Use of Computers in Accounting

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Neel Damani

Use of Computers in Accounting


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.

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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.

  • Working out sales figures for different products or areas.
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Most accounting packages will provide the basis for daybooks, ledger accounts, (double entry), trial balance and final accounts.

  • Daybooks –are used for listing sales, purchases and returned goods. Computer programs often use the batch system, which is a listing of the items with an overall total to check against computer input. It is common to find batches for sales, purches, returns, cheques received, cheques issued.

  • Ledgers accounts (Nominal ledger or General ledger) – all the other accounts- expenses, income, assets (items owned) and liabilities (items owed) – this is also referred as the ‘main’ ledger

  • Trial ...

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