Good Example Of Computerised Accounting System Report

Introduction

In the present business world today, there is an increased need for Computerized Accounting System due to its efficiency as compared to the manually operated tasks. Reason for adoption of this mode of accounting has been seen with business owners having revolutionised the way they conduct business. Compared to ancient ways, computerised accounting is not cumbersome and time-consuming, and these have enabled businesses to make a comparison and have, therefore, switched to the use of computerised accounting system.
A computerized accounting system operates transactions using a computer software that is internally installed by the computer's operator. There are several types of computer software that can be used by both small and large organizations for accounting purposes. For instance, QuickBooks and the Peachtree are commonly used by small business people. Big businesses are operating on computerised systems today as a result of software known as enterprise resource planning. Enterprise resource planning (ERP) is management software tool that allows businesses to use integrated applications systems to manage and run the business services and human resources. ERP software integrates series of operation such as product planning and development, manufacturing, sales and marketing among others.

Features of computerized accounting system

Computerised accounting system is not only fast and powerful, but it is also simple and integrated (Horngren and Harrison, 2012). It can automate and integrate business transactions such as sales ledger, inventory, and purchases among others. It is accurate and fast hence it reduces the time for conducting operations. The system is usually easy to operate since it is user-friendly. Furthermore, it is easy to understand the installed programs that are often operated by the system operators and the concerned accounting officers. The use of computerised accounting systems enhances growth of knowledge amongst the users and increases their understanding on the software or application used by their respective organizations.
Secondly, a computerized accounting system allows the user to have a backup and restore previous work. A computer user can store his reports in a soft copy and hard copy by printing out the report. In addition, the use of computerised accounting systems helps in improving the general business performance. Information is key to efficient operations and success. Computerised systems enhance business performance by enabling easy access to information (Horngren and Harrison, 2012). They also promote fast and sound decision making within the organization. The need for accurate information is essential to all the levels of management.
Another critical feature of computerized accounting is scalability and power. This is because they adapt to the current needs and future needs of the business environment due. The systems can handle huge volumes of commercial transactions thus increasing the efficiency. This is crucial to an organization since the output of an individual department is measured in terms of its output.
Lastly, there is the user designed help screens and security that are always available for use at all times. For example, what the banks have adopted today in serving their customers by the utilization of the ATM cards to swipe is a good example of the features of computerised accounting system. This also enhances security of the accounts and minimizes people who can access and defraud the organization’s accounts. Safety and availability of information are always crucial for any user of a system or software in any business environment for the users of such systems and software to operate them efficiently.

Advantages of using computerized accounting system as opposed to manually operated tasks.

Computerised accounts are accurate and not prone to errors as compared to manually operated systems. As long as the programmes are correctly commanded, and precise data is entered, the output work will always be free of errors. Computers also can detect and show out any errors that may arise due incorrect information entered. Thus, efficiency and performance is achieved since output of all categories is perfectly achieved.
Secondly, computers have a high processing speed as compared to manually operated tasks as it can execute a number of instructions within a second (Hall, 2012). Time is always a precious commodity to any organization, and it is an essential factor in achieving the set targets within the required time for all these organizations. This leads to high productivity and growth of business as the enterprise can reach its goal within the shortest time possible.
Thirdly, low cost of operation and maintenance is an advantage of computerised accounting system to manually operated tasks (Hall, 2012). Computerised accounting system has a low cost of maintenance and operation. It is due to these reasons that any organization will adopt computerised accounting system. Any business organization will always aim at low operating costs in order to maximize profits. This allows for growth and expansion of business.
Another advantage of computerised accounting system is consistency of computers given the same data and instructions. Computers will always give the same results given the same instruction and data repeatedly or same sets of relating data as opposed to manually operated tasks. This is critical since organizations would always compare their performances within previously or even with other competitors in the market. These will help a business organization set targets that are measurable and achievable since there is means of assessing performance.
Lastly, computerised accounts are not only reliable in their memory capability but also in their processing and storage capacity (Gitman and McDaniel, 2008). Computers can process millions of transactions within the shortest time possible. Further, as compared to the manual accounting policy, a computerised accounting system can store an enormous piece of information. This supports modern businesses especially large organizations, in which numerous transactions occur daily. They also have many suppliers, creditors, accounts receivable, and other asset and liability accounts. Computerised systems facilitate the storage of such large amount of data.
In conclusion, computerized accounting system features have helped the modern businesses to develop and increase productivity. Output of firm and industries have seen an enormous improvement. Before the introduction of computerised systems, the output of enterprises was constrained by manually operated tasks that are tedious and time-consuming. These is due to increased levels of efficiency, output levels, storage capacity, increased productivity due to high levels of computer accuracy and processing capacity. Reduced cost of operation and increased effectiveness are the ultimate targets of any business organization. Organizations always aim to achieve their efficiency and all these progresses can be mainly attributed to the use of computerised accounting system that have been embraced by managers across all forms of organizations. Therefore, I will highly recommend the adoption of automated accounting systems to business organizations operating within the present business environment both by public and private sectors for improved productivity in of the company.

References

Gitman, L., and McDaniel, C., 2008. The future of business. Mason, OH: Thomson South-Western.
Hall, J., 2012. Accounting information systems. 4th ed.. Cincinnati, Ohio: South-Western College Pub.
Horngren, C., and Harrison, W., 2012. Financial and managerial accounting. 3rd ed. Upper Saddle River, N.J.: Pearson/Prentice Hall.
Romney, M., and Steinbart, P., 2011. Accounting information systems. 3rd ed. Upper Saddle River, N.J.: Pearson Prentice Hall.