• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

The use of ICT in accounting

Extracts from this document...


ZABER MOHAMMED THE USE OF ICT IN ACCOUNTING OF WHAT GREAT IMPORTANCE IS THE USE OF ICT IN ACCOUNTING? STOCK CONTROL Computerised stock control systems run on similar principles to manual ones, but they are more flexible and information is easier to retrieve. You can quickly get a stock valuation or find out how well a particular item of stock is moving. A computerised system is a good option for businesses dealing with many different types of stock. Other useful features include: * Stock and pricing data integrating with accounting and invoicing systems. All the systems draw on the same set of data, so you only have to input the data once. Sales Order Processing (SOP) and Purchase Order Processing (POP) can be integrated in the system so that stock balances and statistics are automatically updated as orders are processed. * Automatic stock monitoring, triggering orders when the re-order level is reached. * Automatic batch control if you produce goods in batches. * Identifying the cheapest and fastest suppliers. * Bar coding systems which speed up processing and recording. The software will print and read bar codes from your computer. The system will only be as good as the data put into it. A thorough stocktake is recommended before publishing results. ...read more.


there are more deeper reasons: * Published accounts can be sent electronically via email, than the more risky convention of using the royal mail. * Mistakes can be rectified more efficiently and quickly. * A 40 GB hard drive can hold up to a potential of two million documents. * More and more accounting firms are using this method more, which means certain restrictions/ access might be integrated into that system, which could eventually mean the phasing out of the older methods. The most important point however is the birth of specialist computer accounting packages, such as Microsoft Office and SAGE accounting; these packages take further shortcuts by already implementing templates and specific layouts. Also as more of these packages are bought, the software design teams phase out errors in previous packages and can also make the software user friendly. By making the packages user friendly, the employees do not need to have a vast knowledge of bookkeeping and accounts in order to input data. This can also have a negative effect because if an accounting opinion is required, then someone who has lesser knowledge and relies on the computer could make more mistakes than a more experienced accountant. Another benefit of a computerized accounting system is that if information is electronically stored, then certain boundaries can be applied to a pc as opposed to a ledger, i.e. ...read more.


A SPECIALIST COMPUTER ACCOUNTING PACKAGE! I have mentioned above an accounting package entitled SAGE Accounting. SAGE Accounting is fundamental to every accountant using a computer because it implements so much tools that a changing business can use such as; accounts, payroll and forecasting. Though recommended that a business employ a qualified accountant, SAGE Accounting is a good tool to use for a business as well. This software provides step by step instructions from basic bookkeeping to creating final accounts, so as well as doing the work, it is also teaching you how to do the work as well. SAGE also has an interactive feedback function, so you can either go onto their website and view FAQ'S, or you can send an email regarding a specific problem, or you can even phone their 24hr support team, or you can even click on help. Most people would assume that this piece of software is targeted for say a person who has a rough idea of accounting, or a large business, or a small business, but this piece of software can be used by almost anybody. It has all the features that a large business needs (as well as having all the features that a small business needs) and with its user friendly interface can be used with great efficiency. ?? (footnote continued) 4 5 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level ICT in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level ICT in Business essays

  1. Computerised Accounts - What are the advantages and limitations of using accounting software and ...

    decision is to whether to install the system, as it may be of much convenience, as it is too expensive as they have not got the funds. When the system is introduced it must be chosen with great care and with proper professional advice, this is mainly because it has

  2. Evaluate the efficiency of Tesco's stock control methods.

    One of the flaws in the Tesco replenishment system is that when items go through the till and the till can't register the price then checkout operators merely put the price through under its department. This means that stock can be sold but the restocking system is never updated.

  1. A description of the use of ICT for internal and external communications of the ...

    The most common form of passing on information is through word-of-mouth messages. In organisations dominated by a teamwork approach, this form of communication is part-and-parcel of everyday interactions between team members. A more formalised way of passing on information in such as organisation is 'team briefing', in which managers and

  2. Develop my understanding regarding the production of accounts and their use for business decision ...

    This needs some form of longer-term finance like a bank loan. With a bank loan, the business usually borrows a fixed amount of money and then pays it back in regular fixed instalments. These repayments include the interest on the outstanding money owed.

  1. kanthal - accounting

    A more accurate and proportionate allocation of overhead costs would help company determine which customers were profitable and which were not. His goals are reasonable and sensible, assuming that the new system will accurately capture profits/losses per customer and product order.

  2. Adrian is currently running Gunner Pass with no other employees. So he does not ...

    Also company reports, government statistics, and surveys published by research organisations can be used as secondary sources of information. Desk research is quicker and cheaper than field research, but your findings are not necessarily accurate or always relevant to your product.

  1. For my Coursework I have looked at how Steve Edwards at Airbus UK uses ...

    This scans the disk and detects viruses. You must ensure it is used regularly. ( This will not protect the computer for viruses that are sent by email. Do not open email from anyone you do not know. ( Do not buy second hand software, unless you can scan the disc for viruses first.

  2. Sainsbury's Supermarket.

    the licence that the franchisee buys is usually restricted to a specific geographical area and for a limited period of time. This process of selling the rights to use a company's name, logo, etc. can result in the parent company experiencing rapid expansion in a country, with little of the

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work