What can you do if you earn a certificate in computerized accounting? There are actually several different career paths. These include:. These are often entry-level roles with a company. Candidates with advanced skills and more experience can advance to other positions.
You may also qualify for other office jobs. Other future advanced degrees may open up different opportunities. Salaries for those working in bookkeeping or related work are often tied to experience. Another option is to start your own bookkeeping or accounting business. Self-employment can come with highly variable income. It can still be a rewarding experience if you have an entrepreneurial spirit. Starting your own business requires that you are a self-starter and willing to work hard to gain business accounts.
Businesses and employees alike can realize many advantages of computerized accounting. Businesses find the need for skilled employees who understand accounting software for efficiency, reliability, and accuracy. Computerized accounting professionals are needed in all modern businesses.
Businesses benefit the most from computerized processes when they hire people with the right skills. Not sure a certificate computerized accounting is the right choice for you? Discover our other programs. The right degree is out there. This site uses Akismet to reduce spam. As you already know, when you get audited, you must verify all transactions that occurred in your business.
General Accepted Accounting Principles GAAP allow for certain choices of different accounting methods for depreciation and inventory management. If a financial statement from one company that was prepared differently from other companies in the industry, or even prepared differently from previous statements, it is likely that the users will not be able to compare the statements among companies and over time. Comparability adds a degree of transparency to financial statements by allowing comparisons over time and among entities.
This indicates that comparable financial statements are not necessarily uniform, but merely allow suitable comparisons.
Derrell V. The accounts should always show a true and fair view of financial statements. According to Turner , neutrality is the demand that accounting information should not be selected to benefit one class and neglect to other. Reliable information is verifiable, neutral and has representative faithfulness. Relevance is also a very important characteristic of quality.
Frankwood indicates that financial information is relevant if it is capable of making a difference in decisions made by helping users to form predictions about the outcomes of the past, present and future events either to confirm or correct prior expectations.
Comparability is another characteristic of quality information. Frankwood also stresses that users must be able to compare the financial statements of the enterprise over time in order to identify trends in its financial position and performance. Computerized accounting systems have been credited for their quick processing speed and large storage capacity. Using computerized accounting system ensures up-to-date account balances are available any time for management to make quick decisions Lancouch, Quality of financial reports is assured with computerized accounting system as compared to manual systems.
The method of inputting and processing data is sophisticated thus accuracy of data is improved. This means that financial reports will bear minimum errors. Computerized system will foster accessibility and faster transformation of information stored in computers, hence financial reports can easily be accessed through online system without delay and timely decision making Kwarijuka, A computerized accounting system is a delivery system of accounting information as providing reliable accounting information to users.
As the properties of information continue to change, the accounting system should become flexible enough to meet the need of users. Automated generation of accounting document like invoices, cheques and statement of accounting with the larger reduction in the cost of hardware and software and availability of user-friendly accounting software package with relative cheap maintenance.
In order to promote quality of financial reporting, there is need of feedback regarding the way in which user determines quality Mangiameli et al, Financial reports need provide feedback in order to prepare good reports enable constantly updating the system.
This chapter focuses on the description of the procedures that was employed in the study. Mugenda and Mugenda, state that this chapter should specify the research design, the study population or the area in which the study were conducted, the sampling design, the sample size, data sources, data collection instruments and the validity and reliability of the data collection instruments. Descriptive survey designs were used in preliminary and exploratory studies to allow researchers to gather information, summarize, present and interpret for the purpose of clarification.
The choice of the descriptive survey research design is based on the fact that in the study, the research is interested on the state of affairs already existing in the field and no variable were manipulated.
This study therefore enables to generalize the findings to a larger population. The main focus of this study was quantitative. However some qualitative approach was used in order to gain a better understanding and possibly enable a better and more insightful interpretation of the results from the quantitative study.
Table 3. Besides, the simple random sampling methods were used to select a sample of respondents without any bias from the accessible population. Each party of the target population in this case has an equal opportunity of independence as far as expression of their opinions is concerned.
Under purposive sampling technique, the researchers purposely choose who, in their opinion are thought to be relevant to the research topic. In this case, the judgment of the researcher was more important than obtaining a probability sample. The process of sampling in this case involved was purposive identification of the respondents.
