Computerized Accounting System


By

Ms. A. Indira
Senior Lecturer
School of Management
S.N.S. College of Technology
Coimbatore-641 635
 


1. The Accounting System

Accounting is the method in which financial information is gathered, processed, and summarized into financial statements and reports. An accounting system can be represented by the following graphic.


Fig 1.1 The Accounting System

The purpose of accounting is to provide information used in decision making. Accounting may be viewed as a system (a process) that converts data into useful information.

Information processes include:

    • Recording
    • Maintaining
    • Reporting

Every business has numerous processes. Some simple, others complex and cumbersome. But as the business grows, acquires new customers, enters new markets and keeps pace with constant changes in statutory regulations... the company will need to maintain highly accurate and up-to-date accounting, inventory and statutory records.

This is where a computerized accounting helps simplify, integrate, and streamline all the business processes, cost-effectively and easily.

2. Salient Features of Computerized accounting

2.1. Fast, Powerful, Simple and Integrated

Computerized accounting is designed to automate and integrate all the business operations, such as sales, finance, purchase, inventory and manufacturing. With Computerized accounting, accurate, up-to-date business information is literally at the fingertips. The Computerized accounting combine with enhanced MIS, Multi-lingual and Data organization capabilities to help the company simplify all the business processes easily and cost-effectively.

2.2. Complete Visibility

Computerized accountings giving the company sufficient time to plan, increase the customer base, and enhance customer satisfaction. With Computerized accounting the company will have greater visibility into the day-to-day business operations and access to vital information.

2.3. Enhanced User Experience

Computerized accounting allows the company to enter data in a variety of ways which makes work a pleasure. Adapting to the specific business needs is possible.

2.4. Accuracy, Speed

Computerized accounting has User-definable templates which provides fast, accurate data entry of the transactions; thereafter all documents and reports can be generated automatically, at the press of a button.

2.5. Scalability

Computerized accounting adapts to the current and future needs of the business, irrespective of its size or style.

2.6. Power

Computerized accounting has the ability to handle huge volumes of transactions without compromising on speed or efficiency.

2.7. For Improved Business Performance

Computerized accounting is a highly integrated application that transforms the business processes with its performance enhancing features which encompass accounting, inventory, reporting and statutory processes. This helps the company access information faster, and takes quicker decisions. Computerized accounting also guarantees real-time optimization of operations and enhanced communication.

2.7. Quick Decision Making

Generates real-time, comprehensive MIS reports and ensures access to complete and critical information, instantly.

2.8. Complete Reliability

Computerized accounting makes sure that the critical financial information is accurate, controlled and safe from data corruption.

3. Advantages of Computerized accounting

  • Automation of tedious clerical jobs
  • Speed and accuracy
  • Low cost of packages
  • Automatic generation of standard reports
  • Redundant data storage permits efficient generations of some reports
  • Increase revenue while lowering operating costs and enhancing competitive advantage of the company.

4. Disadvantages of Computerized accounting

  • Transactions orientation only
  • Periodic not real time reporting
  • Limited flexibility for ad hoc reports
     


Ms. A. Indira
Senior Lecturer
School of Management
S.N.S. College of Technology
Coimbatore-641 635
 

Source: E-mail May 31, 2007

       

Back to Articles 1-99 / Back to Articles 100-199 / Back to Articles 200-299 / Back to Articles 300-399
Back to Articles 400-499 / Back to Articles 500 Onward / Faculty Column Main Page

 

Important Note :
Site Best Viewed in Internet
Explorer in 1024x768 pixels
Browser text size: Medium