...computer accounting as an area of studying has outline it’s important because with two or three weeks of training, a computer program can prepare financial statement using computer application. Accounting is an important function in the business sector. It helps business to keep records of income and expenses that occurs to the day to day activity of the organization or business. Accounting involve in the preparation of general journal, spreadsheet, ledger sheet and others which frightens and makes it difficult to some people. In the computerized accounting section, it helps make it easy and interesting to the individual. Indeed computerized accounting has a great impart in the accounting system. But to say that two or three weeks of training in computer program in accounting is the best way in accounting system, for that I disagree with it. Yes the computerized accounting has help in many ways but it does not supersede the manual or the tradition way of accounting. The manual or traditional way of accounting is the process of recording transaction on the paper or in a document in a raw fact. The combination of the two which is the manual and computerized accounting system is the best way of accounting but specializing in the computerized system is not the best way. There are functions that that can be concerned as in effective way of accounting. * COST One of the bigger advantages in the manual accounting is the cost saving compare to computerized accounting. Computerized...
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...------------------------------------------------- ------------------------------------------------- ------------------------------------------------- In Partial Fulfillment To the Requirements in Technical Documentation ------------------------------------------------- Submitted to Associate Professor Domingo, Vivien, DBA Submitted by Edward A. Almerol Zharmaine C. Cruz July 14, 2014 Part 1 PROPOSAL SUMMARY * BS1 General Ledger * Keywords General Ledger System, Income Statement, Balance Sheet, Trial Balance Report, General Ledger Report. * Abstract The General Ledger has been the basic bookkeeping tool of double-entry accounting since the Green Eyeshade days. It records financial transactions as both Credits and Debits in balance sheets, which before the advent of software were bound together in huge volumes like something out of a Dickens novel. BS1 General Ledger from Davis Business Systems brings the General Ledger up to cyber speed with a variety of easy-to-use accounting tools that can track budgets and financial data and generate income statements, balance sheets, and other reports. It's freeware, a good start, accountancy-wise. BS1 General Ledger proves just how much high-quality business software is available for free, though it's also available in a paid version that adds technical support and free updates. However, many businesspeople, entrepreneurs, treasurers, and others will appreciate what the freeware can do for both sides...
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...a) What is accounting? b) What are the main reasons for keeping the accounts for a business? Explain c) Who are the users of the financial information of a company and why? Explain d) What are the advantages and disadvantages of the computerized accounting system? e) List some of the computerized accounting programmes available in the market and discuss why they are preferred. Accounting is the systematic recording, reporting and analysis of financial transactions of a business. The person in charge of accounting is known as an accountant, and this individual is typically required to follow a set of rules and regulation, such as General Accepted Principles. Accounting allows a company to analyze the financial performance of the business, and look at statistics such as net profit b) The main reasons for keeping the accounts for a business: The most important reasons for keeping good records is that it's a legal requirement. By law, you must keep business records: * for five years after they prepared, obtained or the transactions completed, whichever occurs latest. * in English or in a form that we can access and understand in order to work out the amount of tax you are liable to pay. You will have to keep records for longer if you use information from those records in a later tax return- for example, if you claim a loss carried forward from a business activity in an earlier year. Under these circumstances, you must keep the records until the end of any...
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...stream, this keeping of the books Accountants do, has gradually migrated into computerized spreadsheets. Gradually, Accounting systems dedicated to this function were developed and the term Computerized Accounting was born 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 be produced; * No more manual processing of the data- all automatically been posted to the various ledgers/accounts and * Many types of useful reports can be generated for management to make decisions 12.3 NEED AND REQUIREMENTS OF COMPUTERSIED ACCOUNTING The need for computerised accounting arises from advantages of speed, accuracy and lower cost of handling the business transactions. l Numerous Transactions The computerised accounting system is capable of handling large number of transactions with speed and accuracy. l Instant Reporting The computerised accounting system is capable of offering quick and quality reporting because of its speed and accuracy. l Reduction in paper work A manual accounting system requires large physical storage space to keep accounting records/books and vouchers/ documents. The requirement of stationery and...
