TALLY

GENERAL INFORMATICS SKILL

SYLLABUS

Unit VI

Computerized Accounting (Using Accounting Software) Meaning, features and

advantages of computerised Accounting – Company Creation- Accounts Information-

Ledger – Groups– Cost Centers – Accounts with inventory- stock item and stock Group

creation – voucher – types - entry – P/L A/c, B/S, Bank Reconciliation.

🛑Computerized Accounting (Using Accounting Software)

MEANING

"computerized accounting" is accounting done with the aid of a computer

Computerized accounting refers to carrying out accounting functions or processes using computers. It involves recording and analyzing financial transactions electronically over accounting software.

What is Computerized Accounting Software?

Computerized accounting software is used for evaluating the profitability and financial performance of different organizations.

Features of a Computerized Accounting System:

1. Data Security: A computerized accounting system allows users to store their data in a central location. In this way, if any piece of paper that contains valuable information is lost, no one is at risk of having their information stolen. All the data is hence stored at a central location.

2. Improved Reporting: In Accounting software, various things are automated, and very less things are recorded manually. This helps in improving reporting of transactions and statements.

3. Accuracy and Speed: The automation of accounting processes with the help of various accounting software ensures that accounting work is done fast and accurately.

4. Scalability: Computerized Accounting system is so flexible as to accommodate the changing business volume.

5. Quick Decision Making: Since a computerized accounting system generates real-time information, managers are quick to come up with instant decisions or solutions to a particular problem.

6. Advanced Features: While some accounting software is designed for sole proprietors and small business owners, others are tailored for larger enterprises. If the business is operated at a large scale, you may want to consider a computerized accounting system that comes with features like inventory management and multiple user access.

7. Reliability: A computerized Accounting system produces standard and accurate accounting information consistently.

Advantages of Computerized Accounting System:

1. Accuracy: Accounting errors are one of the biggest problems that businesses face in their accounting process. Accounting software is designed to anticipate common errors and correct them before they are added to the company’s records. It is more accurate than most manual systems.

2. Simplicity: Regardless of the size of a company, accounting software is designed to be straightforward and easy to use. This means that even new employees can quickly understand how to use the system and record their financial activities.

3. Financial Report Accuracy: Accounting software is designed to be completely accurate. Companies can be assured that their financial reports have no errors. This means that managers can quickly make decisions based on the accounting data.

4. Standardized Financial Reporting: The use of accounting software in a business ensures the production of standard financial statements over the years. These reports are very vital when comparing a company’s financial performance over the years, or when comparing different businesses that are similar in operation.

5. Greater Control: A computerized Accounting system helps the management of a company to have greater control over its operations. This is more suitable for a company which is large in size and has multiple departments. All vital information is easily available with one click.

6. Integration: Most Accounting systems are usually integrated with other vital accounting systems, such as online banking. This means that important business processes are performed together and with speed.