Computerised Accounting System (CAS)
Over the past two decades the way accounting data is entered, stored and processed has changed considerably. This is due to the introduction of computerized accounting software. Due to use of CAS it is no longer necessary for larger business units to have large store rooms full of ledgers and records. Since all information can be stored in computer hard disks. CAS software gives many advantages over manual systems, e.g. Ledger entries are not recorded in multiple ledgers seperately. A single entry is made and the software will update all the appropriate automatically. CAS is not only useful for limited entering accounting data but it is utilised by other departments also. e.g. Prepare payroll, to keep inventory, etc.
Concept of Computerised Account System
A computerised accounting system is an accounting information system that processes the financial transactions and events as per generally accepted accounting principles to produce reports as per user requirements.
Components of Computerised Account System
Preparation of accounting documents :
Computer helps in preparing accounting documents like cash memo, bills and invoices etc, and preparing accounting vouchers.
Recording of transaction :
Every day business transactions are recorded with the help of computer software. Logical scheme is implied for codification of account and transaction. Every account and transaction is assigned a unique code. The grouping of accounts is done from the first stage. This process simplifies the work of recording the transactions.
Preparation of Trail Balance and Financial statements :
After recording of transaction, the data is transfered into ledger account automatically by the computer. Vouchers are prepared by the help of Accounting vouchers, the computer can be programmed to prepare Trading, profit and loss account and balance sheet.
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