...The operation of an accounting system has three basic phases: input, processing and output. The inputs are the journals which is the chronological record of transactions which are recorded as they occur on numerous source documents such as sales invoices, purchase invoices etc. Periodically, these journals are posted to general ledger, which constitute the processing phase of the system. Financial statements are prepared from the data in general leger. This is the output. Thus an accounting system is essential to transform data into useful accounting information which can be used by management for decision making and also for evaluation by parties outside the entity. Therefore, development of a dependable accounting system is vital for any business. As a business grows, the review of the accounting system may show that it needs to be revised or even replaced to accommodate a larger volume of transactions. Such a scenario has happened to Justin’s Gourmet Foods Pty Ltd. The company currently uses a manual accounting system. The manual accounting system implies that employees perform the whole accounting cycle manually on a periodic basis: they calculate trial balances, journalize transactions, and prepare financial statement reports and other routines. This system is manageable when a business is small and has a limited number of transactions. But when there is a large volume of transactions, the repetitive nature of the task makes manual accounting chaotic, very time consuming...
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...Computerized Accounting System Threats in Malaysian Public Services Mahlindayu binti Tarmidi1, Azwan Abdul Rashid2, Mohmad Sakarnor bin Deris3, Rusli Abdul Roni4 1Department of Accounting. College of Business Management and Accounting, Universiti Tenaga Nasional, Bandar Muadzam Shah. 26700 Pahang 4Deprtment of Business and Accounting, College of Foundation and General Studies, Universiti Tenaga Nasional, Bandar Muadzam Shah. 26700 Pahang [pic] Abstract Numbers of incidents pertaining data errors, system breach, violation of internal control and manipulation of financial information had raised the organization attention and concern. Organizations are consequently more aware of the security and integrity issues in regards of the computerized accounting system and the need to take appropriate action. This research is to investigate the security threats issues in computerized accounting system in Malaysian public services. Through questionnaires to 500 CAIS user in the Jabatan Akauntan Negara Malaysia (Accountant General Department), the study findings show the users perception of the current state of threats faced by the system. Though most of the listed threats are perceived to be rarely happen, but there are group of people indicates those incidents still taken place. Hence, this empirical evidence may enable the public services department to evaluate their computerized accounting system security, and begin to properly pursue effective strategies to improve quality and lower...
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...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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...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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...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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...------------------------------------------------- ------------------------------------------------- ------------------------------------------------- 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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...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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...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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...both manual and computerized accounting information systems? Home Work Hour aims to provide quality study notes and tutorials to the students of ACC 340 Week 1 Discussion Question 1 in order to ace their studies. ACC 340 WEEK 1 DISCUSSION QUESTION 1 To purchase this visit here: http://www.nerdypupil.com/product/acc-340-week-1-discussion-question-1/ Contact us at: nerdypupil@gmail.com ACC 340 WEEK 1 DISCUSSION QUESTION 1 Why do some organizations continue to use both manual and computerized accounting information systems? Home Work Hour aims to provide quality study notes and tutorials to the students of ACC 340 Week 1 Discussion Question 1 in order to ace their studies. ACC 340 WEEK 1 DISCUSSION QUESTION 1 To purchase this visit here: http://www.nerdypupil.com/product/acc-340-week-1-discussion-question-1/ Contact us at: nerdypupil@gmail.com ACC 340 WEEK 1 DISCUSSION QUESTION 1 Why do some organizations continue to use both manual and computerized accounting information systems? Home Work Hour aims to provide quality study notes and tutorials to the students of ACC 340 Week 1 Discussion Question 1 in order to ace their studies. ACC 340 WEEK 1 DISCUSSION QUESTION 1 To purchase this visit here: http://www.nerdypupil.com/product/acc-340-week-1-discussion-question-1/ Contact us at: nerdypupil@gmail.com ACC 340 WEEK 1 DISCUSSION QUESTION 1 Why do some organizations continue to use both manual and computerized accounting information systems? Home Work Hour...
