Preview

The Use of Computers in Accounting

Good Essays
Open Document
Open Document
437 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Use of Computers in Accounting
USE OF COMPUTERS IN ACCOUNTING
A computer is a set of electronic device that can systematically and sequentially follow a set of instructions called a program to perform high-speed arithmetic and logical operations on data.
Because of the rapid changes in finances and its related fields, accurate record keeping is critical. Computerizing a business’ tasks of accounting procedures, increases efficiency. With a computer and its appropriate software, one can request and receive an in house balance sheet, an income statement, cash flow and statements of affairs and other accounting reports within a short time: hence an increase in productivity.
Let’s take time to briefly see the role computers are playing in the field of accounting, changing some of the things that were manually done and facilitating accounting data processing.

A. Spreadsheets
Electronic Spreadsheets allow you to do anything that you would normally do with a calculator, pencil and columnar scratch pad. A typical integrated double entry accounting spreadsheet system will contain some of the following components: general ledger, inventory levels, order entry, payroll, time, and billing etc...
B. General Ledger
Electronic General Ledgers are labor saving device for the preparation of financial statements and for establishing multiple income and cost entries. It takes charge of secondary postings.
C. Inventory Control
Electronic Inventory Control module has multiple functions, which includes tracking inventory for both costing and tax purposes, aid managers in controlling purchasing (and the overall level of expenditure) and minimizing the investment in inventory (and subsequent loss of cash flow). It is integrated with the general ledger so it can automatically set aside the correct amount for processing further.
D. Accounts Receivable
Electronic Accounts receivable can get your bills out the same day you perform a service. Electronic accounts receivable module can prepares invoices for
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Kudler Fine Foods Case Study
    • 804 Words
    • 4 Pages

    Kudler Fine Foods Case Study

    A good accounting information system (AIS) will help create, maintain, and distribute the financial reports as well as perform tasks in payroll, accounts receivable, accounts payable, inventory, and budgeting (Bagranoff, Simkin, & Norman, 2010). Management will be able to set up controls in the system allowing staff to have access to what is necessary and appropriate for their job. They will be able to call up and modify this information electronically without searching or filling out new paperwork. Data entry will be mainstreamed, allowing for less key strokes, and integration of information. This will allow for better accuracy in accounting and accounts will be able to be managed more efficiently, including processing of bi-weekly payroll. Payroll will then be sent directly to processing and reports to the correct managers. Accounts receivable will be able to track when customers use the POS system and update the sales information. Accounts payable will track when a vendor payment is due, allowing for payment processing, and appropriate management and accounting reports. The inventory system will be more accurate saving Kudler time and…

    • 804 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Case Study
    • 625 Words
    • 3 Pages

    Case Study

    Accounting today is much more complex and difficult to understand than it has been in the past. Due to the increasing complexity Accounting Information Systems have been created to alleviate some of the pressures facing accountants. According to Frederick Jones and Dasaratha Rama (2006), Enterprise Resource Planning (ERP) systems are moving businesses from the functional approach to an integrated approach for managing transactions (p.684). Having knowledge and experience with the technological advances will help the accountant become more successful. Companies, such as CBU from the case study, must be able to effectively use technology to their advantage if they want to be successful in the future. The accounting staff of CBU must be able to develop more timely and effective system controls for future financial statement purposes and inventory audits.…

    • 625 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Riordan Manufacturing Hardware and Software Selection
    • 932 Words
    • 4 Pages

    Riordan Manufacturing Hardware and Software Selection

    There is a necessity to have either hardware or software to integrate the accounting information into an automated system for viewing by the proper individuals. Below, Learning Team A will show who needs to access this information, what controls will be implemented, the type of reports to be generated from these hardware or software and importantly what type of information will be available through corporate Intranet and the Internet. Having the proper hardware and software integrating Riordan's data into automated systems will make life easier for those involved with all the accounting cycles, especially accounts receivable.…

    • 932 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Acc 340 Wk 1 Individual
    • 823 Words
    • 4 Pages

