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AMITY UNIVERSITY
JHARKHAND
AMITY COLLEGE OF COMMERCE AND FINANCE
INTERNAL ASSIGNMENT
SUBMITTED TO:
FACULTY NAME : DR. SAPAN KUMAR GUPTA
COURSE CODE : ACCT
COURSE TITLE : COMPUTERIZED ACCOUNTING SYSTEM
SUBMITTED BY:
NAME : AHMAD DANIEL
ENROLLMENT NO. : A
SEMESTER : 5TH
PROGRAM : B.COM (HONS)
BATCH : 2019-
Contents:
- Contents:.....................................................................................................................................................
- Concept.......................................................................................................................................................
- Process........................................................................................................................................................
- Tools............................................................................................................................................................
- Technologies................................................................................................................................................
- References.................................................................................................................................................
the further development of enterprises to provide accurate basis. Therefore, ensure the correctness of the accounting data, the strengthening of internal control is very important. Accounting is most stable of the management disciplines to manage the financial of any business. In spite of its stability and continuity, accounting has seen major changes during the past century. Computerized accounting system is a tool which, when incorporated into the field of Information System, were designed to help in the management and control of topics related to firms‟ economic-financial area. This paper is intended to pursue the concept of computerized accounting system and financial reporting. Now a day, business organizations adopt information technology gradually. In the way organizations use computerized accounting system in their business to entertain many advantages and avoid numerous disadvantages. Financial reports are precisely generated by computerized accounting system and it helps to make business decisions through timely preparation of financial reports and financial reporting.
Process Input: The input to computerized accounting system is the accounting data which is obtained from details of each transaction. Data is originated from source document and this is produced as a result of happening of a transaction, is kept as a proof of transaction. Source document includes invoice cheques received, sales order forms etc. computers are used to produce source documents and data is automatically inputted to the system for shortage and further processing. Another input to system is set of accounting rules and procedures which are coded in accounting software are run by computers when transactions are processed by systems. Processing: The computerized accounting systems are built to take advantages of fast processing capability of modern day computers. In this stage the accounting data is processed as for accounting rules of double entry system of book keeping. The only additional here is that unlike manual accounting computerized accounting system are very fast and error free. Output: The basic output of this system is trading account, profit and loss account, and balance sheet. Computerized accounting system produces these final accounts automatically and on user’s request. These statements can be produced as often as required which is tedious and time consuming activity in manual accounting system procedure. They also transfer output of one component of computerized accounting to another component as input. It means that data sharing is possible in this accounting system. Importance: Accounting system is the whole procedure of producing accounting information. Computerized accounting system is the method of generating accounting information for decision making
Tools Accounting Packages According to free Marriam online, accounting software programmes have greatly increased the productivity of back offices for the past several decades. The type of accounting software packages used in businesses depends on the size of company operations, members of users and different segments or departments in a company. Several options are available and may be customized for business depending on how much they are willing to spend on the accounting software. Some of the accounting packages are:
- Quicks Book: Small businesses and sole proprietorship may use simple accounting software programs like Quick Books or basic computers programs like Microsoft word or Excel. These programs are in expensive and often basis solutions for billing, paying vendors and recording sales. Quick Books is an easy – To – use load – and – click style of software that allows individuals to quickly set up their business by answering of few, ledgers and invoicing modules are provided for business owners to use in their daily operations.
- Peach tree Accounting sage‟s software packages) Mid-size software programs of more functionality for multiple users of business software. Companies can select different models based on business size and the number of uses accessing the software. While they are more expensive, the customization options help limit purchasing unnecessary modules. Sage‟s software packages can be server – or – web – based allowing users to access company information from multiple locations.
- ERPs (Enterprise Resources Systems) Large companies with several operational department or multiple locations may use ERPs as their preferred accounting software packages ERPs, are fully. Customizable packages that can take several weeks to fully implement in a company oracle, people soft, sage and SAP AG are the most common ERPs vendors. Computerized accounting system’s tools:
- Freshbook is one of the leaders in our accounting software category. Our team found FreshBooks to be the most easy-to-use accounting solution for freelance accountants and small businesses currently offered in the market.
- NetSuite ERP is essentially a customer relationship management (CRM) solution, but the platform can be used for sales and marketing automation, as well as order management and customer support. It offers a myriad of tools and features to make financial management simple.
- QuickBooks Online is an accounting solution for small businesses, freelancers, and independent accounting firms. This cloud-based application combines all essential accounting tools in a single platform to help small businesses streamline accounting and financial management tasks.
