Unit-V Computerized Accounting

•Unit –V : Computerized Accounting
By
Dr. Roopa.B.Bidnalamath
Teaching Assistant
Rani Chennamma University,P.G.Center.Torvi Vijayapura
18-07-2022
Unit –V : Computerized Accounting
Introduction, Meaning, Features and Significance, ERP,

E-Commerce and E-business, Security aspect of the
System, Maintaining the Hierarchy of Ledger, Grouping
of Accounts, Codification of Accounts ,Coding
Techniques, Accounting Packages, Accounting Software
as a Part of ERP, Outsourcing of Accounting Function,
Generating Accounting Reports.
18-07-2022 Dr.Roopa Bidnalamath

Introduction of Computerized Accounting
• Computerized accounting programs are software solutions that are

used to manage the income and expenses account of an individual,
company or any enterprise. These programs are usually hosted on a
virtual server network or are accessed with the help of an internet
connection. With the help of these computerized programs, one
can record, classify, and report the business transactions in a very
streamlined and easy manner. This software mostly comes with the
option of customization to set the settings of the program to meet
the unique business needs of the person, corporate or the entity
that is using it.

In simpler words, a computerized accounting system is a
software solution that supports enterprises to maintain
significant fiscal transactions, data, financial statements, and
records with extraordinary performance & agility including safer
efficiency. More dependable quality output, economical working
expenses, reliable performance, prominent efficiency, and least
transgressions are a few of the benefits of computerised
accounting.

Features and significance of Computerized Accounting
• Significance of computerize accounting
1) Time and cost savings
2) Organization
3) Storage
4) Distribution
5) Management reports
6) Regulatory Compliance :

1) Time and cost savings :
Using a computerized accounting system saves companies time and
money. The use of computer makes inputting accounting information simple.
Business transaction are entered into the system and the system posts
transactions accordingly.
2) Organization :
A computerized accounting system help business to stay organised.
When information is entered into the system. it makes finding the information
easy. Employees can see any financial information whenever it is needed.
3) Storage :
Storing information is vital to a business. In Computerized System data
cam be stored quickly. after information is entered into the system the
information is stored indefinitely. Companies perform backups on the system
regularly to avoid losing any information.

4) Distribution :
Computerized accounting systems Allow companies to distribute Financial

information easily. Financial statements are printed directly from the system and are
distributed internally and externally to those needing the information
5) Management reports :
Data within the computerized accounting system is accurate and up-to-date.

Management can request online report in real-time and that makes management
decisions more reliable and timely.
6) Regulatory Compliance :
Reports are required on a regular basis from various government Agencies. a

computer system can organize their data and reports to comply with this statutory
requirements savings time.

Features of computerized accounting
1. Digital Storage of Data:
2. Quick Updating:
3. Integrated System:
4. Avoids Monotony of Work:
5. Prompt Decision Making:
6. Transparency:
7. Customization:
8. Scalability:

1.Digital Storage of Data: The recording of data is in a
digital form in this system. It provides convenience in
data modification, retrieval and removal.
2.Quick Updating: The changes in stock are reflected
simultaneously with data entry.
3.Integrated System: It is an integrated system that is
faster and simple to use.
4.Avoids Monotony of Work: The accountants usually
get bored by monotonous work.
Computerized accounting is programming based. Thus,
one only has to track the accounts after recording.
5. Prompt Decision Making: The representation of
accounting information is in a simplified form. So, decisions
making is prompt and efficient.
6. Transparency: The record of day-to-day activities is
systematic and organized. Leading to transparency and
control over the business.
7.Customization: The accounting software isn’t rigid.
Organizations can go for customized software based on their
requirements.
8. Scalability: Computerized accounting can be updated
according to the companies structure.
It is capable of managing even a large volume of
transactions.

ERP on Computerized Accounting
• The ERP full form in accounting is Enterprise
Resource Planning referring to the use of software
to manage day-to-day business activities like
accounting, project management, procurement,
risk management and supply chain operations.
ERP full form in accounting is the acronym.