Primary data was collected from the respondents that were chosen from Stanbic Bank Mbarara Branch 3. These other sources of data Literature review major used to back up the arguments and findings in chapter four and five.
The secondary data were obtained from Stanbic Bank journals, text books, brochures, library and internet information relating to computerized accounting and financial reporting.
Where as the primary source of data were used in the questionnaire, to collect more information and clarify on some information, it majorly constituted structured and open-ended questions focusing on the research objectives and control questions to check correctness and consistency. The secondary data source involves were mainly the organization financial and management reports. This record inspection was carried out in relevance to the study objectives.
Besides, the study employ the use of interviews, which involve talking or interacting face to face with the respondents sampled for the study and finding out issues concerning the research objectives 3. This was one of the major instruments that were used to collect data.
The researcher used both open and closed questions which was required specific answers. Questions were printed in clear and simple language possible for the respondents to understand. The respondents were selected the correct options by ticking the correct answers. Here, questions were determined before hand while others arise during the course of the conversation.
The interviews were done on individual-oriented basis to allow expression of personal view points. The researcher used face to face interviews because of the following reasons; provision of first hand information, rich data collection, cost effective, speedy and ability to clarify the questions, clear doubts and could add new questions where it was necessary.
These were designed in a way that more specific and truthful answers were got. These help to capture information, not provided by the questionnaires. This method was preferred because of its flexibility and ability to provide new ideas on the subject Kothri, The method used document checklists and guides to get views from other writers which were instrumental especially in comparison analysis and literature review.
The researcher leaves the questionnaires with the respondents and picks them up later. Each questionnaire was coded and only the researcher knows which person was responded.
The coding technique only was used for the purpose of matching returned, completed questionnaires with those delivered to the respondents. The researcher was framed research questions objectively so as to widen the scope of the study and maintain confidence in the research process. The researcher was sensitive of social and cultural differences and considers conflicting interests.
Lastly the researcher endeavored to report all findings completely, and objectively with full information on methodologies to allow research work to be assessed by colleagues and to increase public confidence and reliability. The collected data were analyzed using quantitative analysis which majorly involved six major activities namely, data preparation, counting, grouping, and relating, predicting and statistical testing.
Data preparation involved all forms of manipulations that were necessary for preparing data for further processing e. Also data collected was mostly quantitative, and it was analyzed by descriptive analysis techniques.
The descriptive statistical tools such as SPSS will help the researcher to describe the data and determine the extent used. Content analysis was also used to analyze qualitative data. The findings were presented using tables and charts, percentages, means and other central tendencies.
Tables were used to summarize responses for further analysis and facilitate comparison. For this study, the researcher was interested in establishing the relationship between computerized accounting and financial reporting of deposit taking Stanbic Bank in Mbarara Municipality.
These were generated quantitative reports through tabulations, percentages, and measures of central tendency. Some Stanbic Bank staff denied the researcher information as they failed to believe that the research was purely academic. As a result, the researcher was able to get information from such Stanbic Bank.
Poor time management by employees of the Stanbic Bank also hindered the data collection process. Some employees came late as they had other things to besides working at the Stanbic Bank office, others did not keep appointments leading to failure to get responses from them in the end. Resource constraints in form of human, time and technical but the researcher worked hard for the success of the research studied. Inadequate cooperation of respondents in form of refusal and delays in completing questionnaires.
Respondents felt insecure to reveal that they were not empowered but the researcher assured them that their responses were treated with much confidentiality.
However, as far as costs are concerned, the researcher has to acquire soft loans from friends and relatives so as to meet the costs of the research. Time required to carry out the research: the time required to carry out the research were not adequate, given unpredicted and uncertain happenings that may hinder timeliness such as delays and bad weather which the researcher definitely has to bare with and try as much as possible to work longer hour in order to compensate for the lost time.
Uncooperative respondents: as usual, not every respondent during research is completely willing to cooperate positively towards the demands of the researcher, some are even hostile. However, giving up on the respondent only hinder the acquisition of the necessary information, so the researcher not get tired as far as wooing the respondents to cooperate is concerned. The chapter also presents the biographic characteristics of respondents.