- Tipalti is a cloud payment automation and management software that helps simplify global mass payments. This makes the software suitable for companies with offices worldwide. Notably, you can accept payment in more than 190 countries, use 120 currency options, and rely on 6 payment methods, including PayPal, wire, local bank transfer, and debit card. Moreover, the software simplifies the daily task of ensuring that your company’s financial data and processes are timely, accurate, and easy to understand.
- Sage Business Cloud Accounting is ideal for small businesses. With that, it offers two affordable plans designed to fit the budget and needs of small businesses. For sole traders and micro-businesses, you can make use of its entry-level accounting solution at $10 per month. If you need invoicing and cash flow management features, you can opt for the app’s higher plan at $25 per month.
- AvidXchange is a comprehensive invoice management and payment automation system built for businesses of all sizes. It is equipped with features for paperless invoicing, purchase order automation, as well as payment processing to help you streamline accounting operations. It also comes with a highly configurable interface and intelligent approval workflows to boost efficiency and reinforce visibility across your accounts payable processes. In addition, the platform has search and filter tools that make it easy to track invoices as well as review transactions.
- Rossum is a powerful cloud-based platform designed to streamlines account payable processes from importing documents, collecting and capturing data, purchase order
added new features like recurring journals and bulk payments received and project deletion.
- SignRequest is an e-signature solution that makes contract management easier. The platform allows users to affix legally binding digital signatures to documents, speeding up approval processes, and helping boost sales for your business.
- Zoho Expense is a reliable product for businesses looking to have a better expense reporting tool for their accounting processes. Using the tool expedites approvals, automates the creation of expense reports, and accelerate reimbursements. One of the things you’ll like about this tool is its intuitive mobile app. With your smartphone, you can simply take a photo of the receipt. The tool automatically transforms it into an expense entry. Technologies The accounting industry is rapidly evolving with the rise of technology. For example, “automation, minibots, machine learning, and adaptive intelligence are becoming part of the finance team at lightning speed” at consulting firm Accenture, as noted in Forbes. Cloud Computing A significant technology trend is working in the cloud. The cloud allows instant access to resources, such as data and computing capabilities. An important advantage of a cloud-based system is the continual updating of information, which allows accountants and clients to analyze data and make decisions based on cutting-edge information. Additionally, according to the Journal of Accountancy, cloud-based technology can also ensure “constant monitoring, rather than intermittent analysis,” whenever information on the system is updated. Cloud computing is experiencing rapid growth as new intelligent technologies — such as the internet of things (IoT), artificial intelligence (AI), and machine learning — are integrated into the cloud, according to Forbes. As these technologies become more commonplace, the future of accounting is looking decidedly cloud-based. Automated Accounting Tasks
Labor and time-intensive facets of accounting — such as audits, tax preparation, banking, and payroll — are quickly becoming fully automated. As the application of AI to create self-learning systems continues to be integrated into accounting tasks, technological systems will take on the repetitive and time-consuming jobs, leaving the analytical and managerial tasks to humans. For example, major software vendors, such as Intuit, Sage, OneUp, and Xero, offer automated data entry and reconciliation options using AI and machine learning technologies in company bookkeeping, according to Forbes. Blockchain Technology Another trend impacting the demand for accountants in the future is blockchain technology, a computer-based recording system that uses cryptocurrency within a user-to-user network. While blockchain may have gained popularity due to bitcoin — a digital currency in which a record of transactions is maintained and new units of currency are generated independent of a bank — the technology has progressed substantially. The attractiveness of blockchain for accounting lies in “the possibility of a new type of accounting ledger — one that can be continuously updated and verified without the threat of being altered or corrupted,” Accounting Today explains. Because blockchain enables users to access ledgers in real time, as well as create smart contracts and record transactions, it’s no surprise the system is catching the notice of accountants. In fact, many accounting firms already implement blockchain, including the Big Four — EY, PwC, Deloitte, and KPMG — according to Accounting Today. References [1] Agrawal R.K., Agrawal H. (2018). The Impact of Computerized Accounting System in, SME (Special References in Rewa Devision). www.conferenceworld.in. 255-264: 978- 93-86171-90-0. [2] Epstein D. financesonline.com/15-best-accounting-software-systems-business. [3] Joseph College. josephscollege.ac.in/lms/Uploads/pdf/material/MATERIAL_COMPACCTG.pdf