    Acc 340 Wk 1 Individual

    Accounting technology is not new, and has been a part of calculating and tracking numbers throughout time. From Leonardo da Vinci who designed a device he labeled the “Codex Madrid” number machine to Blaise Pascal who invented the first early calculator to William Burroughs who created the first adding machine, those who specialized in numbers have sought ways of making the tasks of their profession or hobby much simpler. As time passed, more creations emerged to help accountants perform their expertise more accurately and faster. The first computer was built midway through the twentieth century. For the nearly 50 years that followed, huge computers designed to perform the simple task of calculating mathematical equations were eventually scaled down to fit on top of desks in consumers’ homes and offices. The world of accounting went from manually inputting data into a ledger to using electronic spreadsheets that eliminated the need for ledgers, calculators, pencils, and adding machines. Out with the hardcopy and in with the software.…

    • 823 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Effects of Technology on the Accounting Profession
    • 427 Words
    • 2 Pages

    Effects of Technology on the Accounting Profession

    New technology in information systems have bought significant changes in accounting profession, practices and processes. It has increased the efficiency and accuracy in accounting and has speed up the process for manual accounting tasks, but also improved security of accounting data and increased transparency. Large organizations and multinationals are changing over to this new information systems and technologies to carry out their accounting tasks on global basis. This information system has led to standardization not only among the different divisions, locations and offices of a single organization, but also on a global basis.…

    • 427 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    D1-Analyze the Circumstances Under Which a Business Would Adopt a Computerized Accounting System Instead of a Manual One.
    • 540 Words
    • 3 Pages

    D1-Analyze the Circumstances Under Which a Business Would Adopt a Computerized Accounting System Instead of a Manual One.

    A business may adopt computerise accounting system as the cost of using a manual one are high and less efficient. The business can easily set up the computerise system at a lower cost and this will cut the costs of the business.…

    • 540 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    The Effects of Technology on the Accounting Profession Paper
    • 555 Words
    • 3 Pages

    The Effects of Technology on the Accounting Profession Paper

    New developments in information systems have bought significant changes in accounting profession, practices and processes. It has not only increased the efficiency and accuracy in accounting and has speed up the process for cumbersome and long accounting tasks, but also improved security of accounting data and increased transparency. Large organizations and multinationals are making increasing use of new information systems and technologies to carry out their accounting tasks on global basis. These information systems has led to a great degree of standardization not only among the different divisions, locations and offices of a single organization, but also on a global basis.…

    • 555 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    How Technology Has Changed the Accounting Profession
    • 3024 Words
    • 13 Pages

    How Technology Has Changed the Accounting Profession

    Thirty years ago, most financial accounting was done manually, leading to a great deal of paperwork. Currently, most accounting information is recorded via computers and wide area networks (Journal of Accountancy, 1994a). Technology has certainly changed the face of accounting over the years. While it is unclear whether technology’s impact on accounting has been positive or negative, it is clear that technology has drastically changed the accounting profession. Often a technological advance may be an asset to a business, but a liability to the firm’s accountant. For example, information can be provided in a timely and more accurate manner, but at the price of confidentiality. Some of the impacts of technology are neither positive or negative; they are simply changes. So in essence, the impacts of technology on accounting have been positive, negative, and neutral, but each impact results in a demand on the profession to conform to the changes.…

    • 3024 Words
    • 13 Pages
    Powerful Essays
    Read More
  • Better Essays

    Effectiveness of Web-Based Training
    • 5095 Words
    • 21 Pages

    Effectiveness of Web-Based Training

    Organizations of all sizes have some dependence on Excel and manual reports for record keeping. Record keeping with the help of software has helped the companies to manage the record in the much more efficient manner and has also helped in decision making.…

    • 5095 Words
    • 21 Pages
    Better Essays
    Read More
  • Powerful Essays

    Accounting Systems, Internal Controls, and Ethics
    • 28187 Words
    • 113 Pages

    Accounting Systems, Internal Controls, and Ethics

    Cushing B, Romney M., 1990, Chapter 1: Accounting Information Systems: An Overview”, Accounting Information Systems: A Comprehensive Approach, Addison – Wesley Publishing Company Inc, USA…