Security aspect of the System of Computerized Accounting
• Accounting systems contain confidential

information that should be kept safe and secure at
all times. The consequences of unauthorized access
can be devastating--from identity theft problems to
loss of irreplaceable data. When accounting data is
changed or deleted on purpose or by chance, it
creates havoc in the accounting department, calling
into question the reliability or accuracy of all data.
Security aspect of the System of Computerized Accounting are
• Physical Security
• Authentication
• Virus Protection
• Backup
• Considerations

Physical Security
A small business should safeguard its computer systems

against losses and theft. Keep systems and servers in a safe
place not exposed to the elements. Usually accounting
equipment is kept inside offices where doors can be locked,
limiting unauthorized access. Make sure cables connecting
accounting equipment are safe and away from people
tripping on them or rodents destroying them.

Authentication
All your systems should have login IDs and passwords that
authenticate the user, confirming that he is allowed to use the
computer. Do not share passwords and change them
periodically. Many systems can be set up to automatically
request a password change after 90 days, for example.
The authentication process usually involves giving rights to
users; not all users have access to all information. Profiles can
be set up giving certain users access only to the accounts
payable module, while others can have access to reports only,
limiting the risk of misuse of data.

Virus Protection
• Computers are subject to viruses and malware that affect

how they operate. Some viruses allow for system
intrusion--a hacker can get inside the system and create
problems. With the Internet usage, the threat of viruses
and malware is real, making the use of anti-virus software,
firewalls and other security measures a must. A virus
attack can bring an entire accounting system down,
making it unusable and ineffective.

Backup
• A standard security procedure with accounting systems is

to back up data and save the backup in a safe place
outside the premises. The point is that if something
happens to the system, such as fires, floods or other
losses, data is safe and can be restored. A good security
measure is to perform overnight backups as well as to
restore backups once in a while to make sure the data is
safe and usable.

Considerations
• When your system needs to be fixed, you may be opening
your files and confidential information to those who
repair the system. Texas requires special licensing for
those who repair computers, with penalties for those who
skirt this law.

Maintaining the Hierarchy of Ledger of Computerized Accounting
• The general ledger reflects a permanent summary of all your

supporting journals, such as the sales and cash receipts journal and
the cash disbursements journal. Closing your books and maintaining
your general ledger should be one of your top priorities.
• It terms of your company's books, it all boils down to the general
ledger.
• This accounting-must functions as a permanent summary of all
your supporting journals, such as the sales and cash receipts journal
and the cash disbursements journal. In addition, your financial
statements are built from the general ledger.

Tools for keeping an accurate general ledger
For each account title shown on your sales and cash receipts
journal columns and your cash disbursements journal columns,
there is a general ledger account. There are also separate
general ledger accounts for miscellaneous items that don't have
their own column in the journals, but are entered in a
"miscellaneous" column.
For example, Cash, Accounts Receivable, Accounts Payable,
Sales, Purchases, Telephone Expense and Owner's Equity are
all examples of general ledger accounts. Your accounting
software will reserve space in the general ledger for each
general ledger account.

Suggested general ledger accounts
• We've provided a list of common general ledger accounts

many businesses find useful. Depending on your type of
business, you will use many, but probably not all, of these
account names. When you set up your accounting
software, you'll want to include all applicable accounts.

Balance sheet accounts
• Assets
• Liabilities
• Capital Accounts:

Assets:
• Investments
• Petty cash (if you maintain a petty cash fund) • Organization expenses
• Cash in checking (a separate ledger account for each bank • Vehicles
account)
• Cash in savings
• Accumulated depreciation — vehicles
• Accounts receivable • Furniture and fixtures
• Reserve for bad debts
• Inventory
• Accumulated depreciation — furniture and
• Prepaid expenses
fixtures
• Office supplies (if you maintain a significant amount of office • Equipment
supply inventory)
• Utility deposits
• Accumulated depreciation — equipment
• Notes receivable • Buildings
• Accumulated depreciation — buildings
• Land
• Goodwill

Liabilities:
• Accounts Payable
• Sales tax payable
• Federal withholding taxes payable
• FICA taxes payable
• State withholding taxes payable
• Unemployment taxes payable
• Accrued wages
• Unearned revenue
• Accrued income taxes
• Note payable

Capital Accounts:
• Owner's equity
• Owner's drawing account
• Common stock
• Additional paid-in capital
• Preferred stock
• Retained earnings

