Modern Accounting Systems

Topics: Accounts receivable, Balance sheet, Accounts payable Pages: 5 (1357 words) Published: November 25, 2012
Modern Accounting Systems

Marcello F. Pirrelli

Introduction to Accounting – ACC 205

Professor: Beher Haski

01 October 2012

Part I: Introduction

Over the years, through trial and error, modern accounting systems have changed for both the better and worse. Modern accounting systems fulfill the basic accounting needs while offering increased accuracy in tracking trends, enabling collaboration and giving quick access to data. Computerized solutions offer the traditional transaction processing, classification of data and reporting while simultaneously increasing the range of inputs to give a clearer and more comprehensive picture of the financial health of a company (Gambling, 1975). The topic I selected for this research paper is how modern account systems have made a difference in modern organizations. Before taking this course I was unsure of how accounting was used in businesses or the way it was formatted. I aquired tremendous amount of knowledging from taking this class, from analysing transactions to utilizing accounting formats correctly (Gordon, 1937). During my high school and early college years I used excel spreadsheets for various projects, but never did I have to utilize them to the extent I did in my Accoungting class. I learned how to successful create balance sheets, income statements, and so much more. Lastly, the cirriculum provided enabled me to correctly use different accounting ledgers to create successful and understandable business financial statement. Modern technology and systems are making accounting processes more cost efficient, which subsequently strengthens a companies ability to increase their profits. Part II: Body

Whether a small corner-store or large multimillion dollar organizations, each was created with its own innovations based on their believe of having the best account perspectives. They were successful for a short time by applying new costs such as JIT systems, which showed a significant improvement of their cost and budgeting systems. Their sociological perspective can be understood as a point of view that focuses not only on individuals in a company, but on the whole group or society (Romney, 2011). However, unfortunately many flaws and late technology slowed their progress down with many flaws that could have been improved with their value of modern management accounts systems. The main change has been the amount of money spent by organizations. In the past, companies big or small needed a dozen accounting clerks in order to prepare all documents manually, and of course this was time consuming which generated large wage payout. Today, small and large companies use modern computerized software on computers that can perform a more accurate detail submission. This new technology only requires a small group of people if not one or two people performing the accounting section, which minimizes the money spent on hiring personnel. In addition, another factor to consider when speaking of modern account systems is perpetual inventory systems (PTS). This controls the inventory in all stores and main warehouse by single scans. The scans come from the cashier ringing the merchandise which is automatically added to the order sheets. Larger companies such as Wal-Mart and Target provided the sales floor employees with handheld computers that track in store stock as well as inventory controls. These moderns’ scanners control the operations of the company, as employees work products to sales floor each item is scanned and tracked, then ordered automatically if needed. While working at Wal-Mart, each employee was required to carry at least one per department. The handheld was the kiosk for the entire store. If provided inventory controls, counting and ordering methods. As well as accounts processes that would allow the employee to create worksheets to log in numbers and as well as operating cost....
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