Cloud Software Trial - Computer programs would be the instructions that tell the electronics how to process data. The typical saying used for these is software.
Some application application is devoted specifically to an accounting task, for instance a payroll package, a set asset register or a stock control package.
Other applications have many uses in business, including their use for accounting purposes. Packages of the sort that we shall describe are spreadsheets and databases.
In principle, it is exactly the same as manual accounting,. That's one of the important facts to remember about computerized accounting.
Accounting functions keep the same names in computerized system as with more conventional written records. Computerized accounting still uses the familiar ideas of day books, ledger accounts, double entry, trial balance and financial statements. The principles of utilizing computerized sales purchase and nominal ledgers are exactly that would be expected in the manual methods they replace.
The only difference is that these various books of account have become invisible. Ledgers are now computer files that are locked in a personal computer-sensible form, ready to call upon.
Cloud Accounting Packages
Disadvantages and Advantages of Accounting Packages
Advantages of accounting packages compared with a manual system are as follows.
• The packages can be utilized by not-specialists.
• A lot of data may be processed very quickly.
• Computerized systems are definitely more accurate than manual systems.
• A computer is capable of processing and handling large volumes of data.
• After the data has become input, computerized system can analyze of information rapidly to offer useful control information for managers for instance a trial balance or a debtors schedule.
The advantages of computerized accounting system far outweigh the disadvantages, particularly for big business. The following may be identified as possible advantages, however.
• The first time and costs associated with installing the system, training personnel etc.
• The need for security checks to make sure that unauthorized personnel do not access data files.
• The necessity to build up a system of coding (see below) and checking.
• Insufficient 'audit trail' it is really not always easy to see in which a mistake has been made.
• Possible resistance on the part of staff to the creation of the system
Computers are used more efficiently if vital information is expressed in the form of codes. For instance nominal ledger accounts will likely be coded individually, perhaps by means of a two-digit code: example
• 00 - Ordinary share capital
• 01 - Share premium
• 05 - loss and Profit account
• 22 - Purchases
• 30 - Debtors ledger control account
• 40 - Creditors ledger control account
• 55 - Interest
• 56 - Dividends etc
In the same way, individual accounts must be given an exclusive code number inside the sales ledger and purchase ledger.