Question

Explain the components of Computerised Accounting System.

Answer 1

Components of Computerised Accounting System:

1. Hardware: Hardware comprises of electronic equipments that includes computers, hard disks, monitors, printers and the network that connects with them. Most modern accounting system require a network, the system of electronic linkages which allows many computers to the main computer or server which stores the program and data, with right communication of hardware and software, one can perform all the work on site.
2. Software: Software is a set of instructions and programme that can direct and perform desired task as required by users. Accounting software accepts, edits and stores transactions and data and generates reports as per the requirement.
3. Personal: Personal/Humanware is the people who dealt with computer and software and play an important role in effective implementation of Computerised Accounting System. Management of a Computerised Accounting System requires careful planning of data and access to the data. Security is sought by setting passwords, codes, etc. at different stage which gives them more safety of data.

Creation of Accounting Documents:

In accounting software, generally the following components are used:

1. Creation of Accounting Documents: With the help of computer software, different accounting documents like cash memos, vouchers, receipts, invoices, etc. can be created/prepared.
2. Recording of Transactions: Day-to-day business transactions can be recorded through Computerised accounting software which reduces the paper work.
3. Preparation of Trial balance and Financial Statements: Based on the recorded business transactions, data is transferred into ledger through software and vouchers are also prepared. From these data, Final accounts are prepared automatically.