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Categories of accounting software11/25/2023 Up-to-Date Information- In the Computerised Accounting Systems, whenever the new accounting data is entered and stored, the existing accounting records automatically gets updated. Also, the Computerised Accounting Systems overcome the limitation of Manual Accounting Systems such as tiredness, boredom or fatigue, etc., thereby enhances the degree of reliability.Ĥ. Reliability- As the Computerised Accounting Systems is well-equipped in performing repetitive operations, so it is comparatively more reliable to perform the operations than the manual system. This increases the possibility of accounting errors.ģ. On the other hand, in Manual Accounting Systems, posting of same data is required a numerous times to prepare different types of accounting reports. Accuracy- In Computerised Accounting Systems, the possibility of errors is minimised or reduced as the primary accounting data is entered only once for preparing various accounting reports and for subsequent usage and processes. The accounting data is processed comparatively faster through the Computerised Accounting Systems than it can be done through the manual efforts.Ģ. Speed- The speed of a computer is very high and takes very less time in performing various difficult operations. The following are the various advantages of the Computerised Accounting Systems over the Manual Accounting Systems.ġ. In the Computerised Accounting Systems, to create and store the opening account balances in the database, year-end process is used. However, in Computerised Accounting System, journal vouchers are prepared and stored to follow the principles of cost matching revenue, but there is nothing like passing adjusting entries for error and rectification.Īfter preparing financial reports, the accountants prepare books for the following accounting period, which is done by posting of closing and reversing the closing Journal entries. The preparation of financial statements hypotheses the availability of Trial Balance under the Manual System of Accounting. Thus, Journal and vouchers are prepared and stored to follow the principles of cost matching revenue. In Computerised Accounting Systems, no such adjusting entries for errors and rectification are made. So, under Manual Accounting System, these entries are made to stick to the principles of cost matching revenue. In order to produce ledger accounts in Computerised Accounting Systems, the stored data is processed to appear as classified, such that no data is duplicated.Īdjusting entries are recorded to match the expenses and revenues generated of the accounting period. In Manual Accounting Systems, transactions recorded in the books of original entry are further classified by posting into ledger accounts. Thus, the generation of ledger accounts is not a necessary condition. In Computerised Accounting Systems, the originally stored transactions data are processed to give out the list of balances of various accounts to be finally shown in the Trial Balance report. Consequently, the generation of ledger accounts becomes a necessary condition. In Computerised Accounting Systems, the data of such transactions is stored in a well designed database.īy ascertaining the balance of various accounts, transactions are summarised to produce Trial Balance in the Manual Accounting Systems. In Manual Accounting Systems, the recording of financial transactions is done through books of original entries, i.e. The identification of transactions in computerised accounting is also based on the application of accounting principles The identification of transactions is based on the application of the accounting principles.
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