    • 28187 Words
    • 113 Pages
    Powerful Essays
    Read More
  • Better Essays

    Manual vs Computerized Accounting
    • 1216 Words
    • 4 Pages

    Manual vs Computerized Accounting

    Ever since Lucas Pacioli wrote about and spread the knowledge of double entry accounting in his “Summa di Arithemetica” in 1494, modern manual accounting was born (Hendrickson, 2007), though manual accounting has existed in many forms since ancient times. In contrast, computerized accounting systems are a more modern invention, as the first computer was invented between 1943 and 1946 (“Great Events in Accounting & Business History”, (n.d.)) and Arthur Anderson first computerized the payroll of General Electric in 1953 (“Great Events in Accounting & Business History”, (n.d.)). Powerful personal computers were not readily available to the average person until the 1980’s and 1990’s.…

    • 1216 Words
    • 4 Pages
    Better Essays
    Read More
  • Good Essays

    Technology Has Made the Accounting Process Easier. Do You Agree or Disagree with This Statement? Discuss Your Answer with Relevant Justification.
    • 1216 Words
    • 5 Pages

    Technology Has Made the Accounting Process Easier. Do You Agree or Disagree with This Statement? Discuss Your Answer with Relevant Justification.

    I agree with the statement “Technology has made the Accounting process easier”. The advancement of information technology and the implementation of user friendly computer system have transformed most processes in the accounting cycle into an automated process which improves the accuracy, speed, efficiency and the convenience of accounting procedures. Accounting software such as UBS and Peachtree is developed with the development of information technologies that make the Accounting process easier. Manual accounting with paper and pen is difficult to find these days with the impact of technology. Companies can now capture, process, store, and transmit data with the help of computers. Whereas data collections and processing were performed manually in historical systems, on-line collection and processing of data are performed by computerized systems. The basic principles of double entry remain the same in computerized or manual accounting system but computerized accounting system has certain significant advantages over the manual accounting system.…

    • 1216 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Defense About Payroll System
    • 667 Words
    • 3 Pages

    Defense About Payroll System

    As computer technology changes at such fast phase, many businesses sectors try to cope up by upgrading computer system constantly in order to stay competitive. The multi function ability of technology for its advance system is also an important factor for a company to use software. It makes efficient use of the advance technology and has ambition to discover more. Computers have the great impact on the profession of accounting. With the rapid growth of technology today, there is no doubt that computer will become a common asset in all profession.…

    • 667 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    automated payroll system
    • 926 Words
    • 4 Pages

    automated payroll system

    Computers have the great impact on the profession of accounting. With the rapid growth of technology today, there is no doubt that computer will become a common asset in all…

    • 926 Words
    • 4 Pages
    Good Essays
    Read More
  • Better Essays

    It Is Often Claimed That the Process of Computerising Accounting Information Systems (Ais) and Telecommunicating Accounting Information over the Web Enhances the Accounting Functions in Business Organisations Operating
    • 1334 Words
    • 6 Pages

    It Is Often Claimed That the Process of Computerising Accounting Information Systems (Ais) and Telecommunicating Accounting Information over the Web Enhances the Accounting Functions in Business Organisations Operating

    Problem of increasing the profitability of the company, staff performance and creating an optimal governance structure is important for every manager. Decisions made under uncertainty and risks are often forces them to keep under control the various aspects of financial-economic activity. All this activity is displayed in the larger numbers of documents that contains diverse amount of information. If everything is properly treated and systematized it is away to guarantee the effective management. “ “Technology is rapidly changing the nature of the work of most accountants and auditors”(Gellinas, Dull, Wheeler 2012: 2) Implementation of accounting packages and programs allows automating not only accounting, but also clean up the supply and the distribution of goods, track contacts, quickly calculate wages and spend less time on producing reports. In this assignment I will discuss the pros and cons of accounting information system and telecommunicating accounting information over the web and provide certain evidence. Also security concerns are going to be discussed and a number of solutions will be provided.…

    • 1334 Words
    • 6 Pages
    Better Essays
    Read More

Related Topics