Question

give features of computerised accounting

Answer 1

Answer:

Features of computerised accounting system :

Computerised Accounting System (CAS) facilitates the management and other users to

maintain accounts and prepare financial statements using computers. The reports generated through CAS are used to analyse financial status of a business and take necessary decisions to strengthen the financial soundness of the business. The CAS possesses the following features:

Explanation:

i) Simple and integrated: CAS is designed to automate and integrate all the business

operations such as purchase, sales, finance, inventory and manufacturing. The CAS may be

integrated with enhanced Management Information System (MIS), multi-lingual and data

organisation capabilities to simplify all the business processes of the organisation easily

and cost-effectively.

ii) Speed: It can perform functions at much higher speed than doing the same manually.

iii) Accuracy: Computers perform functions with high degree of accuracy. If hardware,

software and input by people are proper, the computerised accounting system can assure of

accurate outcome.

iv) Reliability: Computers are used to process large volumes of data and hence, data

provided by it are reliable.

v) Versatility: Computer and accounting software have the ability to perform diverse

tasks. For example, by simply recording accounting entries through accounting software,

one can get trial balance, trading account, profit and loss account, balance sheet and diverse

reports.

vi) Transparency: With computerised accounting, the organisation will have greater

transparency of day-to-day business operations and access to the vital information.

vii) Scalability: CAS enables processing of any volume of data in tune with the change in

the size of the business.

viii) On-line facility: CAS offers online facility to store and process transaction and data

so as to retrieve information to generate and view financial reports in any part of the world.

ix) Security: In CAS, only the authorised users are permitted to have access to accounting

data. Under manual accounting system, it is very difficult to secure such information as it

is open to inspection by any person dealing with the books of accounts.