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Use of Computers in Accounting

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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.

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