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The use of ICT in accounting

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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.

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