Income statement accounts
Income:
• Sales
• Revenues
• Sales returns and
allowances
• Sales discounts
• Investment income
• Gain (loss) on sale of assets

Expenses:
• Purchases (if you purchase inventory for resale)

• Freight (if you purchase inventory for resale)
• Purchases returns and allowances (if you purchase inventory
for resale)
• Cost of goods sold: materials
• Cost of goods sold: labor
• Cost of goods sold: direct expenses
• Cost of goods sold: indirect expenses
• Advertising
• Amortization
Office expense
• Bad debt expense Operating supplies
• Bank charges Payroll taxes
• Charitable contributions Permits and licenses
• Commissions expense Postage
• Contract labor Professional fees
• Credit card fees expense Property taxes
• Delivery expense Rent
• Depreciation expense Repairs
• Dues and subscriptions Telephone
• Entertainment
Travel
• Income taxes
• Insurance
Utilities
• Interest expense Vehicle expenses
• Maintenance Wages
• Miscellaneous
Closing the books at the end of an accounting
period
• When you reach the end of an accounting period, hold off a second
before pouring the bubbly: you still need to "close the books."
• At a minimum, you will close your books annually because you have
to file an income tax return every year. If you are having financial
statements prepared, you will want them done at least annually.
However, annual financial statements may not be enough to help
you keep tabs on your business. You may want financial statements
monthly, bi-monthly or quarterly.
•

How to close your books
• After you finish entering the day-to-day transactions in your

journals, you are ready to close the books for the period. A
step-by-step description of how to close the books follows.
How many of the steps you do yourself depends on how
much of the accounting you want to do, and how much you
want to pay your accountant to do.
1. Post entries to the general ledger. Transfer the account
totals from your journals (sales and cash receipts
journal and cash disbursements journal) to your general
ledger accounts

1. Post entries to the general ledger. Transfer the account totals
from your journals (sales and cash receipts journal and cash
disbursements journal) to your general ledger accounts
2. Total the general ledger accounts. By footing the general ledger
accounts, you will arrive at a preliminary ending balance for each
account.
3. Prepare a preliminary trial balance. Add all of the general ledger
account ending balances together. Total debits should equal total
credits. This will help assure you that your accounts balance prior to
making adjusting entries.
4. Prepare adjusting journal entries. Certain end-of-period
adjustments must be made before you can close your books.
Adjusting entries are required to account for items that don't get
recorded in your daily transactions. In a traditional accounting
system, adjusting entries are made in a general journal.

5.Foot the general ledger accounts again. This will give you the adjusted
balance of each general ledger account.
6. Prepare an adjusted trial balance. Prepare another trial balance, using the
adjusted balances of each general ledger account. Again, total debits must
equal total credits.
7. Prepare financial statements. After tracking down and correcting any trial
balance errors, you (or your accountant) are ready to prepare a balance sheet
and an income statement.
8. Prepare closing entries. Get your general ledger ready for the next
accounting period by clearing out the revenue and expense accounts and
transferring the net income or loss to owner's equity. This is done by preparing
journal entries that are called closing entries in a general journal.
9. Prepare a post-closing trial balance. After you make closing entries, all
revenue and expense accounts will have a zero balance. Prepare one more trial
balance. Since all revenue and expense accounts have been closed out to zero,
this trial balance will only contain balance sheet accounts.

Preparing trial balance sheets
• The trial balance is a worksheet on which you list all your general
ledger accounts and their debit or credit balance. The total debits must
equal the total credits. If they don't equal, you know you have an error
that must be tracked down.
• When closing out your books at the end of an accounting period, you
will prepare three trial balances:
1. A preliminary trial balance is prepared using your general ledger
account balances before you make adjusting entries.
2. An adjusted trial balance is done after preparing adjusting entries and
posting them to your general ledger. This will help ensure that the
books used to prepare your financial statements are in balance.
3. A post-closing trial balance is done after preparing and posting your
closing entries. This trial balance, which should contain only balance
sheet accounts, will help guarantee that your books are in balance for
the beginning of the new accounting period.

