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

Use of Computers in Accounting

Extracts from this document...

Introduction

Use of Computers in Accounting Introduction Computers play an important part in the recording of finical information. There care many accounting packages available, and so many businesses are able to use computerised accounting system. One of the most important factors of computerised accounting system is that it provides the same functions as a manual accounting system. Main body Most business use computer systems instead rather then manual systems to record finical information, because it is a lot faster file can be shared more easily and changes can be made easily. Tasks that can be performed using computers are spreadsheets, which are used for a variety of functions: * Producing invoices - working out the costs of products sold, calculating and adding VAT and producing sales total. * Working out budgets for future expenditure. ...read more.

Middle

to a trial balance report on the click of a mouse. The convince of using a computer accounting program cannot be underestimated. * The final accounts (or finical statements) of a sole trader comprise: * A trading and profit loss account, which shows the profit or loss of the business. * A balance sheet, which shows the assets and liabilities of the business together with the owner's capital. Theses final accounts can be produced more often then once a year in order to give information to the owner on how the business is progressing. Advantages of a computer accounting program compared to manual accounting program Computer accounting programs are popular because they offer a number of distinct advantages over paper-based systems. They * Save time * Save money * Tend to be more accurate because they rely on single entry input (one amount per transaction) ...read more.

Conclusion

* Activity reports on customer and supplier accounts * Activity reports on expenses accounts. * VAT return. * To conclude I will I will tell my employer what a computer in business can do. It producing invoices - working out the costs of products sold, calculating and adding VAT and producing sales total. Working out budgets for future expenditure. Working out sales figures for different products or areas. * Advantages of a computer are save time, save money. Tend to be more accurate because they rely on single entry input (one amount per transaction) rather than double entry bookkeeping. Provide the mangers of the organisation with a clear and up-to-date picture of what is happening. * Disadvantages of a computer are: On a computer the date can be lost therefore a backup copy is needed. Also the computer might not work therefore there will be no access to the data. Neel Damani ...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 Accounting & Financial Management 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 Accounting & Financial Management essays

  1. A2 Business CourseWork

    They help your business and you help theirs. The suppliers will want to make sure that they not being ripped off because Tesco will be almost inevitably the bigger business and the bigger controller of the prices because they have less to loose. Conflicts could arise when Tesco are not willing to pay enough money to the suppliers,

  2. Btec Business Level 3 Year 1 - Introduction to Accounting

    Fixed Assets Land & buildings Equipment Fixtures & fittings Current Assets Stock Debtors Bank Cash Less Current Liabilities Creditors Bank O/D Working Capital Less Long Term Liabilities Mortgage As financed by: Capital at Start Net profit Less Drawings 26,000 1,050 20,000 35,320 10,750 1,110 67,180 27,050 250,000 17,500 23,025 290,525

  1. Accounting Revision Notes

    Check that there is a balanced accounting entry, in the accounts for each transaction. Business Transaction: A financial event that changes the values in certain accounts and therefore affects the financial position of the business. Objectivity Principle: states that accounting will be recorded on the basis of objective evidence.

  2. Business Income and Expenditure

    to more debt as where if they rented it out they could easily pay it by end of the month which couldn't cost much. Vehicles: many businesses have vehicles for their businesses it is mainly used for a delivery or a pick up; this can be a motorbike, car or van.

  1. Introducing Accounting - Purpose, Information, Statements and Ledgers

    They only interested in a company's financial statements because they want the safety of their daily bread, and they also want to increase their wages and salaries. Many government agencies and departments are interested in accounting information so as to evaluate or review tax returns.

  2. Reflective report - Introduction to Financial Accounting

    I always remind myself to balance the disposal account as the first step, after that working out the loss/profit on disposal, finally put it into the income statement. The provision for doubtful debts account has a similar issue as the disposal account.

  1. I am going to produce a report which assesses the working capital management of ...

    have to pay more money on insurance to cover all the stocks available in the moment. Theft and shrinkage, when there is lots of stock held in a business it becomes a target for theft by staff and others. Due to this reason M&S has put in a careful strategy called the ?Radio Frequency Identification (RFID)

  2. Costs and Budgets of Headliners Hair Salon

    This happens because if the business does not sell the estimated number of products it may not reach the break-even point. Expenditure budget is the certain amount of money the business has planned to spend on a monthly basis. The business is estimating the level of costs.

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