Archive about 'Computerised Accounting'

Comparison Of The Steps Of An Accounting Cycle Under The Manual System and Under The Computerized System

Steps In Accounting Cycle

Manual System

Computerized System

1

Analyze source documents

Manual

Manual

 
2

Record transactions in journal

 
Manual

Manual data entry includes manual electronic coding

3

Post to Ledger accounts

Manual

Automatic

4

Prepare Unadjusted Trial Balance

Manual

Automatic

5

Journalize adjusting entries

Manual

Manual

6

Post adjusting entries

Manual

Automatic

7

Prepare adjusted Trial Balance

Manual

Automatic

8

Journalize closing entries

Manual

Automatic

9

Post closing entries

Manual

Automatic

10

Prepare post-closing […]

Question On Computerized Accounts

Question On Computerized Accounting:

You started work in ABC Company Ltd. The Management is asking you to implement a computerized accounting system. The following questions were posed to you:-  
(a) “What benefits will a computerised accounting system bring your company?” State up to five possible benefits.
(b) “There are so many different packages on the market. What should […]

Internal Control In A Manual And Computerized Accounting Environment ( Part 3)

The following are some of the controls in a Manual and Computerized Accounting System:

Controls In Manual Accounting System

·      Independent reconciliation of external data like using bank statement to reconcile to the company’s bank account or using external supplier statement of account to reconcile with our individual creditor account;
·      Using Control or Total Account
·      Review of the […]

What Are The Advantages And Disadvantages of Computerised Accounting Systems (Part 2)

The advantages and disadvantages are as follows:

Advantages

· Faster and efficient in processing of information;
· Automatic generation of accounting documents like invoices, cheques and statement of account;
·With the larger reductions in the cost of hardware and software and availability of user-friendly accounting software package, it is relatively cheaper like maintaining a manual accounting system;
· More timely information can […]

Characteristic And The Difference Between Batch And Online Processing (Part 1)

Nowadays, the modern accountant needs to know how computerized accounting systems work so that these systems can meet the needs of the organization and the users

Characteristics of Computerized Accounting System

·      All accounting systems follow the same sequence of Input to Processing to Output and
·      Transaction data need to be entered only once at the input […]

Factors To Consider When Buying A Small Business Accounting Software

When choosing an appropriate accounting software, it is critical that we should plan ahead as a smart business decision will later save us plenty of time and money in the future.
The following includes some of the factors to consider when buying a small business accounting software

1. Scalability

It is always very important to remember that as […]