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...Table of contents No. | Title | Page | 1 | Question 1 | 2-3 | 2 | Question 2 | 4-5 | 3 | Question 3 | 6-7 | 4 | Bibliography | 8 | 5 | CD | 9 | 6 | Turnitin report | 10 | Question 1 Mrs. Sally runs a bakery business, Sweet Delight which caters to both individuals and businesses. However, there are some flaws found in her current sales system that caused a loss of significant amount of money. Hoping that she’s able to improve her cash flow, there are some weaknesses highlighted in her current practice. i) Poor online ordering. Having an online catalogue is beneficial for businesses today. It gives the owner slight edge and greater opportunity against their competitors. Most customer nowadays prefer online catalogue as they can easily scroll the items they wanted without the hassle of going to the stores. Mrs. Sally initiative of developing an online catalogue which shows her products is a very good effort in expanding her sales. However, her online catalogue is not equipped with ordering process. The only way to get her products is by email or telephone. Problems may arise when the customer cannot place their order due to the telephone line is busy or when they cannot reach her after the business hours. This gives the company a bad reputation in terms of customer service experience. They might change to other shops which provide better services and Mrs. Sally will lose her potential and loyal customers. ii) Improper customer orders. Mrs. Sally ways...
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...Today’s modern accounting systems implement basic accounting needs while at the same time offering increased correctness in tracking trends, enabling partnership, and giving quick access to data. Computers run everything from home to work. Computerized solutions offer faster transaction processing and better classification of data while at the same time growing the range of input data that give a clearer and more complete picture of a company’s financial bottom line. Modern accounting systems help company management choose wisely in the use of better resources to increase profits at the same time as identifying cost saving and less spending. Accounting is the foundation of any business big or small. Yesterday many businesses did their accounting by hand. This was a long and problematic job done by those who were trained to do only accounting. Some small businesses still do it today, and this serves them fine. Larger companies have switched to computerized accounting systems today which run faster and are more accurate than manually. They both perform essentially the same thing, and are under the very same principles and concepts with the only differences being in the mechanics (Shanker, 2011). There are many factors facing manual accounting compared to computerized accounting today: speed, cost, and back up. Speed is important in accounting today due to the large companies and their investors. Using today’s computerized accounting systems, processing data, and reports...
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...CONVENTIONAL ACCOUNTING SYSTEM AND INFORMATION TECHNOLOGY: EXPERIENCES IN MY PLACES OF WORK. BEING A SEMINAR PAPER PRESENTATION IN ACCOUNTING AND INFORMATION TECHNOLOGY FOR MASTERS IN ACCOUNTING (MAC) DEPARTMENT OF ACCOUNTING FACULTY OF ADMINISTRATION SCHOOL OF POSTGRADUATE STUDIES AHMADU BELLO UNIVERSITY, ZARIA, NIGERIA BY: KALU NNANNA NWONYUKU JUNE, 2013 CONTENTS 1.1.1 INTRODUCTION 1.2.1 THE MEANING OF ACCOUNTING AND ACCOUNTING PROCESS 1.2.2 THE ROLES AND FUNCTION OF ACCOUNTING INFORMATION 1.2.3 BASIC ELEMENTS OF AN ACCOUNTING INFORMATION 1.2.4 BASIC ACCOUNTING POSTULATES AND PRINCIPLES 1.3.1 MEANING OF INFORMATION TECHNOLOGY 1.3.2 ADVENT OF INFORMATION TECHNOLOGY IN ACCOUNTING SYSTEM 1.3.3. THE IMPORTANCE OF INFORMATION TECHNOLOGY TO ACCOUNTING SYSTEM 1.4.1 INFORMATION TECHNOLOGY USE FOR AN ACCOUNTING SYSTEM 1.4.2 SOFTWARE FOR ACCOUNTING INFORMATION SYSTEM 1.4.3 FACTORS TO CONSIDER WHEN CHOOSING ACCOUNTING SOFTWARE 1.4.4 HOW TO CHECK ACCOUNTING SOFTWARE 1.5.1 MERITS OF COMPUTERIZED ACCOUNTING SYSTEM 1.5.2 DEMERITS/LIMITATION...
