Computerized Accounting Functions and Organizations Productivity
By Kathy Adams McIntosh, eHow Contributor
Businesses use financial information to create statements and to file income tax returns at the end of the year. Some businesses use manual accounting systems, but many businesses opt for computerized accounting systems to simplify the process and reduce errors. Businesses can choose between different types of computerized accounting systems. 1. Purpose * A computerized accounting system serves many purposes for the business owner. It improves accuracy, enhances reporting capabilities and simplifies recording. Accuracy increases because math processes occur automatically without human error. The business owner can record each transaction in the …show more content…
Less Paper * Accounting offices keep financial documentation regarding every transaction recorded in the accounting records. This documentation includes invoices, check copies or receiving documents. Accountants also maintain copies of the schedules they create when calculating different numbers. All this paper fills up filing cabinets and resource rooms in accounting offices. Computerized accounting programs maintain electronic copies of invoices, checks, receiving documents and schedules eliminating the need to keep paper copies.
Audit Trail * Computerized accounting programs also provide the benefit of keeping an audit trail. Most companies undergo financial audits on a regular basis, requiring the accounting staff to track each transaction through the financial records and be able to explain the process to the auditor. Computerized accounting systems maintain the electronic files used to calculate the financial numbers and the actual transaction
In accounting, the accounts that record the values of individual items and phenomenons can be divided into either real or nominal accounts. Real accounts