Computerirzed Accounting

What is Computerized Accounting ?

You hear a lot these days about computerized accounting. Just what is computerized accounting and how does it differ from other kinds of accounting?

Definition

As its name suggests, “computerized accounting” is accounting done with the aid of a computer. It tends to involve dedicated accounting software and digital spreadsheets to keep track of a business or client’s financial transactions.

History

For centuries, accounting was done using hand-written records usually kept in book form. Hence the terms “doing the books” and “bookkeeper.” When computers entered the consumer market in the early 1980s, many software companies developed electronic spreadsheet and accounting programs to take advantage of this emerging technology. One of the first “killer apps” in this field was Lotus 1-2-3, released by Lotus Corp., now part of IBM, in January 1983. Today, the computerized accounting field is dominated by Microsoft Excel, which is part of the Microsoft Office Suite, although there literally dozens of other accounting software packages available, such as Simply and ACCPAC.

Advantages

Computerized accounting has many advantages over traditional manual accounting. Computerized accounting tends to be more accurate, is faster to use, and is less subject to error than its manual counterpart.

Disadvantages

Computerized accounting also has some weaknesses every accountant and business needs to address. As with any computerized application, computerized accounting records are subject to hacking, viruses, malware and theft unless proper security measures are in place. Records must be backed up regularly — preferably to off-site servers — to prevent loss due to power outages, virus damage, fire and natural disasters.

Today, computerized accounting is used in businesses of every type and size. Anyone planning to enter the accounting field at any level needs to be familiar with its principles and operation.

Importance of Computerized Accounting 

The Computerized Accounting is very important in these days for run a business Accurately and fastly . Here are some important point are given to explain the importance of computerized Accounting.These Points are as fallows:

• Automation: Since all the calculations are handled by the software, computerized accounting eliminates many of the mundane and time-consuming processes associated with manual accounting. For example, once issued, invoices are processed automatically making accounting less time-consuming.
•  Accuracy: This accounting system is designed to be accurate to the minutest detail. Once the data is entered into the system, all the calculations, including additions and subtractions, are done automatically by software.
•  Data Access: Using accounting software it becomes much easier for different individuals to access accounting data outside of the office, securely. This is particularly true if an online accounting solution is being used.
• Reliability: Because the calculations are so accurate, the financial statements prepared by computers are highly reliable.
•  Scalable: When your company grows, the ammount of accounting necessary not only increases but becomes more complex. With computerized accounting, everything is kept straightforward because sifting through data using software is easier than sifting through a bunch of papers.
•  Speed: Using accounting software, the entire process of preparing accounts becomes faster. Furthermore, statements and reports can be generated instantly at the click of a button. Managers do not have to wait for hours, even days, to lay their hands on an important report.
•  Security: The latest data can be saved and stored in offsite locations so it is safe from natural and man-made disasters like earthquakes, fires, floods, arson and terrorist attacks. In case of a disasters, the system can be quickly restored on other computers. This level of precaution is taken by Clever Accounting.
• Cost-effective: Since using computerized accounting is more efficient than paper-based accounting, than naturally, work will be done faster and time will be saved. When one considers that Clever Accounting, one of the latest online accounting solutions, starts at just €9.95/month, then computerized accounting really becomes a no-brainer.
•  Visuals: Viewing your accounts using a computer allows you to take advantage of the option to view your data in different formats. You can view data in tables and using different types of charts.

List oF Some Famous Accounting Software

In this no doubt,there are no of List of Accounting Software in the world.According to my knowledge more than 10 thousands Accounting software are available in the Market in all over world.In these software,The List of some important Accounting software are as Fallows:

• Tally Accounting Software

• Peachtree Accounting Software

• MYOB Business Essentials Accounting Software

• QuickBooks Pro Accounting Software

• NetSuite Small Business Accounting Software

• Cougar Mountain Accounting Software

• BookKeeper Accounting Software

• Simply Accounting Accounting Software

• CYMA IV for Windows Accounting Software

• Dac Easy Accounting Software

• Bottom Line Accounting Software  

In this Course we discus very Famous Accounting software Tally.We discus Tally Step by Step briefly into upcoming Classes.For learn Complete Tally visit our Blog.
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