{"id":114,"date":"2021-03-03T09:27:28","date_gmt":"2021-03-03T09:27:28","guid":{"rendered":"https:\/\/bcisnotes.com\/fourthsemester\/?p=114"},"modified":"2021-03-03T09:27:28","modified_gmt":"2021-03-03T09:27:28","slug":"use-of-computers-in-the-accounting-process-the-conceptual-foundation-of-accounting-bcis-notes","status":"publish","type":"post","link":"https:\/\/bcisnotes.com\/fourthsemester\/use-of-computers-in-the-accounting-process-the-conceptual-foundation-of-accounting-bcis-notes\/","title":{"rendered":"Use of computers in the accounting process || The conceptual foundation of Accounting || Bcis Notes"},"content":{"rendered":"<h2 style=\"text-align: center;\">Use of computers in the accounting process<\/h2>\n<p>Computers can be used as accounting machines and perform all the functions which accounting machines perform. Some of the important functions performed by computers include;<\/p>\n<h4>Transactions recording<\/h4>\n<p>Business transactions are recorded accurately and regularly for making available up-to-date accounting information to the management. The operation of recording and posting is done simultaneously with great speed.<\/p>\n<h4>Payroll Accounting<\/h4>\n<p>Computers help in the calculation of wages and salaries to each worker and employee in each department without any error. It helps employees feel satisfied and increases productivity. Apart from transaction recording and payroll accounting, a modern computer can be applied to all types of accounting and technical matters. They can also be used for,<\/p>\n<ul>\n<li>Inventory control<\/li>\n<li>Production planning and control through linear programming<\/li>\n<li>Sales accounting<\/li>\n<li>Purchasing accounting<\/li>\n<li>Budgeting control and standard costing<\/li>\n<li>Machine capacity utilization<\/li>\n<li>Quality control<\/li>\n<li>Input-output analysis<\/li>\n<li>Market research<\/li>\n<li>Management information system, etc<\/li>\n<\/ul>\n<h3>Using Computerized Accounting Software<\/h3>\n<p>The most popular system of recording accounting transactions is manual which requires maintaining books of accounting such as journal, Cash Book, Special purpose books, ledger, and so on. The accountant is required to prepare a summary of transactions and financial statements manually. The advanced technology involves various machines capable of performing different accounting functions, for example, a billing machine. Accounting software is used to implement computerized accounting.<\/p>\n<p>Following are the components of computerized accounting software:<\/p>\n<ul>\n<li>Preparation of accounting documents<\/li>\n<li>Recording of transactions<\/li>\n<li>Preparation of trial balance and financial statements<\/li>\n<li>Analysis of financial performance Reporting<\/li>\n<\/ul>\n<h3>Needs and Requirement of Computerized Accounting<\/h3>\n<p>The need for computerized accounting arises from the advantages of speed, accuracy, and lower cost of handling business transactions.<\/p>\n<ul>\n<li>Numerous Transactions<\/li>\n<li>Instant Reporting<\/li>\n<li>Reduction in paperwork<\/li>\n<li>Flexible reporting<\/li>\n<li>Accounting queries<\/li>\n<li>Online facility<\/li>\n<li>Scalability<\/li>\n<li>Accuracy<\/li>\n<li>Security<\/li>\n<\/ul>\n<h3>Basic Requirements of the Computerized Accounting System<\/h3>\n<p>The basic requirements of any computerized accounting system are the followings:<\/p>\n<h4>Accounting Framework<\/h4>\n<p>It is the application environment of the computerized accounting system. A healthy accounting framework in terms of accounting principles, coding, and grouping structure is a pre-condition for any computerized accounting system.<\/p>\n<h4>Operating procedure<\/h4>\n<p>A well-conceived and designed operating procedure blended with the suitable operating environment of the enterprise is necessary to work with the computerized accounting system. Computerized accounting is one of the database-oriented applications wherein the transaction data is stored in a well-organized database. Therefore, the fundamentals of computerized accounting include all the basic requirements of any database-oriented application in computers.<\/p>\n<p>You may also like <a href=\"https:\/\/bcisnotes.com\/fourthsemester\/?p=84\" target=\"_blank\" rel=\"noopener noreferrer\">The Accounting Framework<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"mh-excerpt\"><p>Use of computers in the accounting process Computers can be used as accounting machines and perform all the functions which accounting machines perform. Some of <a class=\"mh-excerpt-more\" href=\"https:\/\/bcisnotes.com\/fourthsemester\/use-of-computers-in-the-accounting-process-the-conceptual-foundation-of-accounting-bcis-notes\/\" title=\"Use of computers in the accounting process || The conceptual foundation of Accounting || Bcis Notes\">[&#8230;]<\/a><\/p>\n<\/div>","protected":false},"author":2,"featured_media":115,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[39,40,38,41,37],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Use of computers in the accounting process || The conceptual foundation<\/title>\n<meta name=\"description\" content=\"Computers can be used as accounting machines and perform all the functions which accounting machines perform. 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