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Every debt must be paid in full and on time, and all incoming monies must be noted. Depending upon the size of an organization, developing an accounting system that is accurate and efficient can be a challenge. Although many small businesses keep track of all financial activity manually through the use of a physical ledger, other companies prefer to track monetary transactions with computerized software.
Accuracy
There is an old proverb that begins with the statement “to err is human.” Although the sentiment of this statement was not originally intended as a comment on life in the information technology age, it still applies. Humans do make errors. An absent decimal point or the addition of one too many zeros can drastically alter the accuracy of a financial report. Computerized accounting systems, on the other hand, are designed to minimize the existence of such blunders. Additions, subtractions and other calculations are performed by the machine. This ensures that only the correct total listed at the end of the general …show more content…
Many systems are available and companies look for a system to match their needs.
Read more: Definition of a Computerized Accounting System | eHow.com http://www.ehow.com/facts_6793889_definition-computerized-accounting-system.html#ixzz26QrBljdm 1. Components * A computerized accounting system is made up of a computer or group of computers and an accounting software program. Many different types of systems are available to accommodate any type of business.
Transactions
* A computerized accounting system is used to record the transactions of a business. Every time a transaction happens, an entry is made into the system. The system records all the information and stores it in the system. * Sponsored Links * ERP Integration Guide
5 Documents To Help You With Implementing ERP Software Solution! www.Epicor.com Storage * All information that is entered in the system is stored in the system. Most companies perform back-ups to the system regularly to avoid losing any information.
Accuracy
There is an old proverb that begins with the statement “to err is human.” Although the sentiment of this statement was not originally intended as a comment on life in the information technology age, it still applies. Humans do make errors. An absent decimal point or the addition of one too many zeros can drastically alter the accuracy of a financial report. Computerized accounting systems, on the other hand, are designed to minimize the existence of such blunders. Additions, subtractions and other calculations are performed by the machine. This ensures that only the correct total listed at the end of the general …show more content…
Many systems are available and companies look for a system to match their needs.
Read more: Definition of a Computerized Accounting System | eHow.com http://www.ehow.com/facts_6793889_definition-computerized-accounting-system.html#ixzz26QrBljdm 1. Components * A computerized accounting system is made up of a computer or group of computers and an accounting software program. Many different types of systems are available to accommodate any type of business.
Transactions
* A computerized accounting system is used to record the transactions of a business. Every time a transaction happens, an entry is made into the system. The system records all the information and stores it in the system. * Sponsored Links * ERP Integration Guide
5 Documents To Help You With Implementing ERP Software Solution! www.Epicor.com Storage * All information that is entered in the system is stored in the system. Most companies perform back-ups to the system regularly to avoid losing any information.