M1: Compare the Benefits of Using Manual and Computerised Accounting System to Record Business Transactions.

Computerized accounting systems have also improved the functionality of accounting departments by increasing the timeliness of accounting information. By improving the timeliness of financial information, accountants can prepare reports and operations analyses that give management an accurate picture of current operations. The number of financial reports has also been improved by computerized systems; cash flow statements, departmental profit and loss, and market share reports

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.

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.

Small businesses occupy a very important place in the economy. These businesses face many of the same problems such as lacking computer experience and do not have sufficient internal computer expertise and decisions as big firms but without the benefit of staff expertise and multiple managerial level. Thus, the top manager or managers

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.

According to Valencia & Roxas (2014), Accounting Information Systems and the whole process may be done through manual processing or automated/computerized accounting system. However there are both advantages and disadvantages within the system-Manual and Computerized Accounting system. The results of this study suggest that may it be manual or Computerized has advantages and disadvantages. The results revealed that Manual Accounting system has the following main advantage over the computerized one. Manual Accounting system is not prone to virus attacks and threats such it cannot be easily hacked nor be altered, it can also save a business from saving too much for new software, and the results also suggest that although Manual Accounting system has strong main points, it also has some weaknesses. These paper files can be easily misplaced, it can be tedious and cost large amount of time and lastly, it is more prone to human error. When it comes to the Computerized Accounting system, the results indicate that the strong points of this system are that it is more instantaneous and the system can eliminate the time consuming process of record keeping. Also, it is possible that Computerized Accounting system is more accurate since it is not prone to clerical errors. The weak points of a Computerized Accounting

Modern data processing systems pose new, risk-laden challenges to the traditional audit process. Whereas it was once possible to conduct a financial statement audit by assessing and monitoring the controls over paper-based transaction and accounting systems, businesses have increasingly turned to electronic transaction and accounting systems. SAS 94 offers guidance on collecting sufficient, competent evidence in an electronic processing environment. It pays particular attention to identifying circumstances when the system of control over electronic processing must be

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.

Using computer-based accounting systems does have its disadvantages, such as certain laws pertaining to confidentiality, the requirement to protect against the loss of data through power failures, the

This is the first type of accounting system. It utilizes paper-based journals and ledgers. Nowadays, Computer-based transaction systems replaced some paper records into computer records. Manual system is labor intensive for this system relies on human processing. Because manual system relies on human processing, they may be prone to error. Organizations employ multiple forms of information technology in their accounting information system. Because of the advancements in information technology computer-based transaction system were created. In this system, accounting data are kept separately from other operating data. At this point, there is a greater degree of compartmentalization of work in order to preserve the integrity of accounting information

User-friendly Interface: Easiness in learning and use makes online accounting software user-friendly to employees with fundamental accounting knowledge and practice. Receipts and statements gets uploaded and updated in the system with minimum time and effort.

Ø Less staff required Ø Less space need Timesaving It is fair to say that a computerised accounting system is much quicker than a manual accounting system as all the user has to do is enter the data into the computer and the computer will make the calculations and produce and print out any reports, invoices or credit notes at the touch of a button. Increased Speed and Accuracy The main benefit of the computerised accounting system is to carry out the

The accounting software is the center of the business. It will require standard accounting software, and shall operate as an immediate update system. Point of sale data shall directly access inventory. When a sale is made dollars and taxes are calculated and logged, inventory is reduced and marked as pending. When the picker has removed the book from its holding area, the item is marked as "picked waiting for delivery." If the book is shipped, the item is marked as delivered when the shipping label is printed. If a book is purchased, dollars and tax are calculated and logged; inventory is increased and marked "pending;" and once the picker has placed the item for storage the item is marked "stored and available for sale." Accounting will require a PC terminal and printer at a workstation.

Today many accounting procedures are automated because of computers and accounting software. Companies receive more accurate, timely and relevant information. Accounting software packages such as Quickbooks have simplified routine accounting procedures. The need for traditional methods of accounting (hand

The accounting software, is a computer software that records and processes accounting transactions within practical components such as accounts payable, accounts receivable, payroll and trial balance. The software may be developed by the organization using it, may be purchased from a third party or may be a combination of both. Today’s packaged accounting software not only records financial transactions and produce accounting reports, but they include functionality for managerial decision making aimed at gaining competitive advantage. (Collins, 2006). Many of the accounting software products have add-ons that can be used to integrate the software with other software. For example, Intuit, offers add-ons that a third party can mix with QuickBooks. Almost all the accounting software have a broad customer base, which is good for small businesses. Accounting and payroll application software packages are the most extensively used packages among small businesses. However, when it comes to adopting a computer system to manage their accounts, small businesses are at crossroads. The problem is, which one of the ever-increasing brands in the market is suitable for them? If they already have one, should they upgrade it to a new system? Can they afford it? Are there any risks? There are all questions that the business asks itself before they even consider any software. The focus of this research is only on the implementation stage of the software. And the focus is from the point of