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Uses of a Computerised Accounting
Automatic Processing: A source document is entered into the system, which automatically updates ledgers, trial balance, statements of profit and loss, and financial position
Uses of a Computerised Accounting
Integration of Functions: Updates related functions automatically Eg. Inventory after a sale, provide payroll records, and produce documents such as invoices and credit notes
Uses of a Computerised Accounting
Management information: Provides reports to aid decision-making Eg. Obtaining an aged trade receivables analysis, audit trails, ratio and performance analysis, break-even analysis, the application of costing systems, production of budgets and capital investment decisions
The advantages of Computerised Accounting
Faster processing: The Speed of processing data is increased as the system will automatically update all the relevant ledgers
The advantages of Computerised Accounting
Saves space: No need for physical books and ledgers
The advantages of Computerised Accounting
Quick production of reports and documents in large quantities and formats to suit the needs of managers Eg. Invoices, as well as overdue letters and aged trade receivables schedule
The advantages of Computerised Accounting
Improved accuracy: Safeguards are built into most accounting packages to prevent mistakes Eg. Journals can't be entered into the system if they don't balance
The advantages of Computerised Accounting
Auditing and fraud prevention: Many systems will highlight unusual and potentially fraudulent activity so that auditors and managers can investigate potential problems
The disadvantages of a computerised accounting system
Cost: Computers, software, installation, maintenance, staff training
The disadvantages of a computerised accounting system
Staff training: Time and resources needed
The disadvantages of a computerised accounting system
Systems crashing: Risk of data loss due to power cuts or programme failures. Procedures can be put in place to back up work regularly
The disadvantages of a computerised accounting system
The disadvantages of a computerised accounting system
The disadvantages of a computerised accounting system
Protecting the integrity and security of data
Protecting the integrity and security of data
Protecting the integrity and security of data
Protecting the integrity and security of data
Protecting the integrity and security of data
Protecting the integrity and security of data
Protecting the integrity and security of data
Protecting the integrity and security of data
Protecting the integrity and security of data