Finding trial balance errors and keeping a
general journal
• When preparing a trial balance, the total debits must equal the total credits. Don't
be discouraged if they don't. Bookkeeping errors happen. Just think of the trial
balance as a tool to find the errors. Use the following steps as a guide to track
down the error or errors.
• Be sure the numbers on your trial balance are the same numbers shown in your
general ledger. Check to see if you properly classified amounts as debits or
credits on your trial balance.
• Go back to your journals (sales and cash receipts journal, cash disbursements
journal and general journal). Check that the journal totals were properly posted to
the general ledger. Were the correct amounts posted? Were they properly
classified as debits or credits?
• Go back to each journal again. Look at the totals that were posted to the general
ledger. Do total debits equal total credits in each journal?
• Go back to each journal again. Did you foot each column on each page of the
journal? Did you carry forward all column
18-07-2022 totals to the next page? Did all the items
Dr.Roopa Bidnalamath
entered in the "miscellaneous" column get posted to the general ledger?

• Is the difference divisible by nine? If so, it could be a simple
transposition error. For example, writing down 540 instead of 450
results in a difference of 90. Writing down 26 instead of 62 results
in a difference of 36. Notice that both of these differences are
divisible by nine. If the difference between debits and credits is
divisible by nine, go back to the journals, looking for the error.
Knowing that it may be the result of transposed numbers should
help you find it.
• Is the difference between debits and credits 1, 100, 1,000,
10,000, etc.? If so, it is probably an addition or subtraction error.
• Divide the difference by two. Is the resulting number shown on
your trial balance? If so, check to see if you have incorrectly
classified the amount as a debit or credit.

Updating the general journal
• The general journal is usually a two-column journal used for

unusual and annual accounting entries that aren't recorded in
the sales and cash receipts and cash disbursements
journals.
• Adjusting entries and closing entries, made at the end of an
accounting period, are the most common entries made in the
general journal. The general journal is also used to record
special transactions that don't get recorded in one of the
regular journals.
•

Grouping of Accounts
• Business transactions are divided into three groups
as it has been previously mentioned: expenditure,
revenue and financial transactions. According to
this division, the accounting accounts can also be
presented as three main groups, i.e. account
categories: financial accounts, expense accounts
and revenue accounts.

1. Financial accounts
2. Expense accounts
3. Revenue accounts
4. Financial statements accounts or Closing of the

books accounts

1. Financial accounts
1.1.1. Financial assets accountsA financial asset is a company's liquid

resource that can be quickly converted into cash. Financial assets
accounts track cash and cash equivalents, funds in the various bank
accounts, receivables. Examples of financial asset accounts are cash
accounts, bank accounts, and accounts receivable.
2.1.2 Capital accountsIn accounting, capital accounts include those
accounts that track company's equity and liabilities, i.e. its various debts.
3.The Equity accounts show the financial transactions of the investments
made by the owners, their withdrawals of cash for personal use and
retained earnings.
4.The Liability accounts reflect financial obligations of the company, i.e. its
debts: loans obtained from lenders, money a business owes its suppliers,
wages payable etc.

2. Expense accounts
1. The costs incurred for acquisition of the factors of production are recorded in the
expense accounts. The number of expense accounts depends on how accurately
the expenditures are to be broken down.The costs associated with the sale of
products, goods or services are summarized on the Sales Expenses Account,
wages and salaries paid are recorded to the Salaries and Wages Expense Account,
expenditures on equipment goes to the Equipment Expenditure Account, etc. There
are also a lot of other expense accounts: construction expenditure, rent expense,
repairs expense, transportation expense, supplies expense, utilities expense etc.
2. The miscellaneous expense account records those expenditures for which, due to
their small amount, there are no own account is set aside. This account can contain
a large number of minor transactions.
3. It is worth to mention that interest and taxes differ in nature from the other types of
expenses. They are not the acquisition costs of factors of production, but the share
of the company's profit that goes to debt capital investors and society.

3.Revenue accounts
1.Revenue accounts record income from the sales of goods

and services, rental income, interest income, etc. This
category includes, for example, the sales revenue
account, rental revenue account, the interest income
account and the others. As a rule, companies have fewer
revenue accounts compared to expense accounts
because revenues are not broken down as detailed as
expenses.

