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Computerised accounting

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Introduction

Assignment 4 Task Three There are many benefits of using a computerised accounting which I am going to list below and talk about in a little more detail. > Timesaving > Increased speed and accuracy > Less staff required > Less space need Timesaving It is fair to say that a computerised accounting system is much quicker than a manual accounting system as all the user has to do is enter the data into the computer and the computer will make the calculations and produce and print out any reports, invoices or credit notes at the touch of a button. Increased Speed and Accuracy The main benefit of the computerised accounting system is to carry out the processing stage quicker, more consistently and accurately than the manual accounting system. These are a few of the main benefits of a computerised system as it is able to produce reports immediately i.e. ...read more.

Middle

The most important advantage of using the computer is the speed with which the accounting can be done. As well it is very easy to do accounting functions. Posting to the ledger, a lengthily task of double entry, when done directly from the general ledger, can be largely automated when done through accounts payable or accounts receivable. With accounts receivable, you just need to enter the actual cash totals of items purchased and the software distributes these amounts to the general ledger so they become credits to corresponding revenue accounts. At the same time, an offsetting entry is made automatically to the accounts receivable account. With a computer, you can receive a balance sheet, income statement or other accounting reports at the touch of a button. Now I am going to evaluate some of the disadvantages of using a computerised accounting system. Loss of Data When you use a computer, it is possible that data can be lost because of hardware or software damage this can be a huge ...read more.

Conclusion

There will always be some risks which can be covered by insurance. Fraud is usually achieved on a computer system by altering data or the programs used by companies. There are many ways of doing this from additions and deletions to input data, changing the standing information files and modifying the behaviour of programs by using viruses. Whenever a computer is used to handle an organization's accounts, it can be used to gain access to a business funds. In most computerized bookkeeping systems, it is the computer which makes the credit transfer; so by establishing false accounts, or diverting some of the contents of the real ones, money can reach hackers. Computerised accounting systems tend to be very expensive to set up especially for small businesses who don't have the financial backing however for the larger organisations a computerised accounting system will eventually pay for itself after several years as the requires less staff and space. In conclusion I feel that the benefits of the computerised accounting systems outweigh the disadvantages of the system and before soon computers will be in almost every business. ...read more.

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