Question

Explain the features of Computerised Accounting System.

Answer 1

Features of Computerised Accounting System are:

1. Integrated Date and Information: A computerised accounting system is designed to make it user-friendly, automated, and integrated for all business processes, such as purchase, sales, finance, inventory, payroll, and manufacturing. A computerised accounting system can keep accurate, up-to-date business information within the time limit. Computerised accounting is mixed with a Management Information System (MIS) with Multilingual and Data organization capabilities to support the company. All the business operations are easy and cost-effective.
2. Accuracy and Speed: Computerised accounting has various customised templates and software for users, which allows fast and accurate data entry and transaction operations. Thus, after recording the business transactions, it generates various information and reports automatically.
3. Quick Decision Making: The computerised accounting system generates real-time information for quick decisions. The company or firm can plan its activities with the help of comprehensive MIS reports and instant access to complete and critical information about the company.
4. Modern and Integrated: It helps to save time when recording business transactions compared to manual accounting systems, such as various financial statements such as Trial Balance. Profit & Loss A/c and Balance Sheet can be derived at any point within a fraction of a second.
5. Immediate availability of Books of Accounts: In the computerised accounting system, Books and Registers like Cash Book, Bank Book, Purchase Register, Sales, Register and Statement of Account like Receivables and Payables are readily available at any point in time.
6. Security: The computerised accounting system is more secure. Data and information can be kept confidential compared to the traditional accounting system. In this security system, users can create multiple user security controls for various users.
7. Transparency: A computerised accounting system helps the business organisation maintain greater transparency in day-to-day business operations.
8. Grouping of Accounts: Appropriate account grouping is required in the computerised accounting system. Normally, ledger accounts are classified under Assets, Liabilities, Income and Expenditure. As per requirement, these groups are further divided into sub-groups at the user's convenience.