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The Use of Computers in Accounting

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The Use of Computers in Accounting
Manual Accounting Versus Computerized Accounting
By Max Weber

Accounting is an important part of every company. Businesses are required to keep books on their credits and debits. So which is best for your business idea - people or software?

As many professional accountants and auditors state - accounting is a language of business which is accepted in all developed and developing countries.

Every company applies accounting because it is generally accepted that companies have to reveal certain financial and management information to the government and public users and of course because accounting is indispensable tool in business decision-making process. With the development of information technologies there were developed many computer products (software) that make accounting as easy as ABC for those who uses them. From this point accounting can be divided into two basic categories: those which apply manual accounting and those which prefer computerized accounting systems. This paper is targets the main features of manual and computerized accounting, their benefits and shortcomings, and their comparison.

From the accounting theory it is known that accounting cycle includes the following steps: journalizing the transactions, posting them to ledger accounts, preparing trial balance, making adjustment entries, preparing adjusted to end-of-period trial balance, preparing financial statements and appropriate disclosures, journalizing and posting the closing entries, and preparing after-closing trial balance at last. From the first look it is not very difficult and it is so indeed, but when there are thousands or millions of transactions the situation dramatically changes. Lots of transactions that must be processed in the accounting cycle make this process routine and even a little mistake or inaccuracy can cause all the cycle from the very beginning in order to find and correct the mistake. So as to shed some light on the matter lets examine accounting

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