In the presentation of findings, tables and figures will be constructed using frequencies and percentages to describe and analyze the findings to draw meaningful conclusions. Of the 20 questionnaires which were distributed, the researcher received back 15 questionnaires. The research was analyzed according to the number of questionnaires which were returned. The biographic data of respondents which is in the research study is presented as below.
Socio-cultural expectations of the society reason more males engage in financial and calculative businesses or institutions than females. These argue that females tend not to prefer offering science as well as mathematical education they are thus left for men hence men execute what they have acquired in class by serving or working in such financial institution.
To the researcher, females were fewer than males because they prefer largely offering arts in higher institutions of and therefore have largely ended as social workers, secretaries to mention but a few From the study findings, the study population was mainly composed of people from different age groups. This thus explains why those falling between 15 — 30 years and many compared to the rest. Hence those over two years were more knowledgeable than those below two years.
As indicated from the above table, among the background characteristics of respondents that were noted by the researcher was the position of responsibility, respondents held in the area of study. Slightly less than a half of the total number of respondents From the study findings, Slightly over thirty three point three percent Table 2: Responses on whether, the company uses a computerized accounting system for its operations.
This positive response is of great significance to the study since it enabled deeper research into the topic in question. Table 3: Responses showing what major tasks are performed by the computerized accounting system. Table 4: Responses, showing the financial statements reports generated by the computerized accounting system. All the financial statements named above rank highly in percentages of interviewee responses.
This reveals that the stated financial statement Statement of comprehensive income, Statement of financial position, Statement of cash flows and the Income statement , are the most commonly generated financial reports produced by the system at the bank. As seen above, the study findings on the use of a computerised accounting system and data entry, processing and reporting are paramount. In the first case, we can reveal that the case study actually employs the use of a computerised accounting system for its operations as per the findings of the research and the tasks performed by the system among other found out include those summarized in table 4 above.
While the system performs several tasks in the bank, the end results zeroed to financial reports generated by the system as shown in table 4 above. Table 5. Findings indicate that This implies that there is actually a computerized accounting system in Stanbic Bank. This implies that majority of the employees have attained training in computerized accounting.
The largest number of respondents selected at Stanbic Bank agreed that there is timely information and the implication is that timely decisions are made as a result. It can also be noted from the table above that the largest number of respondents selected at Stanbic Bank agreed that the quality of financial reports has actually been improved with the introduction of a computerized accounting system.
Table 9: Showing whether Stanbic Bank has qualified staff in dealing with computerized accounting system. Table 9 reveals that The impression reflected is that most of the staff at Stanbic Bank is computer literate. Table Showing whether the computerized accounting system maintains error free records.
Findings as per table 10 reveals that According to the ratios of the respondents, one can conclude that the Computerized accounting system being used at Stanbic Bank is accounting Stanbic Bank and perfect.
Table Showing whether computerized accounting has eased the transaction processing in Stanbic Bank. Findings from the above table11 revealed that None of the respondents that were interviewed indicated was not sure, disagreed or strongly disagreed. This implies that high levels of efficiency and effectiveness are achieved with the accounting system. This implies that computer input errors are not so common in the system since most of the workers are experienced with the system.
Table Showing whether the expected benefits obtained from applying a computerized accounting system are greater than the cost of obtaining it. Table Showing whether Administration can access daily reports on activities in a computerized accounting system.
Table 14 revealed that Because the biggest percentage agreed, this implies that report generation and production concerns in stanbic bank were solved with the introduction of the computerized accounting system. Table Showing whether stanbic bank can measure the performance of its staff in the light of a computerized accounting system. Only 6. Looking at the outcome, the biggest percent contend that staff performance appraisal can be done in light with the computerized accounting system and this may be used to improve on the efficiency of employees.
Table Showing whether the computerized accounting system provides enough information for internal and external control. Only This result indicates that the computerized accounting system has enhanced efficiency in work flows and is also flexible to the users. Table Showing whether the computerized accounting system provides easy storage, reference and access to information. This implies that costs associated with manual storage have been minimized in stanbic bank with the introduction of the computerized accounting system.
