Chapter 01 INTRODUCTION TO COMPUTER BASED ACCOUNTING

Chapter 01 INTRODUCTION TO COMPUTER BASED ACCOUNTING

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  INTRODUCTION TO COMPUTERBASED ACCOUNTING CHAPTER 01 CONDUCTED BY: P. Ayanthi Madumali
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  Course Outline • Introductionto Computer Based Accounting. • Difference between manual accounting system and computerised accounting • Advantages and disadvantages of computerised accounting • Accounting Software packages • Types of accounting software files system
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  What is ComputerBased Accounting? • Carrying out functions in the accounting process using a computer software. There are three ways of computer based accounting. • Using a spread sheet package (e.g. Ms Excel) • Using a Accounting Software Package (e.g. Sage) • Using an Enterprise Resource Planning System – ERP (e.g. SAP)
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  • Computerized accountingsystems (or software) have replaced manual-based accounting in virtually all businesses and organizations, providing accountants, managers, employees and stakeholders access to vital accounting information at the touch of a button. • Computerized accounting systems automate the accounting process--improving efficiency and cutting down costs
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  TRADITIONAL/MANUAL SYSTEM OF ACCOUNTING •Data • Instructions INPUT • Manual processing Processing • Information Output
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  PROCESS OF COMPUTERISEDACCOUNTING • Data & instructions • -Cheques/Receipts • -Debit Notes • -Credit Notes • -Invoices INPUT • Electronic Processing Through Computers Processing • Profit & Loss A/c • Balance Sheet Output
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  Advantages • Accuracy • Speed •Storage capacity • Cost reduction • Up-to-date reports • Analyzing capabilities Disadvantages • Initial cost • Replacement requirements • Human errors • System errors • Problem of security • Loss of data • An artificial device • Not suitable for small firms • Requires training on part of accountants COMPUTERISED ACCOUNTING
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  PROCESS/STEPS IN COMPUTERISED FINANCIALACCOUNTING • Planning and opening of an Accounting System • Entering of data • Coding • Bank reconciliation • Posting • Printing of trail balance • Finalization of Accounts
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  ACCOUNTING SOFTWARE PACKAGES General (Tailor-made) •MYOB • Account Pro • Peachtree/Sage 50 • DacEasy • ACCPAC • SAGE • Tally • Quick Book Special (Customized) • Stock control • Systems • Payroll systems • General ledger • systems • Debtors/Creditors • modules • Cash books
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  ACCOUNTING SOFTWARE PACKAGES Accounting softwarepackages can be supplied in • Individual (stand – alone) or • Total Integrated Package In a stand alone system, modules are purchases separately, the transfer of values to the GL or to other modules • Printing control total and posting them • Creating transfer file for posting In an integrated system , all modules are supplied together and operated together • Information created in one module automatically • flows to other modules
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  TYPES OF ACCOUNTINGSOFTWARE FILE SYSTEM • An accounting package organizes an accounting database comprising a number of files to provide accounting information required by the users. These files are fallen into three categories: • Master files • Transaction files • Temporary/ working files
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  Master Files Master filescontain relatively static data plus some quantitative values which are periodically updated by entry of transactions • Debtors master file • Creditors master file • General ledger master file • Stock master file • Fixed asset register • Payroll master file
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  Transaction Files Transaction filessummarize data available in source documents, • Purchase/ Sales Orders • Invoices • Return Notes • Receipts Normally used to update balances in the master files
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  Temporary/ Working Files Temporary filesare short term files, kept for specific purposes, data in which will be deleted when the purpose has been fulfilled. • Suspense Account • Waiting on Bill • Advances Received
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  Thank You……..