{"id":422,"date":"2021-03-30T11:20:18","date_gmt":"2021-03-30T11:20:18","guid":{"rendered":"https:\/\/bcisnotes.com\/fourthsemester\/?p=422"},"modified":"2021-03-30T11:43:36","modified_gmt":"2021-03-30T11:43:36","slug":"use-of-computers-in-preparation-of-income-statement-and-balance-sheet-preparation-of-financial-statements-bcis-notes","status":"publish","type":"post","link":"https:\/\/bcisnotes.com\/fourthsemester\/use-of-computers-in-preparation-of-income-statement-and-balance-sheet-preparation-of-financial-statements-bcis-notes\/","title":{"rendered":"Use of Computers in Preparation of Income Statement and Balance Sheet || Preparation of Financial Statements || Bcis Notes"},"content":{"rendered":"

Use of Computers in Preparation of Income Statement and Balance Sheet<\/h2>\n

The use of computers helps accountants store and access financial records, make changes and alleviate the need to keep paper files. If paperwork is needed, computer files can easily be accessed and printed along with any changes the accountant makes at any given time. The manual system of recording accounting transactions requires maintaining books of accounts such as journals, cash books, special purpose books, and ledgers, and so on. This machine is capable of computing discounts, adding net total, and posting the requisite data to the relevant accounts.<\/p>\n

Accounting Software<\/h3>\n

A variety of accounting programs are also available to accountants. Accounting application suites provide specific programs and reports to make an accountant\u2019s job easier. Such tools can prepare tax documents automatically and send them electronically to government reporting agencies. Financial reports are maintained simply by entering information and creating reports with a set of keystrokes, many of which can be configured by the user. Many accounting programs also have industry-specific applications for different types of small businesses.<\/p>\n

Storage and Accessibility<\/h3>\n

A computer helps accountants store and access financial records, make changes and alleviate the need to keep paper files. If paperwork is needed, computer files can easily be accessed and printed along with any changes the accountant makes at any given time. The storage capacity of a computer helps reduce costs and makes financial information more readily accessible. Financial files that require storage can be transferred to CDs, flash drives, or other storage devices.<\/p>\n

Security<\/h3>\n

Computers allow secure access to accounting information by requiring a password for files, programs, and the computer system itself. For most small businesses, such records are confidential and are only accessed by specific personnel, such as executives, accountants, payroll administrators, and human resources workers. Overall, a computer provides multiple security levels to protect financial records.<\/p>\n

Objects of Introduction of Computers in Accounting:<\/h3>\n

Labor Saving:<\/h4>\n

Labor-saving is the main aim of the introduction of computers in accounting. It refers to annual savings in labor costs or increases in the volume of work handled by the existing staff.<\/p>\n

Time-Saving:<\/h4>\n

Savings in time is another object of computerization. Computers should be used whenever it is important to save time. It is important that jobs should be completed in a specified time such as the preparation of payrolls and statements of accounts. Time so saved by using computers may be used for other jobs.<\/p>\n

Accuracy:<\/h4>\n

Accuracy in accounting statements and books of accounts is the most important in business. This can be done without any errors or mistakes with the help of computers. It also helps to locate errors and frauds very easily.<\/p>\n

Minimization of Frauds:<\/h4>\n

The computer is mainly installed to minimize the chances of frauds committed by the employees, especially in maintaining the books of accounts and handling cash.<\/p>\n

Effect on Personnel:<\/h4>\n

Computer relieves the manual drudgery, reduces the hardness of work and fatigue, and to that extent improves the morale of the employees.<\/p>\n

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Use of Computers in Preparation of Income Statement and Balance Sheet The use of computers helps accountants store and access financial records, make changes and […]<\/a><\/p>\n<\/div>","protected":false},"author":2,"featured_media":462,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[123,107,122],"yoast_head":"\nUse of Computers in Preparation of Income Statement and Balance Sheet<\/title>\n<meta name=\"description\" content=\"Use of computers help accountants store and access financial records, make changes and alleviate the need to keep paper files.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/bcisnotes.com\/fourthsemester\/use-of-computers-in-preparation-of-income-statement-and-balance-sheet-preparation-of-financial-statements-bcis-notes\/\" \/>\n<meta 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