Table Showing whether computerized accounting system has simplified most of the accounting requirements of Stanbic Bank. This implies that there is proper accountability for the activities of Stanbic Bank. However, among the several advantages pointed out, those shown above are the most prominent as reflected by their high percentage responses. It is therefore clear that the system actually performs its operations very well as far as auditing, balancing, communication, user friendliness, speed and the time saving factor as per the high percentage of response on these factors shown in the table thus guaranteeing effectiveness and efficiency of business operations.
Table Responses, on what the cons of a computerized accounting system are. It is also important to note that there were not really many disadvantages revealed by the research as shown on the table above. Table Responses on preferences between manual computerised accounting systems. This is seen in the percentage differences shown in table 4. This shows that the use of a computerized accounting system is much more effective and efficient as compare to the manual accounting option, as far as business operation, running, management and reporting is concerned.
Much as the respondents stated their independent preferences in table 20 above, the researcher went forward to find out the reasons for the preference chosen above. Eventually, computerized accounting became the most outstanding option and the reasons for its preference as per response, are shown in table 23 below. Table Responses on reasons for preference of the option chosen in table 20 above.
Table Showing findings on what the qualities of financial reports generated by a computerized accounting system are. This shows that the system is not only accurate as far as calculations of figure that appear in the reports are concerned but is also produces trustworthy results and can not be manipulated when it comes to reporting. It is also important to note that the aspects of materiality, consistency and reliability as pointed out above, among other qualities of reports generated through computerized accounting is concerned, are the major weaknesses of a manual accounting system and it is the reason as to why financial reports generated in a computerized manner are much more preferred as compared to those generated the manual way, which is actually an outdated system of operation.
Source: Primary Data In order to find out whether the respondents have access to financial reports, the researcher deemed it necessary to find out how often they get access to these reports. Table Showing findings on whether transactions pass unauthorized and why. It is right from the beginning point of a single transaction that a company will either make a gain or a loss that eventually has to appear in the periodic financial statements.
In this case, every company treats their chain of transaction differently and with this factor in question, the researcher deemed it necessary to find out the authority of transactions in the case study where respondents were meant give their independent opinions. The reasons given for this option all zeroed to one conclusion that transaction differ in nature especially in terms of the amount of monies the transaction requires.
As far as the case study is concerned, any transaction beyond the amount of Uganda Shillings Twenty Five million 25,, has to be authorized by the bulk tellers in charge whereas transaction below that amount of money can be carried out between the teller and the client without any authorization unless the client or customer is actually borrowing a loan from the bank. This indicates that the company has put in place risk management strategies so as to reduce on the level of risks associated with the business operations which may lead to losses.
To establish the relationship of computerized accounting system effectiveness on financial reporting in manufacturing firms under this objective the researcher used Person correlation coefficient to establish the relationship between the variables. Correlations Computerized accounting Financial reporting Computerized Pearson 1.
Correlation is significant at the 0. Therefore This has been linked to the benefits of applying computer systems while generating financial reports and with computerized accounting system data balances are available anytime to aid management make decisions Lancouch Therefore there exists a positive correlation between timeliness and accuracy meaning that the responses on accuracy and timeliness are consistent to with each other.
The study showed that the company case study actually makes use of a computerized accounting system. This is evidenced by the results given by the respondents in agreement with the use of the system in the company.
All these functions of the system have enabled the bank run its operations smoothly in a much more effective and efficient manner. Findings revealed that there is a computerized accounting system in Stanbic Bank.
According to results, Findings also revealed that the computerized accounting system has enhanced the quality of financial reports and helps to maintain error free records while providing easy timely information for decision making, easy transaction processing as well as easy storage, reference and access to information.
The study also revealed that over the time, staff of Stanbic Bank has since gain sufficient experience in dealing with the computerized accounting system as daily activity reports can automatically generated on a daily basis. This according to the findings has improved operational efficiency and effectiveness amongst the staff.
It was however, established from the respondents that management sometimes overrides the controls in place to generate reports that portray optimistic corporation financial positions. This revelation shows a dangerous position on the state of affairs of Stanbic Bank as quality and accuracy of financial reports generated become highly doubtable. With all these values at hand, it is clear that the system actually performs its operations very well as far as guaranteeing effectiveness and efficiency of business operations is concerned.
