It can be define as:
"Computerized accounting" is accounting done with the aid of a computer. It tends to involve dedicated accounting software and digital spreadsheets to keep track of a business or client's financial transactions. Computerized accounting is a beneficial use of current technological advances. Not only has it revolutionized the traditional paper methods of accounting, but it has also created new types of accounting applications for business. Companies now create entire accounting information systems that integrate all business operations, including external suppliers and vendors in the value chain. Computerized accounting systems (or software) have replaced manual-based accounting in virtually all businesses and organizations, providing accountants, managers, employees and stakeholder’s access to vital accounting information at the touch of a button. Computerized accounting systems automate the accounting process--improving efficiency and cutting down costs. Computerized accounting tends to be more accurate, is faster to use, and is less subject to error than its manual counterpart.
Meigs et al (1998) defined a computerized accounting system as a system that uses computers to input, process, store and output accounting information inform of financial reports. Marivic (2009) described a computerized accounting system as a method or scheme by which financial information on business transactions are recorded, organized, summarized, analyzed, interpreted and communicated to stakeholders through the use of computers and computer based systems such as accounting packages.
FEATUERES OF COMPUTERISED ACCOUNTING
1. Fast , Powerful , Simple and Integrated
2. Complete Visibility Enhanced User Experience
7. Improved Business Performance
8. Quick Decision Making
9. Complete Reliability
The main advantages of a computerized accounting system are listed as:
A computerized accounting system reduces the risk of human error. Computers process numbers and perform calculations with 100 percent accuracy, which eliminates the possibility of a mathematical error leading to an inaccurate result. Accounting software also makes regular backups of key data for retrieval in the event of a system failure or security breach. Costs Saving
Updating a traditional accounting department to use a computerized system can represent a significant cost, especially for a larger business. Besides reorganizing personnel and buying the accounting software a business must also invest in new computers, regular software updates, training and a new recruiting policy to hire accountants who are familiar with the system or can learn to use it quickly. Human Need
As technology is going more and more advanced. Advance technology boot up the speed of business and business people need more work to do for the success of their businesses. In the large organization it becomes very necessary to use computer and accounting software to produce more authentic and more reliable records. Save Time
Using a computerized accounting system can save you time. Accounting software allows faster data entry than manual accounting, and allows documents such as invoices, purchase orders and payroll to be collated and printed quickly and accurately. Save Money
Computerized accounting systems offer several advantages for small businesses. Computerized Systems for small and medium sized businesses can be purchased off the shelf at low cost. These programs allow managers to see the company’s financial position in “real-time” and make adjustments to the business strategy as needed. Increased Productivity
Accountants who have access to computerized accounting systems can work more quickly and enjoy increased productivity. The software allows accountants to make changes faster than adjusting a printed ledger or chart. Less time...
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