Use of Computers in Accounting
Computers play an important part in the recording of finical
There care many accounting packages available, and so many businesses
are able to use computerised accounting system.
One of the most important factors of computerised accounting system is
that it provides the same functions as a manual accounting system.
Most business use computer systems instead rather then manual systems
to record finical information, because it is a lot faster file can be
shared more easily and changes can be made easily.
Tasks that can be performed using computers are spreadsheets, which
are used for a variety of functions:
· Producing invoices - working out the costs of products sold,
calculating and adding VAT and producing sales total.
· Working out budgets for future expenditure.
· Working out sales figures for different products or areas.
Most accounting packages will provide the basis for daybooks, ledger
accounts, (double entry), trial balance and final accounts.
· Daybooks -are used for listing sales, purchases and returned goods.
Computer programs often use the batch system, which is a listing of
the items with an overall total to check against computer input. It is
common to find batches for sales, purches, returns, cheques received,
· Ledgers accounts (Nominal ledger or General ledger) - all the other
accounts- expenses, income, assets (items owned) and liabilities
(items owed) - this is also referred as the 'main' ledger
· Trial Balance - If the business has been operating a computer
accounting program such as Sage, the task of producing a trial balance
would have been very simple. The computer would automatically keep a
running balance of each ledger account and would transfer the balances
(including the control accounts for debtors and creditors) to a trial
balance report on the click of a mouse. The convince of using a
computer accounting program cannot be underestimated.
· The final accounts (or finical statements) of a sole trader
· A trading and profit loss account, which shows the profit or loss of
· A balance sheet, which shows the assets and liabilities of the
business together with the owner's capital.
Theses final accounts can be produced more often then once a year in
order to give information to the owner on how the business...