Accounting by Sheila Shanker, Demand Media
Traditional and computerized accounting are helpful to many businesses.
Related Articles

Difference Between Payables and Receivables in Accounting What Is the Difference Between Budgetary Basis Accounting & GAAP Accounting? The Advantages of Manual Vs. Computerized Accounting Advantages of a Computerized Accounting System The Difference Between Net Income & Pretax Accounting Income The Difference Between Strategic & Traditional HR

Before the advent of fast and cheap computers, accounting traditionally was processed manually with all transactions recorded in columnar papers and kept in voluminous binders. Once computers became popular and software affordable, accounting tasks moved into this medium, where concepts stayed the same but mechanics changed from papers to programs.
Sponsored Link
Diesel Exhaust Brakes
Exhaust Brakes On & Off-Highway Euro 6 & Tier 4 Compliant www.GTPP.co.uk Speed

The most glaring difference between traditional and computerized accounting is the speed of operations. With an accounting program, data is entered once and it is saved. The program provides management with reports in a speed never dreamed possible in the traditional days. No more waiting days or weeks to know whether your business is making a profit. Using computerized accounting, information can be accessed in a matter of minutes. Once data is available in the system, it can be used in reports, queries and analysis.
Accuracy

Computerized systems have drastically increased accuracy of calculations when compared to the traditional, manual system, in which columns had to be added up, numbers moved from one page to the next, and trial balance and financial statements manually compiled. If errors occurred, many hours had to be spent trying to find and correct them. With accounting software, this problem is eliminated. In the case of
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Case Study
    • 625 Words
    • 3 Pages

    Case Study

    Accountants often have different views when it comes to using technology in accounting and the methods that are used in the process of preparing financial statements. Some accountants are less willing to change the way they conduct their accounting processes because they have always completed tasks in a similar manner and it worked for them. Accountant A, in this case, would be the accountant that is not as willing to embrace the technological advances that are available in the accounting field and use those advances to his advantage. Accountant B, on the other hand, would rather develop and maintain a system that provides a timely and accurate inventory for the company. Accountant A is pleased with how the audit of the inventory turned out, while Accountant B was quite displeased with the findings. Accountant A is happy with how the audit turned out because it shows that the way he does his job still works. He does not seem to worry about the decisions the company has made due to the error in the computer system. Accountant B is unhappy with the findings because she realizes…

    • 625 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Acc 340 Wk 1 Individual
    • 823 Words
    • 4 Pages

    Acc 340 Wk 1 Individual

    Accounting technology is not new, and has been a part of calculating and tracking numbers throughout time. From Leonardo da Vinci who designed a device he labeled the “Codex Madrid” number machine to Blaise Pascal who invented the first early calculator to William Burroughs who created the first adding machine, those who specialized in numbers have sought ways of making the tasks of their profession or hobby much simpler. As time passed, more creations emerged to help accountants perform their expertise more accurately and faster. The first computer was built midway through the twentieth century. For the nearly 50 years that followed, huge computers designed to perform the simple task of calculating mathematical equations were eventually scaled down to fit on top of desks in consumers’ homes and offices. The world of accounting went from manually inputting data into a ledger to using electronic spreadsheets that eliminated the need for ledgers, calculators, pencils, and adding machines. Out with the hardcopy and in with the software.…

    • 823 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    personality demension by
    • 759 Words
    • 5 Pages

    personality demension by

    Explanation: With modern computerized systems, the logic of accounting is already built into the software. There is no need to keep a separate set of books and documents for specific types of transactions.…

    • 759 Words
    • 5 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Ais Attacks and Failures
    • 1768 Words
    • 8 Pages

    Ais Attacks and Failures

    * Your company has always used manual accounting. And now you feel need to have accurate and fast flow of information.…

    • 1768 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Effects of Technology on the Accounting Profession
    • 427 Words
    • 2 Pages

    Effects of Technology on the Accounting Profession

    New technology in information systems have bought significant changes in accounting profession, practices and processes. It has increased the efficiency and accuracy in accounting and has speed up the process for manual accounting tasks, but also improved security of accounting data and increased transparency. Large organizations and multinationals are changing over to this new information systems and technologies to carry out their accounting tasks on global basis. This information system has led to standardization not only among the different divisions, locations and offices of a single organization, but also on a global basis.…

    • 427 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Accounting System
    • 879 Words
    • 4 Pages

    Accounting System

    Most accounting systems evolve as the business grows and requires changes in their methods for collecting, accumulating, and reporting information.…

    • 879 Words
    • 4 Pages
    Powerful Essays
    Read More
  • Good Essays

    Accounting Systems
    • 539 Words
    • 3 Pages

    Accounting Systems

    Internal Control Systems are processes put in place to safeguard the company. In the simulation, the task was given to help a new company set up an internal control system, implement control procedures for specific internal control issues, and manage the internal control system as the company continues to grow.…

    • 539 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Enron Financial Statement Case
    • 346 Words
    • 2 Pages

    Enron Financial Statement Case

    Accounting is all about financial information —capturing it, recording it, configuring it, analyzing it, and reporting it to persons who use it.…

    • 346 Words
    • 2 Pages
    Good Essays
    Read More
  • Better Essays

    What Technology Has Mostly Benefited Our Society the Most?
    • 1107 Words
    • 5 Pages

    What Technology Has Mostly Benefited Our Society the Most?