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...Effects of Technology on the Accounting Profession University of Phoenix ACC/340 Accounting Information Systems Effects of Technology on the Accounting Profession Businesses have become more competitive, consumers are more informed, and technology has changed the way the world communicates. Information technology (IT) and the resulting ‘information age’ are continuously impacting every facet of accounting. (Bagranoff, Simkin, & Strand-Norman, 2006) This paper will examine how accounting information systems (AIS) are bringing about changes within the accounting profession. Additionally, a variety of technologies and how they affect accounting practices at Exclusively Yours Salon will be discussed. Accounting Information Systems and the Accounting Profession Today’s business environment is marked by increased competition and the need for better and faster information for decision making. According to Bagranoff, Simkin, and Strand-Norman, 2006: Because IT now captures transactions, AISs can produce financial statements almost in real time. Of course, some of the adjustments that accountants must make to the records are not done minute-by-minute, but a business can certainly track sales and many of its expenses continually. (p. 15) Additionally, large amounts of accounting records are increasingly presented only in an electronic fashion. Companies are reporting their financial outcome quarterly and an increasing number of companies are transferring their financial...
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...business takes from the beginning of a payroll period to the end. The steps usually begin with the creation of a payroll system. Following that, hours, pay rate, withholding deductions both required and voluntary, as well as gross pay and take home pay. Calculating these values is very important, and must be done individually per employee. Businesses may do this manually or using a computerized accounting system to do so for them. Regardless of the method used though, the business also must have solid internal controls for the payroll category. These include two main controls, which are, controls for efficiency and controls to safeguard payroll disbursements. Having incorrect records poses one of the greatest risks that a company faces when it comes to accounting for payroll. This is because it is almost like a domino effect in that when one inaccuracy occurs, several more subsequently result. Manual entries are not necessarily considered to be efficient, because here the risk of error is greater, than the risk using a computerized system. The computerized system creates and stores records, documents, and an array of information, all in one place, and computerized systems are equipped with tools that make calculations, write checks, print checks, etc., all virtually and more efficiently than manually doing so for each employee. However, computerized systems too, have faults and are by no means error free all the time. Thus, the error imposed by inaccurate records. Mitigate risks...
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...Effects of Technology on the Accounting Advances in technology clearly have affected many ambiguous processes to simplify, efficiency, record or easy storage, and create accuracy of any manual process. The accounting profession is one of many which have clearly changed its innovative way of conducting and processing systematically, but its principles have stayed the same. Information systems (IS) or computerized technologies purpose is to create efficiencies and simplify the manner in which data is collected, stored, and processed. It also provides the corporation with easy access to reports, accuracy, and historical data. In today’s world of technology accounting process for any organization is easily captured in a computerized system. Organizations maintain information of sales, supplies purchased, accounts receivables or billing process, and accounts payable on computerized systems. This allows the sharing of data, whereas in a manual process the accountant would have to retrieve the information from each department and maintain records in a spreadsheet and manually calculating the totals. This manual process was tedious, time consuming, and had many gaps for errors. In our current technologies there are software applications that provide the accountant with the necessary tools to obtain the data, calculate the totals and generate reports. So how does the effects of technology effect accounting? It has a positive effect because it simplifies the process but adds new requirements...
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...the inventory, and receive payment. * Valuation – Keep accuracy for the value. 2. List the key internal control weaknesses that were evident in the Huntington unit’s operations. * Ineffective controls of physically counting * Sales rep (Woody) involved in physically counting and took the count sheets for both team to the sales office, which mean offered him chances to manipulate the numbers * Ineffective accounting procedures that do not tie recorded purchases to receiving data * The sales reps often jotted the details of a transaction on a piece of scrap paper and entered information later either by themselves or others. * Unrestricted access to the computerized accounting system * Unit’s sales manager, two sales reps and bookkeeper had unrestricted access to the accounting system. * Lack of separation of duties * Sales reps had direct access to the inventory storage areas * Sales reps can load and delivered customer orders themselves * Sales reps had unrestricted access to the computerized accounting system * Sales reps involved physical counting * Receptionist doubled as a secretary * Lack of physical safeguards * No physical safeguards for inventory. 3. Develop one or more control policies or procedures to alleviate the control weaknesses you identified in responding to Question 2. * Ineffective controls of physically counting * Sales rep should not involve in physically counting. And the counting...
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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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