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...CHAPTER ONE 1.0 INTRODUCTION Accounting software packages have become common place for many organizations in recording business transactions, preparing financial statements and analyzing operations. Accounting software has freed accountants from the manual recording and presentation of financial data. By using accounting software, financial transactions would be recorded more quickly and accurately at a relatively low cost. Moreover, accounting software packages increased overall operational effectiveness by improving both the quantity and quality of management information available (Collins, 1999; Fisher and Fisher, 2001; and Abu-Musa, 2004). Years ago, when personal computers were just coming into their own, accounting software was relatively simple. Its single function was to automate the task of double-entry accounting and produce a straightforward balance sheet. As computers became more robust and integrated databases standardized, accounting software developers added more functions-including cost accounting, manufacturing resource planning, customer resource management, human resources, and payroll (Jones, 2002). Mattingly (2001) stated that choosing the right accounting software is becoming more difficult as the software market becomes increasingly fragmented. In many cases, more product information makes decision-making more difficult rather than less. The risks of leaping into an expensive purchase decision are hard to assess. Collins (1999) also confirmed...
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...The Effects of Technology on the Accounting Profession Eliot Sherman ACC/340 June 11, 2015 Michael Raponi According to Accounting Web, the next decade will see industries transition to a Cloud-enabled world where work can be accomplished anywhere, anytime. This will especially be true of the accounting profession, according to Intuit, as such tools as Cloud-connected smartphones and tablets will enable firms to provide clients with an "accountant in their pocket" at all times. In the modern age, technology is constantly evolving and this has an effect on every profession, especially accounting. Processes and procedures are becoming less manual and more automated. Accounting begun being all written and having hard copies as the only backup. Systems are becoming more advanced and powerful which allows them to aggregate large amounts of data. As time went on, new software and hardware allow calculations to occur more quickly and allow backup to be more readily accessible. As well, with accounting constantly changing, the standards and regulation overseeing the profession were as well. As well, a lot of companies in the early 2000s when the technology bubble was building, companies such as Enron and WorldCom tried to take advantage of lax audit rules and committed extensive fraud. This constantly requires technology to change to allow for it to be in line with what is required, specifically in relation to audits and GAAP. In this digital age, technology adapts and improves...
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...becoming more global and consumers buying online in greater numbers, the rapid and accurate flow of information is vital to accountants. This is where AIS or Accounting Information Systems come in, this practice was originally handled “in house” by most businesses, but as technology changed and businesses became more web based, software packages from developers such as Microsoft and Oracle are sold to assist businesses with their accounting needs. AIS was developed for the collection, storage, and processing of financial and accounting data. In most organizations A.I.S. are made up of interrelated components that interact to achieve a common goal. Throughout this paper we will look at the history of AIS, why the A.I.S. is important to corporate America, and what future developments are necessary to move ahead with the system History of the AIS In order to understand Accounting Information Systems better it is important to break down what the term really means and why it is so important in modern day accounting. The development of AIS dates all the way back to Babylon, in the year 3600BCE, this is when the oldest known record of any business occurred. It is believed that AIS were used in many other countries before making it’s way to the U.S. Countries such as Greece, China, and Rome are all believed to have used this system during trade activities. A.I.S. were first comprised of someone jotting down notes with a pencil and paper and now years later it has developed into extensive...
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...Swan’s Supplies is a wholesaler of sporting goods equipment for retailers in a local metropolitan area. The company buys sporting goods equipment direct from manufacturers and then resells them to individual retail stores in the regional area. The raw data in Figure illustrate some of the information required for the company’s purchase order system. As you can see, this information is characteristic of accounting purchase order systems but is not well organized. In fact, because of the repeating groups in the right-most columns, it cannot even be stored in a computer system. [pic] .:. Requirements Store this data in a spreadsheet to make it easy to manipulate. Then perform each of the following tasks in turn: 1. Reorganize the data in first normal form and print your spreadsheet. Why is your data in first normal form? 2. Reorganize the data from part 1 into second normal form and print your spreadsheet. Why is your data in second normal form? 3. Reorganize the data from part 2 into third normal form and print your spreadsheet. Why is your data in third normal form? SOLUTION: The raw data is as follows: | | | | |Purchase | | | | | | | |Customer | |Phone | |...
