Question

Explain in brief, the importance of computers in modern age.

 

Answer 1

The use of computers in every field right from our home to our work place is well enough to state the importance of computers in our day to day life. In the modern days, computer has gained its own importance in every sphere. It has taken over all the markets, businesses and professions. It has become a major requirement for every business sector today. It is generally regarded as lifeline of modern business- like blood is required for efficient functioning of our body, in the same way computers are required for the smooth running of any type of business. In accounting context too, computers are used to process large amount of data to perform speedy calculations and to generate various accounting reports. Traditionally, the process of accounting was carried manually i.e. by maintaining proper books of accounts such as journal, ledgers, etc. But with the passage of time as technology advanced and business transactions increased, it became difficult to maintain the accounts manually. Therefore, the need for computerised accounting emerged. Records maintained in the computerised accounting system are exactly the same as maintained in the manual system, the only difference being that all these records are maintained electronically with the help of accounting software.

The following are some of the advantages that computers offer for accounting:

1. It helps in online recording and storing of accounting data.

2. It helps in generating computerised purchase and sale invoices.

3. All accounts and transactions are codified logically which means each transaction or account contains a specific code.

4. It helps in grouping of accounts from the very beginning.

5. It provides reports quickly and instantly such as Stock Summary, Trial Balance, Trading and Profit and Loss Account, Balance Sheet, VAT Returns, etc.