Answer the following questions.
What is Computerised Accounting? Mention Features of Computerized Accounting?
What is Computerised Accounting? Mention Features of Computerized Accounting?
Computerised accounting is a system that is based on the concept of database. It is an accounting information system that processes the financial transactions and events in accordance with the Generally Accepted Accounting Principles (GAAP) to produce reports as per the requirements of the users.
Computerised accounting is one of the database-oriented applications, wherein the transaction data are stored in a well-organised database.
There are different accounting software/packages available for this system. For example: Tally, Busy etc.
Features of Computerised Accounting
a. Integrated Accounts: It integrates information from all the departments, i.e. sales department, marketing department, production department etc. and simplifies the business process and accounting.
b. Enhances Quick Decision-Making: This system allows and generates automatic and real-time comprehensive reports to help in quick decision-making.
c. Speed: Computerised accounting operations are done at a very high speed due to user defined interface.
d. Accuracy: The possibility of errors is minimised or reduced, as the primary accounting data is entered only once for preparing various accounting reports and for subsequent usage and processes.
e. Flexibility: It is more flexible, i.e. modifications can be made easily at any time.
f. Reliability: As the computerised accounting system is well-equipped in performing repetitive operations, it is comparatively more reliable than the manual system while carrying out accounting processes.
Computerised accounting is one of the database-oriented applications, wherein the transaction data are stored in a well-organised database.
There are different accounting software/packages available for this system. For example: Tally, Busy etc.
Features of Computerised Accounting
a. Integrated Accounts: It integrates information from all the departments, i.e. sales department, marketing department, production department etc. and simplifies the business process and accounting.
b. Enhances Quick Decision-Making: This system allows and generates automatic and real-time comprehensive reports to help in quick decision-making.
c. Speed: Computerised accounting operations are done at a very high speed due to user defined interface.
d. Accuracy: The possibility of errors is minimised or reduced, as the primary accounting data is entered only once for preparing various accounting reports and for subsequent usage and processes.
e. Flexibility: It is more flexible, i.e. modifications can be made easily at any time.
f. Reliability: As the computerised accounting system is well-equipped in performing repetitive operations, it is comparatively more reliable than the manual system while carrying out accounting processes.