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...De La Salle Lipa College of Business Economics, Accountancy, and Management Accounting Software: Boon or Bane A Term Paper Presented to Dr. Josephine Magbojos CEAS, English Department In partial Fulfillment of the Requirements for Comski2 2014 by Briones, Kristine Norien Resma, Maria Angelica F. Abstract The development of technology brought many changes in the accounting world and the development of accounting software is one of its biggest contributions. Accounting softwares are beneficial for a business and a company for it to produce a financial report faster and easier. The use of different programs for the calculations and reporting made its way to no more manual accounting which is more complicated to do. To maximize the benefits of its uses the advantages and disadvantages of these softwares must be identify before using it. Hence, with proper knowledge of its positive and negative effect, a business or an auditing firm will be able to properly utilize its functions that will then produce financial reports which are essential to the company’s economic decision making. Technology has been an integral part of everyone’s daily lives. Different machineries, gadgets, softwares, and equipment have changed the ways of living of the Filipinos. These things ease the job of a worker, helps a student do home works and research faster, and a mother do household chores. Many developed softwares that are useful for the management of the organization. Like...
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...concerned with development and maintenance of accounting records. It is the "how" of accounting. | Accounting is abstract and theoretical. It is concerned with the "why", in other words the reason or justification for any action that’s implemented. | Bookkeeping is a part of accounting. It is mainly a mechanical aspect of recording, classifying and summarising transactions. | Accounting is a four-stage process of recording, classifying, summarizing and the interpretation of the financial statements. | The process of bookkeeping does not require any analysis. | Accounting uses bookkeeping information to interpret the data and then compiles it into reports to present to management. | It records incoming transactions (received payments from customers, etc.) and outgoing transactions (paying for specific bills on the correct time, etc). | They usually deliver the business results in the form of reports. Management can see whether the company is successful or not and with the help of the analysis they can see where the problems come from in case of negative results. | There are two basic kinds of bookkeeping: single entry bookkeeping and double entry bookkeeping. | The accounting department also does preparations of a company’s budgets and plans loan proposals. | The advantages and disadvantages of computerized accounting system: Advantages | * Faster and efficient in processing of information; * Automatic generation of accounting documents like invoices, cheques and statement...
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...Internal Controls on an Accounting Information System Discussion of Internal Controls that are placed in an Accounting information System In accounting systems, certain controls are needed to ensure that employees are doing their jobs properly and ensure that the system runs properly. These checks are in the best interest of the organization. These controls come in the form of internal and external controls for the system. The internal controls are the checks that are placed in the system my the company's own management and directors. Today more and more companies are moving from the manual accounting systems to computerized accounting information systems. The advantages of a computerized system are increases in the speed and accuracy of processing accounting information. However, as systems become computerized, the internal controls for that system has to be adapted accordingly. This is because computerized systems bring with them certain unique problems that can only be removed or minimized by adapting the present controls and adding new controls. These problems are • In a manual system there is a paper trail for the internal auditor to follow. All records and transactions are kept on paper and so an auditor has clear and documented proof of what has transpired. Computerized systems rarely have a clear paper trail to follow. Since computers do all of the sorting of the information the company rarely sorts the source documents. Also the computer does most of the calculations...
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...……………………………………………………………………………………….3 Critical aspects of Accounting Information Systems………………………………….................3 People…………………………………………………………………………………….3 Procedure and Process Analysis…………………………………………………………4 Data Analysis…………………………………………………………………………….4 Decision Analysis………………………………………………………………………..4 Design…………………………………………………………………………………….5 Importance of Safeguarding Information ………………………………………………………..6 Network Security………………………. ……………………………………………………….6 Advantages of Accounting Information Systems..……………………………………................7 Disadvantages of Accounting Information Systems……………………………………………..7 Conclusion………………………………………..………………………………………………8 References ……………………………………………………………………………………….9 Introduction The Accounting information systems network is an interactive human interface that enables organizations to make key business decisions. These decisions include strategies, goals and cost saving procedures. Companies must increasingly rely on evolving technology to help manage this data. Technology serves the Accounting information systems as a whole to help an organization and top management make informative decisions. The design of the technology in such a way that it accommodates each critical aspect of the organization - people, procedure and processes analysis, data analysis, decision analysis, and design - is paramount. This paper will look at accounting information system from a macro point of view and discuss...
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