Accounting Software Essay

1368 words - 5 pages

Since technology is getting more developed time after time, many of life aspects has been influenced by the presence of computer as a remarkable innovation in human history. The emerging of a new concept called Computerized Accounting Information System (CAIS) particularly, is one example of this “cutting-edge calculator’s” intervention on bookkeeping activities. As many companies tend to apply this new frame to treat their transaction recordings, many accounting software developers try to provide an advanced computer program as the main engine of the companies’ CAIS. Some of the softwares are declared that it does not need anymore accountant assistances in dealing with financial matters. This claim has sparked a heated debate about whether or not companies could use software as a substitusion to accountant in the future. This essay will discuss arguments from both sides and describe the reasons why accountants still play an important role in making an economical decission.

First of all, this paper will define Accounting Information System (AIS) as a system which is designed to transfer any accounting information to become a reliable financial report and provide the report to stakeholders which will make any business decisions on the grounds of this economical statement. Related to the preceding definition, a Computerized Accounting Information System (CAIS) is a modified version of AIS with an involvement of computer, either hardware or software, in stages of the report production. Meanwhile, the term of Accounting Software can be explained as a tool which is providing features to ease bookkeeping tasks. To avoid the discussion goes too broad, Accountant interpretation will also be hedged as a person who has an educational background in accounting which is recognized by the accountant institute or association in where the accountant practice takes place.

A contention that companies applying CAIS in their business environment should not completely put trust on accounting software without considering accountant opinion is based on analysis that this kind of program has several threats and risks. First peril is that software might provide reports containing unreal numbers. This wrong figure could occur when companies implement accrual based accounting. This accounting base requires a conversion on nominal accounts in order to present it in a balance sheet, because according to the accrual system a financial statement will only represent real accounts. For instance, Weber stated that depreciations, in advance expenses and dividends should be adjusted by the end of accounting period. If adjustment to these accounts is not been done, the asset and profit statement will be reported higher than it should be, all of which are caused by the overstatement of asset value and understatement of expenses. Most sophisticated accounting software would not be able to automate this kind of adjustment. Even though the programmer synchronizes the software to...

Find Another Essay On Accounting Software

Financial Data Management Essay

1115 words - 4 pages reporting? (Appendix, Worksheet box 1). Upon further examination, the specific management question to be addressed is: Can financial data management be made more efficient? (Appendix, Worksheet box 2). Consequently, the research questions are: 1) How to streamline data for financial reporting? and 2) Is a new accounting software system needed? (Appendix, Worksheet box 3). Finally, a key accounting and financial management theory at play here is that

i am Australian Essay

610 words - 2 pages dramatically enhance its accounting function so that it can continue to function effectively.This correspondence outlines the complete scope of work you requested, including objectives, procedures, identification of responsibilities, and estimated fees.OBJECTIVEImplement the Model 60 accounting system on the network. Install the Model 60 software, including implementation and setup, training, conversion assistance, and post-conversion support of

how can i improve my communication skills

610 words - 2 pages dramatically enhance its accounting function so that it can continue to function effectively.This correspondence outlines the complete scope of work you requested, including objectives, procedures, identification of responsibilities, and estimated fees.OBJECTIVEImplement the Model 60 accounting system on the network. Install the Model 60 software, including implementation and setup, training, conversion assistance, and post-conversion support of

Accounting Cycle

1139 words - 5 pages Cycle". Retrieved on April 01, 2006 from http://www.quickmba.com/accounting/fin/cycle/Sage Software, Inc. (2006). Reversing Entries. ". Retrieved on April 006 from http://www.simplyaccounting.com/us/support/faq/simp407.aspSolution Matrix Ltd. (2004-2006). Accounting Cycle. ". Retrieved on April 006 from http://www.solutionmatrix.com/accounting-cycle.htmlThe Regents of the University of California. (2004). "Accounting: How to Prepare Journal

accounting

884 words - 4 pages , the accounting profession began to take on a whole new look. Computers and accounting software has altered the industry entirely. Microsoft excel, an electronic spreadsheet, eliminated the need for adding machines, calculators, ledgers and pencils. Excel made an accountant's job less tedious with less of a margin for error. With use of the computer an accountant can now perform statistical accounting or forecasting analysis with greater efficiency

