The Complete Financial Accounting Course or Tutorial covers a range of the following topics. It is evaluating how computers have affected traditional accounting methods and practices.
- Financial accounting with double-entry bookkeeping
- accounting principles
- Basic Accounting Book – Journal
- accounting ledger
- Accounting Subdiaries – Cash Cook
- Auxiliary Accounting Books
- Accounting Verification by Trial Balance
- Bank Transactions Bank Reconciliation Statement
- Depreciation
- Rectification of Accounting Errors
- Balance Sheet and Profit and Loss Account
- Single Entry Bookkeeping Accounting System
- Nonprofit Accounting
- capital and income
- Reserves and Provisions
In a very short time, the computer has gone from being a scientific curiosity to an indispensable tool of modern society. There is hardly a scientific-technical or business activity that is not affected in one way or another by modern data processing techniques.
The human mind can only handle a limited number of things at a time. The digital computer, on the other hand, can be programmed to compare, measure, calculate, and evaluate thousands of readings in an extremely short period of time.
The computer industry has become the fastest growing industry these days. The sale of mainframe computers is increasing day by day. The computer industry has been further boosted by the introduction of minicomputers and microcomputers, which are small, cheap, reliable, and very light. These are commonly used for process control, production testing, scientific instrument registration, store verification systems, automobile testing and evaluation systems, and medical monitoring, etc.
Computers are now widely used in office administration to do routine administrative work. Today, most of the large and medium-sized organizations are almost completely dependent on their computers. The routine uses of computers are given below:
(i) Accounting, billing, inventory control software with MIS, CRM
Computers are widely used in accounting and there are plenty of software for accounting, MIS, CRM. HiTech Financial Accounting is one such program that has been customized for users in many business and service segments.
(ii) Payroll and personnel records.
Payroll accounting was the first business area to be widely computerized. The calculation of wages or salaries involves a series of variables that are related to the personal data of each employee, such as gross salary or work rate, individual deductions, employee tax obligations, etc. These facts can be retained on computers and processed each month to produce pay stubs for employees.
(iii) Inventory control
The computer helps to exercise the type of stock control that the organization needs. Update sales and purchase records, determine optimal order levels for different items, and print stock lists when desired. The system can be designed to trigger orders when the stock level reaches the reorder point for various items of material; try those items that are slow moving or give a list of items in stock.
(iv) Sales account records
Programming can be done for any sales accounting system. The computer will identify delinquent debtors, determine the correct credit limit for each debtor, and maintain the stores ledger.
(v) Costing and budget control
The budgetary and cost control can be affected through the computer, the computer will indicate the variations of the planned performance.
(v) Production control
The computer also helps a lot in planning and controlling production. Job scheduling may be required due to breakdowns etc. A new critical path may need to be developed. A critical path is the shortest path to follow in production to achieve production goals. The computer helps management establish this new critical path.
Advantages and disadvantages of a computer.
Surely a computer is advantageous because of the high speed of operation and greater precision it provides, savings made by better managerial control, labor savings because it is completely automatic, and finally because of its flexibility in use. However, there is a considerable capital outlay with the difficulty of obtaining experienced analysts and programmers, breakdown and maintenance issues, and finally the fear of obsolescence due to the rapid development of computers.
Type of other applications related to the accounting system
WORD PROCESSOR
It is a software package to assist in word processing. The words are processed. Processing includes inserting, deleting, changing, moving words, paragraphs, etc. Word processing is the preparation of typographical scripts, using computer facilities for the storage and manipulation of text. For example, the word processor has the ability to merge names and addresses with standard text to give the impression that the latter is personalized even in the case of a circular letter.
HiTech Financial Accounting has features so you can export your reports to Microsoft Word, a word processing and mail merge program. You can also write letters to various parties and store the details in the program’s database.
DATABASE
They are simple collections of information (data) about a particular topic. The database file allows you to manipulate the data in any way you want. So the database allows us to work with facts and figures to store and manipulate that data in the desired way. For example, from the same basic information the trial balance is prepared; trading and profit and loss accounts can be prepared; a list of debtors and creditors can be prepared; purchase and sales forecasts can be made, etc. Therefore, efficient database management is needed to provide flexibility in the uses of the information.
HiTech Financial Accounting uses MS Access and MS SQL server databases for strong database connectivity.
SPREADSHEET
It is one of the software programs that have increased the usefulness of the computer for accounting purposes. Spreadsheet programs help you draw vertical and horizontal columns on a large piece of paper. The length and width of each column can be adjusted as needed. Even when columns are drawn once, they can be modified, additional columns can be increased or decreased, existing columns can be inserted, and existing columns can be deleted. It is very useful for businessmen and professionals. It allows us to study multidimensional data in one sheet and helps to arrive at logical decisions. For example, if the profit and loss account was prepared for the year 1989 and you want a comparison with the 1987 figures and the 1990 forecast, the spreadsheet will allow you to provide two additional columns on each side to insert the actual figures for 1987 and 1990 forecast estimates.
HiTech Financial Accounting Software can export your report data to Microsoft Excel Worksheet, which is an advanced spreadsheet application.
It is proposed to write a series of articles on the topics mentioned in this article.