The irregularities of the system however, count in as well. These majorly include risks of system failure and eye strains among others. Most of these weaknesses of the system can actually be combated easily in order to reduce on the business risks that may come up as a result. For example, system failure can be solved through consistent upgrading of the system and the aspect of eye strains can be controlled by avoiding long working hour on computers and operation through working shifts.
From the findings, financial reports generated through computerized accounting are mainly consistent, reliable and material among other qualities. These most prominent qualities of financial reports generated through computerized accounting make the system much more unique to the manual accounting system especially where accuracy in financial calculations and reliability in reporting count.
With this in mind, it is worth to recommend a computerized accounting system for business operations especially in of the financial nature as compared to the outdated manual accounting system. The results from the study confirm that computerized accounting performs several unique tasks in a company which are satisfactory. This is indicated by the tasks noted down by respondents in the questionnaire on this variable.
Quick Financial Reports: The researcher found out that through computerized accounting system, financial reports can be generated quickly.
This side with McBride view that computerized accounting system can generate different types of reports needed by management for instance profit and loss reports, and VAT reports among others. It was observed that the quickness in generation of the reports is due to the fact that through computerized accounting, data processing and analysis are faster and more accurate hence managers can instantly access different information which leads to easy and quick decision making.
Improvement in Business Performance: As pronounced by Indira that computerized system is a highly integrated application that transforms the business processes with its performance enhancing features. Thus accounting functions, inventory control and statutory reporting can be easily done resulting into faster access to business information.
Accuracy and Efficiency: Due to expansions, business transactions increase and such transactions can only be recorded and maintained accurately. The study revealed that the firm can handle large volumes of accounting data with ease which was the same view pointed by McBride Computerized accounting can handle data many times greater than humans hence cost effective.
Simplified Posting of Transactions: There is no need to have huge paper documentations as in manual systems. The accountant emphasized the advantage that accounting functions such as record keeping, double entry principle are simplified with computerized systems. Cook also echoed that accounting functions such as posting transactions are simplified. However there should be accuracy in entering data otherwise human errors in inputting data results into inaccurate financial reports.
However the researcher also established that computerized accounting does not have intelligence to eliminate or correct errors made by humans during data entry but can only detect errors. Easy Auditing: The researcher was informed that when external auditors come, there work is simplified because all sets of transactions are easily availed to them hence saving time and costs.
However, the study results indicate that advantages of a computerized accounting are much more paramount than its disadvantages. This reflects a positive response in the adoption of the use of computerized accounting. The study findings also identified a number of qualities or characteristics of reports generated through computerized accounting. It is evident that most of these qualities are unique to those of the reports generated through manual accounting, thus making the latter system much preferable.
From the findings, response is high that the company case study runs its financial operations, right from the beginning point of data entry, data processing and security to the end point of data reporting of a financial nature in a computerized manner. It is therefore fair to conclude that Stanbic Bank Uganda Limited actually make use of a computerized accounting system.
This therefore zeroes to the computerised accounting as more of an asset than a liability to business operations and reporting. The study also established a number of qualities of financial reports generated through computerised accounting. From these findings however, it is evident that reports produced through manual accounting have also got their own strengths characteristically but all the same, financial reports generated through computerised accounting have much more paramount and unique qualities that still leave computerised accounting as a better option to financial reporting.
As seen from the earlier chapter, computerized accounting systems perform enormous tasks which if performed correctly provide the company with accurate, efficient and timely reports. To find out the pros and cons of computerized accounting to financial institutions: The computerized accounting system has got its own strengths and weaknesses while in operation. To establish the qualities of financial reports generated by a computerized accounting system.
In the business world of a financial nature, daily financial operations have reported several weaknesses such as errors and intentional figure manipulations being common to financial reports generated through the manual accounting system.
Chang added that many ERP systems involve journal recording. This means that those not involved in the operation department may not be able to identify the personnel responsible for some data they may need. Conventionally, financial institutions are composed of organizations such as banks, trust companies, insurance companies and investment dealers. Almost everyone has deal with financial institution on regular basis. Everything from depositing money to taking out loans and exchange currencies must be done through financial institutions.