Accounting and computers

1408 words - 6 pages find that it is very easy to do accounting functions. Posting to the ledger, a tedious task of double entry, when done directly from the general ledger module, can be largely automated when done through special purpose modules like accounts payable or accounts receivable. With an accounts receivable module, you just need to enter the actual cash totals of items purchased and the software distributes these amounts to the general ledger so they

Accounting Modules

813 words - 3 pages Accounting software typically consists of a group of accounting modules that create an accounting information system. Several listed a core group of modules that typically are included in a system however, even these differed slightly on what the core group consisted of. Below, you will find a grouping of the various core modules as discussed by the different websites along with an additional list of some of the add-on modules that are

Accounting

813 words - 3 pages Accounting software typically consists of a group of accounting modules that create an accounting information system. Several listed a core group of modules that typically are included in a system however, even these differed slightly on what the core group consisted of. Below, you will find a grouping of the various core modules as discussed by the different websites along with an additional list of some of the add-on modules that are

Accounting

813 words - 3 pages Accounting software typically consists of a group of accounting modules that create an accounting information system. Several listed a core group of modules that typically are included in a system however, even these differed slightly on what the core group consisted of. Below, you will find a grouping of the various core modules as discussed by the different websites along with an additional list of some of the add-on modules that are

Choosing Accounting as a career.

1253 words - 5 pages offer to include budget analysis, financial and investment planning, information technology consulting, and limited legal services. In the year 2009, I see myself working towards becoming an accountant for a large firm. Through much research, I have realized that there are many different fields of accounting to look into.There are four different types of accounting: public, management, government and internal. Public accountants perform a broad

Accounting Cycle

1380 words - 6 pages to come up with one global accounting system.The SAP software is one of the highest recommended international accounting software that is used and has the strongest international features call SAP. It provides multiple currency support. From a balance sheet perspective, accounting for fluctuations in exchange rates has become easier. This software is also in compliance with FASB 52 (Collins, J., 1999-2003).There will need to be global

Similar Essays

Comparision Between Three Different Accounting Software Applications.

851 words - 3 pages effective ways of working.With this complete business solution, employees spend less time on redundant administrative tasks and more time helping to grow the business.Everest Software,Great PlainsIn this presentation I will be comparing and contrasting three different accounting software applications. They are QuickBooks, Peachtree & Sage MAS 500.In a nutshell the following guidelines can determine which of the three software packages, a company

Cost Accounting Software Regarding The Budgeting Process

2044 words - 8 pages Cost Accounting Software Regarding the Budgeting Process Budget tracking and control is a key decision-support tool, so it comes as a surprise that the budgeting capabilities of most accounting suites is rudimentary at best. There are also few stand-alone budgeting packages that deliver budgeting functionality beyond budget templates designed for use in spreadsheet packages. While there are at least four different software approaches

Accounting For The Cost Of Software Programs At Ad Com Games Develop A Product Costing System

1757 words - 7 pages Financial Accounting Standards No. 86 states: “Costs of producing product masters incurred subsequent to establishing technological feasibility shall be capitalized. Those costs include coding and testing performed subsequent to establishing technological feasibility… Capitalization of computer software costs shall cease when the product is available for general release to customers… Capitalized software costs shall be amortized… Amortization

Part 1: Computerizing Accounting Systems Essay

936 words - 4 pages the mouse. All entries are posted to the correct accounts in the general ledger and account balances are calculated-fast, easy, and accurate." (McGraw, pg. 321, 2012).It reduces embezzlement. "Computerized accounting software makes it difficult for employees to steal money from the company. For example, if a payroll employee tries to pay herself more than the allowed amount, her theft will most likely be discovered because the accounting system