Advantages And Disadvantages Of Manual And Computerized Accounting

In today's time the accounting and book keeping ranges from the old way of paper and pen to extremely large accounting data base systems for the major companies and organizations around the world; although either system could be used but

In the modern business today, there is no more manual accounting. Instead a lot of companies and businesses all over the world are trying to use and adapt by having an accounting system that is computerised, less hassle and fast processing.

Accounting Information Systems The Crossroads of Accounting and IT by Donna Kay, Ali Ovlia Instructor’s Solutions Manual

This paper talks about tools and technology and their effects on managerial accounting. It is clarifying Systems, Applications & Products in Data Processing (SAP) which is one of the most popular and important software in these days and many companies are using this software to manage their supply chain and managerial accounting procedures. Later, it will talk about SAP features, financial staff and their value related to SAP, technology effects on business, and trends.

An accounting information system – its principles and components- Control principle prescribes that an accounting information system have internal controls. Internal controls are methods and procedures allowing managers to control and monitor business activites. Relevance principle prescribes that an accounting information system report useful, understandable, timely and pertinent information for effective decision making. The compatibility principle prescribes that an accounting information system conform with a company’s activities, personnel, and structure. The flexibility principle prescribes that an accounting information system be able to adapt to changes in the company, business environment, and needs of decisions makers. The cost-benefit principle prescribes that the benefits from an activity in an accounting information system outweight the costs of that activity. The five basic components of an accounting information system are source documents, input devices, information processors, information storage, and output devices.

In this assignment I will be comparing the benefit of using manual and computerised accounting system to record business transactions.

Accounting is the recording of financial transactions plus storing, collating, retrieving, overviewing, and presenting the information in different reports and analyses. Accounting is also a profession consisting of individuals having the formal education to carry out these tasks which is accountant. (What is accounting? | AccountingCoach. (n.d.)) Accountant is a practitioner of accounting or accountancy, which is the measurement, disclosure or provision of assurance about financial information that helps managers, investors, tax authorities and others make decisions about allocating resources.

The accountant is responsible for the machines and technology that is available to him/her in dispensing his/her duties. Therefore an accounting issue that arises in business due to technological issues can be traced back to the individual machine and technology where the holder of such technology is held responsible. Such a violation will be treated as a fracture in the accounting code of ethics associated with the use of the machines, software, or other technology’ used. The individual accountant will then be held liable. More often, accountants find themselves in tight positions while preparing financial reports. Therefore an individual’s integrity, objectivity, and professional competence are key components for an accountant, especially when they use technology (Hall, 2008).

This report is produced in order to provide clients a basic compare between the two accounting computer system, Excel and MYOB. By doing this, the customer could choose the best accounting software depend on the business size and its features.

Nowadays, the business world is changing at a faster and faster pace. The reasons for this faster pace are "globalization", information technology, and the faster pace in technological change. The role of IT has shifted over the last decades to become an important part of how firms manage and control their resources. As the result, IT plays a critical role in accounting. IT is the platform for accounting data and it allows certain sophisticated queries to be performed though, IT clearly plays an important role in accounting functions. The impact of IT in firms is broad and manifested in the most varied ways in the integrated systems, which includes ERP systems, internet, intranet, and so on, walk hand in hand with the firm know-how. These technologies have altered the way firms work and their accounting functions.

As technology becomes more sophisticated the traditional way of recording and processing accounting reports starts changing, and the most organizations are using computer systems for maintaining financial records in its information system. When there are many business processes like revenue, expenditure, conversion, and administrative process, that occur in the company, the new data are captured and become input into the accounting information system. These business processes are computerized work steps, and it can be controlled with effective and efficient accounting internal control system, which will safeguard the company assets from any fraudulent activities and ensure the accuracy and completeness of the data. Therefore, this research project is going to address the study that made on one of the biggest corporation, Wal-Mart, and the corporation’s information system, organizational structure, revenues, accounting cycles, process flowchart, risk assessment, internal control system and overview of component of company’s manual and automated information system.

The audience is financial management professionals. The author took a look in the past when a business software system simply meant a computerized program that automated the company's accounting functions, stand-alone financial software packages were sovereign solutions and when integrated accounting packages were the only game in town, the finance department held strategic data hostage. In the article the author identified that the past, present and future of financial management systems are all different. A couple of key points made by the author were financial management products of the future will continue becoming more comprehensive, and they will include more and more parts of the business in their functionality and financial management products of the future will be more complex than ever before, as more functions are added to make these packages useful to an even wider audience. The article was closed with a reminder that embracing new trends would go a long way for the industry. I assess this article as have very strong points on systems as a trend in financial

Then computers were implemented, and Excel made accounting easy. Still, Excel needs for the user to create spreadsheets required for accounting. Accounting evolved in the last years from manual accounting to computerized systems. Excel, classified as a manual system in business, is not reliable for real financial statements. Nowadays, financial statements require accurate information for managerial accounting and Excel is not one hundred percent efficient. The software allows mistakes, provides the manipulation of the accounts and makes it difficult to monitor or supervise the real status of companies.

Information systems changed forever the way accounting tasks are processed. The days of green paper pads are gone, and instead businesses have a centralized place where all accounting transactions are entered and saved. No more looking for paper

Nowadays, accounting and computers are interrelated with each other. Almost every business or people depend on computer for their day to day work, for many of us it has also become a part of our life. But on those days when computer were not in used for doing the business transaction or recording the financial notes, it was really hard to track assets and liabilities and to find out the actual profit and loss.