Sinkey, , El-Hawary et al. Financial institutions: This is an institution which collects funds from public institutions or other institutions and invests them in financial assets. It is an enterprise such as a bank whose primary business and function is to ollect money from the public and invest it in financial assets such as stock, shares etc. It is a set of documents usually prepared by government agencies at the end of an accounting period. Umwari Yvone , Financial reporting is the basic purpose of accounting as it provides information used in decision making.
The financial reports or financial statements which include the balance sheet, income statement and the statement of cash flow among others also provide an overview of any organization financial conditions in both short and long term period. The financial reports provide information that is useful to a wide range of users in making economic decisions.
Therefore efforts should be made to ensure that they are accurate, under stable, relevant, reliable, and comparable Umwari Yvone, , page Generally Accepted Accounting Principles started that the computerized accounting system is an accounting information system that processes the financial transactions and events as per Generally Accepted Accounting Principles GAAP to produce reports as per user requirement.
GAAP also defined the computerized accounting as one of database oriented applications wherein the transaction data is stored in well organized database. The user operates on such database using the required and desired interface and also takes the desired reports by suitable transformations of stored data into information. Common mass storage devices include disk drives and tape drives. Memory: Enables a computer to store, at least temporarily, data and programs.
Objectives of Accounting: Frank J. To assess the taxable income and the sales tax liability. Profit for a period of one year can readily be manipulated by omitting such costs as advertisement, research and development, depreciation and so on. Accounting information is expressed in terms of money. Non-monetary events or transactions, however important, are completely omitted.
Accountants calculate income as excess of revenues over expenses. But they consider only selected revenues and expenses. For example current assets e. Accordingly the current assets may be valued on cost basis in some year and at market price in another year. In this manner, the rule of consistency is not followed regularly.
In this way the effect of inflation or deflation is not taken into consideration. The direct result of this practice is that balance sheet does not represent the true financial position of the business. The accounting cycle Jay L. C stated that the accounting cycle is a complete sequence of accounting procedure that is repeated in the same order during each accounting period.
Ireland stated that the earliest roles of accounting information were to measure and record financial transactions and provides information for stewardship purposes. It is essentially concerned with ensuring that all business transactions of financial nature are properly recorded. Recording is done in journal, which is further subdivided into subsidiary books from the point of view of convenience. Items of similar nature are classified under appropriate heads.
The work of classification is done in a book called the ledger. It is done in a manner, which is useful to the internal and external users. Internal users interested in this information are the persons who manage the business.
External users of information are the investors, creditors, tax authorities, labor unions, trade associations, shareholders, etc. Interpretation of the data helps the management, outsiders and shareholders in decision making. The main concern of the creditors is focused on the credit worthiness of the firm and its ability to meet its financial obligations.
They are therefore concerned with the liquidity of the firm, its profitability and financial soundness. The employees have a stake in the outcomes of several managerial decisions. Greater emphasis on industrial democracy through employee participation in management decisions has important implication for the supply information to employees. Government: Government uses financial information for compiling statistics concerning calculation of profitability, taxes, computation of national income, and determination of the industrial growth.
Lenders: this party would like to have information on the financial performance and position of the business to assess whether the business is profitable enough to pay the interest on loan and whether it has enough resources to pay back the principal amount when it is due.
This can be achieved by introducing computerized accounting system. The reports of a manual accounting system reveal balances of accounts on periodic basis while computerized accounting system is capable of generating reports of any balance as when required and for any duration which is within the accounting period.
There are accounting queries which are based on some external parameters. For example, a query to identify customers who have not made the payments within the permissible credit period can be easily answered by using the structured query language SQL support of database technology in the computerized accounting system.
But such an exercise in a manual accounting system is quite difficult and expensive in terms of manpower used. It will still be worse in case the credit period is changed. Scalability: Computerized accounting systems are fully equipped with handling the growing transactions of a fast growing business enterprise.
The requirement of additional manpower in Accounts department is restricted to only the data operators for storing additional vouchers. There is absolutely no additional cost of processing additional transaction data.
In a manual accounting system the reports and information are likely to be distorted, inaccurate and therefore cannot be relied upon. It is so because it is being processed by many people, especially when the number of transactions to be processed to produce such information and report is quite large.