    The business world has transformed beyond recognition over the past few decades. Since the latest progressions in technology were often necessary to accomplish firms’ successes, businesses have been at the forefront of technological changes. As computers emerged in the 20th century, they promised a new age of information technology. For example, until the 1980s, a large corporation with a separate accounting department rented a large space in order to house its accounting personnel. In that facility, several Accounts Receivable, Accounts Payable, Purchasing, Receiving, and Payroll each had its own set of book accounts. It also took the combined efforts of several employees over several days to generate a standard periodic account report using typewriters. However, the landscape is different today for the accounting departments of such large corporations. One is now much more likely to output more work in a shorter time span using computers because of its multiple processes. While typewriters are only capable of typing up documents, computers are capable of automating business processes that accomplish the work in a fraction of the time. For example, by transferring bookkeeping functions to…

    • 1107 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    Cloud Based Accounting
    • 1553 Words
    • 7 Pages

    Cloud Based Accounting

    On the other hand, software based accounting requires maintenance and troubleshooting but still retaining the ability to maintain sensitive data in storage house while on the contrary web based accounting system requires users to pay…

    • 1553 Words
    • 7 Pages
    Good Essays
    Read More
  • Good Essays

    Comparing Accounting to Manual Accounting
    • 559 Words
    • 3 Pages

    Comparing Accounting to Manual Accounting

    Manual accounting uses several paper ledgers to record financial transactions. It is very time consuming to record each single transaction onto paper, being very cautious not to make an error. There are several ledgers for each part of the accounting system, such as accounts payable, accounts receivable, and revenue accounts. Combining these ledgers into one general ledger, provide the balance for each ledger. The general ledger assists in organizing income statements and balance sheets. On the other hand, there are computerized programs such as spreadsheets and simply accounting, which necessitate accountants to enter data into the program, and then mathematical algorithms calculate the information into the ledgers. Computerized system also allows accountants to create analysis and report any changes quickly and accurately. Additionally, all of the transactions recorded are accessible and through computerized accounting systems, giving accountants better access to the information.…

    • 559 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Principles of Accounting
    • 289 Words
    • 2 Pages

    Principles of Accounting

    Technology has changed accounting in a number of ways. Accounting soft ware has made it easier to set up accounts. The internet has made advertising and marketing able to reach a larger and wider audience. It has also enabled business owner to have face-to-face meetings online with anyone in the world.…

    • 289 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Effects of Technology on Accounting
    • 719 Words
    • 3 Pages

    Effects of Technology on Accounting

    The accounting profession has experienced many different changes and as well as a tremendous amount of growth over the past century. (Schaefer, 1998) It's unfortunate that due to unethical accounting practices there has been an increased need for advanced technology of accounting systems in order to better monitor what is going on with organizations. The need for real time reports and financial information at the click of a button seems to be the trend these days. This paper will give examples of how technology has changed the accounting profession as well as some example of the changes within my organization.…

    • 719 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Accounting: Traditionally Accounting Information Is Recorded By Hand Written Form
    • 426 Words
    • 2 Pages

    Accounting: Traditionally Accounting Information Is Recorded By Hand Written Form

    Another advantage of using computerized accounting systems is accuracy. With traditional accounting accountants had to calculate everything manually, columns had to be added up and numbers were moved from page to page. This left room for many clerical errors. A trial balance is normally done to check for arithmetical errors. However a trial balance does not guarantee that all errors will be detected. If an error occurred, many hours had to be spent trying to find and correct them. With accounting software, this problem is somewhat eliminated. Most computerized accounting systems have internal check and balance measures to ensure that all transactions and accounts are properly balanced before financial statements are prepared. While errors still can occur, computerized systems will not allow journal entries to be out of balance when…

    • 426 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    Common Accounting System
    • 11382 Words
    • 46 Pages

    Common Accounting System

    COMMON ACCOUNTING SYSTEM INTRODUCTION 1. Most of the State Cooperative Societies Acts have provisions regarding preparation and submission of financial statements such as Balance Sheet, Profit and Loss Account and Trading Account of PACS. However, the formats for financial statements of PACS have not been prescribed in many States. The existing formats have evolved over a period of time on the basis of instructions from the RCS, Director of Audit, etc., There is no uniformity and transparency in the formats adopted by PACS within the States 2. The Task Force on Revival of Short-Term Cooperative Credit Structure observed that PACS, in many states, do not follow standard accounting systems and do not make adequate provisions against NPAs and follow proper income recognition norms. While PACS, in some States, make provisions for bad and doubtful debts as per the guidelines issued by the erstwhile Agriculture Credit Department (ACD) of Reserve Bank of India, PACS in other States like Andhra Pradesh, Uttarakhand and Kerala follow Income Recognition and Asset Classification (IRAC) norms as applicable to DCCBs/SCBs as prescribed by the Registrar of Cooperative Societies of the State concerned. A large number of PACS in many States continue to adopt single entry system of accounting, even though a number of PACS in these States have adopted double entry system of book-keeping. 3. The introduction of a Uniform Accounting System for the PACS would depend upon a number of factors like adoption of Common Financial Statements by PACS, exhaustive list of General Ledger Heads of Accounts, applicability of various accounting principles like following double entry, netting concepts, introduction of prudential norms (IRAC), viz., Income Recognition, Asset Classification and Capital Adequacy Norms. As indicated in the Revival Package, implementing States will have to adopt prudential norms for PACS in consultation with NABARD, while recapitalization assistance would provide for…

    • 11382 Words
    • 46 Pages
    Powerful Essays
    Read More

Related Topics