REVIEW OF RELATED LITERATURE
The study aims to help and assess the effectiveness of computerize accounting system for organizations. It applies a case study plan to create the appropriate system for the Mimosa Company which is chosen by the proponents to be the case of the study. This chapter includes related literature to support the development of the proponents study and. The following literatures are to affirm the need to create a computerize system for the said company.
In our generation, computers are widely used by different institutions, companies, industries, schools, and particularly business sectors. They used computer to lessen workload and for convenience and to acquire more reliable outputs.
According to Pankaj Pendse (2012) Integrated accounting system is a distinguished accounting system in which the accounts are integrated and only a single set of accounts are maintained. Essentially it avoids maintenance of Accounts under cost accounting and financial accounting. This enables a firm to eliminate separate Profits & loss Accounts under financial accounting and cost accounting systems & only Profit & loss Accounts are prepared. The development of a computerized Accounting System for the Mismosa will saves the accountants effort of encoding data from clients, saves time & efforts, and user friendly.
According to Steve Pugh (2012) The new economy requires a new way of doing business. Businesses must be flexible to accommodate the changes that arise in today’s rapidly fast-paced business environment, in this pressure-cooker business landscape, strategic finance is more important than ever. Corporate management is relying on the ‘sages of financial insight’ to provide up-to-date financial information so they can make better, more informed decisions. The accounting department is also expected to effectively navigate the world of changing regulations and mitigate risk. by automating as much as possible, accounting departments have been able to successfully gain efficiencies and visibility. By doing the computerized accounting system the Mimosa will help them in the process of accessing data faster, and help them analyze data.
According to Gale Cengage (2011) ERP systems are large-scale information systems that impact an organization's AIS. These systems permeate all aspects of the organization and require technologies such as client/server and relational databases. Other system types that currently impact AISs are supply chain management (SCM) and customer relationship management (CRM). Modern ERP systems provide a broader view of organizational information, enabling the use of advanced accounting techniques, such as activity-based costing (ABC) and improved managerial reporting using a variety of analytical techniques.
According to accountingcoach in accounting, ERP is the acronym for enterprise resource planning. ERP could be described as a database software package that supports all of a business’s processes and operations. Its goal is to have an integrated system for organizations. If the company will include information on its different departments, their operations and transactions the system would be sophisticated, in turn a company requires committing considerable resources for planning, training, and implementing an ERP system. The purpose of ERP is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.
According to Wikipedia, computer is a general purpose device that can be programmed to carry out a finite set of arithmetic or logical operations. For an effective accounting system computer will give an organization a benefit of convenience of work since the computer is a device that can be program which means its function’s scope is wider than a single person doing a manual job....