However, in computerized accounting system only the authorized users are permitted to have access to accounting data. Security provided by the computerized accounting system is far superior compared to any security offered by the manual accounting system. A strong accounting framework in terms of accounting principles, coding and grouping structure is pre?
The computerized accounting is one of the database oriented applications in which the transaction data is stored in well organized database. The user operates on such database using the required interface and also takes the required reports by suitable transformations of stored data into information.
Therefore, the fundamentals of computerized accounting include all the basic requirements of any database oriented application in computers. Data Processing Equipment Yang and Guan stated that the introduction of data processing equipment has many impacts on the traditional manual accounting systems and that IT systems require that the recording and processing procedures be concentrated in departments that are separate from the origin of the data. They also mentioned that computerization has reduced significantly the time available for the review of transactions before their entry into the accounting records.
As a result, in poorly controlled systems the opportunity for uncovering errors before they have impact on operation has been reduced, which highlights the increase importance of improved internal control procedures.
Yang and Guan they also pointed out that computerization and automation could potentially eliminate the audit trial by which individual records can be traced to final reports or to the original transaction. In many operational applications, the accounting entries are generated as a by-product of underlying transactions, thus making it possible to shorten the existing delays in the creation of accounting data.
As discussed above, computerized accounting system enables faster, powerful, simple and integrated generation of reports that help the company simplify its business processes easily and cost effectively. With computerized accounting system, the company will have greater visibility into day to-day business operations and access to vital information for the purpose of generating financial statements.
Computerized accounting has the ability to handle huge volumes of transactions without compromising on speed or efficiency. Boochholdt who defines accounting information systems as systems hat operate functions of data gathering, processing, categorizing and reporting financial events with the aim of providing relevant information for the purpose of score keeping, attention directing and decision making.
And Islam argues that in computerized system computers are used in processing data and in disseminating accounting information to interested users. Now -a-days most of the small business organizations eventually replace their manual accounting system with computerized accounting system for its importance of generating financial reports accurately and quickly.
Frank Wood and Allen Songster , say that the use of computers in accounting system enables an organization to have better financial reporting system. They state that through computerization, there is straightforward matter designing and producing a new report and it can be easier to print all possible types of report across all functions than to limit the report produced to those actually needed by people they are sent to.
This implies that if the benefits of computerization are to be enjoyed, regular checks need to be made ensure that the data in puts is accurate and timely. As a result heavy cost is incurred to purchase a new hardware and software from time to time. This requires training and cost is incurred to train the staff personnel. It is to be guided by the user. It requires a neat, clean and controlled temperature to work efficiently. S N Maheshwari stated that Accounting records are a paramount because the resulting financial statements and reports help in planning and making decisions.
They may be used by some third parties bankers, creditors, civil society or investors who have interest in the business activities or who may be affected by the financial performance of the business firm.
Logical scheme is implied for codification of account and transaction. Every account and transaction is assigned a unique code. The grouping of accounts is done from the first stage. This process simplifies the work of recording the transactions. Trial balance is prepared by the computer to check accuracy of the records. With the help of trial balance the computer can be programmed to prepare trading, profit and loss account and balance sheet.
Recording of transaction In respective voucher These components can be shown as: Purchases Sales Ledger Balance sheet Trading, profit and loss account Trial balance Figure 2: components of computerized accounting software 2. It functions as an accounting information system.
Computerized software has also rationalized accounting workflow, allowing companies to focus on producing goods and services. Several types of accounting programs exist depending on the type of company and size of the business operations. These modules are broken down by accounting function, such as accounts payable, accounts receivable, fixed assets and general ledger.
This allows accountants the ability to exports financial transactions into a manageable format for preparing and reviewing information. However, many of the programs available today can be customized to fit small and large businesses without sacrificing functionality. The major accounting software modules are the system manager, general ledger, accounts receivable, accounts payable, inventory, payroll, and fixed assets.
Most mid- to high-end accounting software has these modules available separately, and you may choose to purchases only those modules that suit your computerization needs. Most low-end accounting software packages contain all the modules you need in one package, and you can choose which modules to install and use in your system.
0コメント