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Significance of Computerized Accounting System

This document discusses the significance of computerized accounting systems. It outlines how accounting systems gather, process, and summarize financial information into reports. Computerized accounting systems provide fast, powerful, scalable, and accurate accounting that enhances user experience and business performance through quick decision making and complete visibility. The key benefits are automation, integration, speed, reliability, and improved business processes that allow companies to access information faster. While computerized accounting has advantages, it also has limitations such as transaction orientation and limited flexibility for ad hoc reports.

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Ravi Kumar
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4K views

Significance of Computerized Accounting System

This document discusses the significance of computerized accounting systems. It outlines how accounting systems gather, process, and summarize financial information into reports. Computerized accounting systems provide fast, powerful, scalable, and accurate accounting that enhances user experience and business performance through quick decision making and complete visibility. The key benefits are automation, integration, speed, reliability, and improved business processes that allow companies to access information faster. While computerized accounting has advantages, it also has limitations such as transaction orientation and limited flexibility for ad hoc reports.

Uploaded by

Ravi Kumar
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Significance of Computerized

Accounting System

Archana. C
The Accounting System
• Accounting is the method in which financial
information is gathered, processed, and
summarized into financial statements and
reports. An accounting system can be
represented by the following graphic.
Cont…
• The purpose of accounting is to provide
information used in decision making.
Accounting may be viewed as a system (a
process) that converts data into useful
information.
• Information processes include:
– Recording
– Maintaining
– Reporting
Salient Features of Computerized
accounting
• Fast, Powerful, Simple and Integrated
• Complete Visibility
• Enhanced User Experience
• Accuracy, Speed
• Scalability
• Power
• For Improved Business Performance
• Quick Decision Making
• Complete Reliability
Fast, Powerful, Simple and Integrated
• Computerized accounting is designed to automate
and integrate all the business operations, such as
sales, finance, purchase, inventory and
manufacturing.
• With Computerized accounting, accurate, up-to-date
business information is literally at the fingertips.
• The Computerized accounting combine with
enhanced MIS, Multi-lingual and Data organization
capabilities to help the company simplify all the
business processes easily and cost-effectively.
Complete Visibility
• Computerized accountings giving the
company sufficient time to plan, increase the
customer base, and enhance customer
satisfaction.
• With Computerized accounting the company
will have greater visibility into the day-to-day
business operations and access to vital
information.
Enhanced User Experience
• Computerized accounting allows the company
to enter data in a variety of ways which makes
work a pleasure.
• Adapting to the specific business needs is
possible.
Accuracy, Speed

•  Computerized accounting has User-definable


templates which provides fast, accurate data
entry of the transactions;
• Thereafter all documents and reports can be
generated automatically, at the press of a
button.
Scalability

• Computerized accounting adapts to the current


and future needs of the business, irrespective
of its size or style.
Power
• Computerized accounting has the ability to
handle huge volumes of transactions without
compromising on speed or efficiency.
For Improved Business Performance

• Computerized accounting is a highly integrated


application that transforms the business processes
with its performance enhancing features which
encompass accounting, inventory, reporting and
statutory processes.
• This helps the company access information faster,
and takes quicker decisions.
• Computerized accounting also guarantees real-time
optimization of operations and enhanced
communication.
Quick Decision Making

• Generates real-time, comprehensive MIS


reports and ensures access to complete and
critical information, instantly.
Complete Reliability
• Computerized accounting makes sure that the
critical financial information is accurate,
controlled and safe from data corruption.
Advantages of Computerized accounting

• Automation of tedious clerical jobs


• Speed and accuracy
• Low cost of packages
• Automatic generation of standard reports
• Redundant data storage permits efficient
generations of some reports
• Increase revenue while lowering operating costs
and enhancing competitive advantage of the
company.
Disadvantages of Computerized accounting

• Transactions orientation only


• Periodic not real time reporting
• Limited flexibility for ad hoc reports
 
Thank You

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