Computer is very helpful in accounting. All the interested parties of financial statements can easily track all accounting reports if it is in connected computers. That is the reason, today, all accounting departments make accounts in computer. Before explaining the application of computer in accounting, we are providing little introduction to those who are new for understanding this important concept.
Application of Computer in Accounting
1. To Keep Accounting Record of Big Company is Possible
Suppose, you are the accountant of big MNC. What you see in its business. There are millions of clients from whole world. Is it possible to record all in manual basis. It will be impossible. So, computer and accounting software in it, it will so easy to keep unlimited accounting records without any risk of forgetting.
2. Separate Payroll Accounting is Possible
We all know top costly expense in the business is the salary of employees. So, it must be recorded separately. Computer can help in this. Anytime any edit regarding salary, name or any other adjustment in payroll is possible.
3. Automation of All Financial Accounts
Just go to any CA office. In its computer system, you will see lots of company's financial statements and other accounting reports. How can company fastly send its financial statements to CA office for audit. Answer is very simple. Everything has connected with computer. If accountant will pass voucher entries, financial accounts will automatically be created by computer software.
4. Graphic Presentation of Accounting Results
Computer can be used for graphic presentation of accounting results. You can see the sale trend graphs, charts and diagrams. Not only sale trend but you can see anything in accounting area through graphic way. It will so easy and understandable instead of reading only manual financial results.
5. Updated Fastly
If there is any mistake, we can easily correct. All the accounts will automatically corrected. In manual accounting, it is not possible. There are lots of options which can help more fastly providing the updated accounting reports. For example, computer reminder system can send updated debtor balance to the customer.
6. Best Inventory Control
To record every small item in computer is so easy without keeping big inventory registers. By comparing computer records of inventory and actual inventory, anytime, we can check the difference and find the reason behind this difference.
In simple words, single computer has saved the cost of keeping hundred accounts clerks.Without any errors, computer can records millions of transactions.
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Computer is an electronic device which is used for calculation, comparison, modification and it store all the data. Accounting is the financial records of all business transaction. So, if all the financial records will be in computer, it will be computer accounting instead of manual accounting.
Application of Computer in Accounting
1. To Keep Accounting Record of Big Company is Possible
Suppose, you are the accountant of big MNC. What you see in its business. There are millions of clients from whole world. Is it possible to record all in manual basis. It will be impossible. So, computer and accounting software in it, it will so easy to keep unlimited accounting records without any risk of forgetting.
2. Separate Payroll Accounting is Possible
We all know top costly expense in the business is the salary of employees. So, it must be recorded separately. Computer can help in this. Anytime any edit regarding salary, name or any other adjustment in payroll is possible.
3. Automation of All Financial Accounts
Just go to any CA office. In its computer system, you will see lots of company's financial statements and other accounting reports. How can company fastly send its financial statements to CA office for audit. Answer is very simple. Everything has connected with computer. If accountant will pass voucher entries, financial accounts will automatically be created by computer software.
4. Graphic Presentation of Accounting Results
Computer can be used for graphic presentation of accounting results. You can see the sale trend graphs, charts and diagrams. Not only sale trend but you can see anything in accounting area through graphic way. It will so easy and understandable instead of reading only manual financial results.
5. Updated Fastly
If there is any mistake, we can easily correct. All the accounts will automatically corrected. In manual accounting, it is not possible. There are lots of options which can help more fastly providing the updated accounting reports. For example, computer reminder system can send updated debtor balance to the customer.
6. Best Inventory Control
To record every small item in computer is so easy without keeping big inventory registers. By comparing computer records of inventory and actual inventory, anytime, we can check the difference and find the reason behind this difference.
In simple words, single computer has saved the cost of keeping hundred accounts clerks.Without any errors, computer can records millions of transactions.
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