By now the most of them would be familiar with the concepts of accounting and how
different methods of accounting are to be adopted in different situations. We can have a look
into accounting in a computerized environment. The first and foremost thing to remember is that the fundamentals of accounting does not change whether books of account are maintained manually or are computerised.
The same principles of debit and credit that we apply for recording income or expenditure, purchase or sale of assets or creation or discharge of liability in a manual accounting system is equally applicable in a computerised environment. However, since the recording medium is something else compared to hard copy documents and considerable reliance have to be placed on the software for the input, processing and output of the data certain precautions,
methodologies and techniques are to be adopted while maintaining accounts in a
The most important factors of COMPUTERISED ACCOUNTING SYSTEM are,
1.The processing of financial information will be by one or more computers
2.The computer or computers may be operated by the entity or by a third party
3.The processing of financial information by the computer is done with the help
of one ormore computer software
4.A computer software includes any program or routine that performs a desired
function or set of functions and the documentation required to describe and
maintain that program or routine.
5.The computer software used for the accounting system may be an acquired
software or may be developed for the business.
6.Outsourcing of the accounting system is also becoming popular
where an organisation is having the financial accounting processed
from a third party
With computers becoming extensively used in business today, it is obvious that
accounts which were earlier maintained in a manual form will be gradually replaced with
computerized accounts. The speed with which accounts can be maintained is several fold
higher.Hope the Computerized system should be enabled in all process and systems in future.