computerised Accounting

1. E- Accounting or
Computerized Accounting
Kulbir Singh
Asst. Professor

2. “A computerized accounting system is the accounting information
system that helps in processing the financial transaction and events
as per Generally Accepted Accounting Principles and leads to
generation of reports as per the requirements of the user with
minimum human intervention.”

3. Special Features of Computerized Accounting System:
 It leads to quick preparation of accounts and makes available the
accounting statements and records on time.
 It ensures control over accounting work and records.
 It is capable of generating VAT returns.
 Errors and mistakes would be at minimum in computerized
accounting.
 Maintenance of uniform accounting statements and records is
possible.
 It generates different accounting reports quickly.
 Easy access and reference of accounting information is possible.
 Flexibility in maintaining accounts is possible.
 It involves less clerical work and is very neat and more accurate.
 It adapts to the current and future needs of the business.
 It generates real-time comprehensive MIS reports and ensures access
to complete and critical information instantly.

4. Advantages of computerized accounting
Faster Processing
Cost-effective
Accuracy
Data Access
Up-to-date information
Reliability
Automating reports and analysis
Speeding up processes
Scalable
Speed
Security
Simplifying data entry
Reduce paper work
Reducing errors

5. Disadvantages of computerized accounting
 Data security
 Speed
 A network connection
 Reduction of Manpower
 High Cost
 Require Special Skills
 Trained computer person
 Accounting system not properly set up
 Effect on Health

6. Problems Faced In Computerized Accounting System
 User Training
 System Dependency
 Hardware Requirements
 System Failure
 Backups and Prints
 Voucher Management
 Security

7. Difference between computerized
accounting and manual accounting
Manual Accounting
• In which we keep physical
register of journal and
ledger for keeping the
records of each transaction.
• It produce information
slower than computerized
accounting
Computerized Accounting
• In this system of accounting,
we use computer and
different accounting
software for digital record
of each transaction.
• It produced information
much faster than manual
accounting

8. Difference between computerized
accounting and manual accounting
Manual Accounting
• Manual accounting system
are prone to mathematical
errors
• There is no backup
• Financial statements
prepared manually with
carefully
• Chances of error is vast
Computerized Accounting
• On this system there is no
chance of such type of
errors.
• The ease of backup of a
computerized system
• Financial statements
prepared automatically
• Chances of error is less