Case Questions
Shiva did not like computers. A skilled accountant, she was shocked when her boss required her to use accounting software to transfer all the data from books and journals to the companies’ computer program. She used to do all calculation and recording information using paper and a pen. Shiva trusted the manual method; however she was suffering from spending hours to do her tasks. She knew that accounting process is an integral part of her company, thus she was not sure how reliable computer’s software can be.
Max Weber (2011) in the article, “Manual Accounting Versus Computerized Accounting,” explains accounting as an important part of each business. Every company has to reveal sets of particular financial information and management reports to the public and the government. Accounting is keeping books on company credits and debits which are account entries with negative and positive value for assets. In other words, accounting is a systematic process of recording, reporting, and analyzing financial transactions of a business, and accountants are people who perform these processes. Accountants analyze the financial statistics of businesses including net profit and economic information that are used and judged by consumers and government taxation. Businesses use it to help them control their transactions and ensure that the costs are meaningful. Accountants help in reducing unnecessary expenses and increasing the revenue of the companies. In the article, ”Comparison Between Manual and Computerized Accounting” Mary Magdalene (2010), an expert author, mentions that accounting has three main steps; 1) Recording all the transactions to a “journal”, 2) Posting them into ledger accounts, 3) Preparing trial balances, adjusting entries and trial balances, preparing entries and balance sheets. These steps may seem simple but they could be hectic having thousands of entries and transactions. Not very long ago, all businesses used to do the bookkeeping processes
Max Weber (2011) in the article, “Manual Accounting Versus Computerized Accounting,” explains accounting as an important part of each business. Every company has to reveal sets of particular financial information and management reports to the public and the government. Accounting is keeping books on company credits and debits which are account entries with negative and positive value for assets. In other words, accounting is a systematic process of recording, reporting, and analyzing financial transactions of a business, and accountants are people who perform these processes. Accountants analyze the financial statistics of businesses including net profit and economic information that are used and judged by consumers and government taxation. Businesses use it to help them control their transactions and ensure that the costs are meaningful. Accountants help in reducing unnecessary expenses and increasing the revenue of the companies. In the article, ”Comparison Between Manual and Computerized Accounting” Mary Magdalene (2010), an expert author, mentions that accounting has three main steps; 1) Recording all the transactions to a “journal”, 2) Posting them into ledger accounts, 3) Preparing trial balances, adjusting entries and trial balances, preparing entries and balance sheets. These steps may seem simple but they could be hectic having thousands of entries and transactions. Not very long ago, all businesses used to do the bookkeeping processes