4. Financial statements accounts or Closing
of the books accounts
• Operating result is calculated periodically and the financial
statements are prepared at the end of each accounting
period. Revenue and expense accounts are temporary
accounts and must be closed at the end of the reporting
period. All revenue and expense accounts’ balances that
refer to accounting period are transferred to the
appropriate permanent account. Accounts that are closed
at the end of each accounting period refer to temporary
accounts. These accounts will have a zero balance at the
beginning of each next period.
Codification of Accounts Coding Techniques
• Code is an identification mark. Generally, computerised
accounting involves codification of accounts. Codification of
accounts is needed where there are numerous accounts heads in
an organisation. There is a hierarchical relationship between the
groups and its components.
• The coding scheme of account heads should be such that it
leads to grouping of accounts at various levels so as to generate
various reports. For example, the codes for various accounts
may be allotted as follows:

Liabilities and Capital
ii. Assets
iii. Revenues
iv. Expenses
Under Liabilities and Capital

i. Capital
ii. Non-current liabilities
iii. Current liabilities

Under Assets
i. Non-current assets
ii. Current assets
The above codification scheme utilises the hierarchy present in grouping of accounts. Major advantage of such coding is that
if the account codes are listed in ascending order, these will be automatically listed as per the desired hierarchy.

Methods of codification
Following are the three methods of codification.

a. Sequential codes
b. Block codes
c. Mnemonic codes

a. Sequential codes
In sequential code, numbers and/or letters are assigned in consecutive

order. These codes are applied primarily to source documents such as
cheques, invoices, etc. A sequential code can facilitate document search.
For example:
Code Accounts
CL001 ABC LTD
CL002 XYZ LTD
CL003 SCERT

b. Block codes
In a block code, a range of numbers is partitioned into a desired number of

sub-ranges and each sub-range is allotted to a specific group. In most of the
cases of block codes, numbers within a sub-range follow sequential coding
scheme, i.e., the numbers increase consecutively. For example:
Code Dealer type
100 – 199 Small pumps
200 – 299 Medium pumps
300 – 399 Pipes
400 – 499 Motors

c. Mnemonic codes
A mnemonic code consists of alphabets or abbreviations as symbols to

codify a piece of information. For example:
Code Information
SJ Sales Journals
HQ Head Quarter

Coding Techniques in computerized accounting
• Mnemonic Coding.
• Sequential Coding.
• Hierarchical Coding.
• Block Coding.
• Faceted Coding.

• Mnemonic Coding
Mnemonic coding in accounting uses abbreviated letters that stand
for a full word. For example, “ACCT” could stand for “account,” “DT”
for “date” or “GTL” for “grand total.”
• Sequential Coding
Also called serial coding, sequential coding in accounting uses
numbers that have a consecutive order. In a bookkeeping ledger, a
sequential code may run down the side of the page with one on
every new line
• Hierarchical Coding
Similar to a library’s Dewey Decimal Classification system,
hierarchical codes are those that an accountant could infinitely
expand upon, if needed, in a manner that is structured and logical
• Block Coding
In accounting, block coding refers to numbers an individual may
assign to general accounting terms while bookkeeping.
• Faceted Coding
A faceted code in accounting is a series of grouped numbers that
represent different headings an accountant may use. If an
accountant is keeping the books for a retail location, for example,
she may state that Facet 1, or group 1, represents the different
departments within the store; Facet 2 represents the different types
of costs the store could incur; and Facet 3 contains subcategories
of Facet 2.
Within each facet is a sequential code that represents a different
item. In the example, Facet 1 may have the following fields: 00
Online Sales, 01 In-Store Sales and 02 Returns. Facet 2 could
include the following fields: 00 Marketing Costs, 01 Office Supplies
and 02 Labor Expenses. Then, Facet 3 could contain a series of
block codes where the numbers 0000 to 01000 represent overhead
costs, where the number 0050 represents the cost to purchase an
Internet domain.
Accounting Packages
• There are many types of accounting packages for
business, with many different features and key
functionalities. The software you should consider will
depend on the type of business you have and how you
run it.
• Ideally, you should look for an accounts package that can
meet all your basic business needs as well as detailed
requirements.

Detailed requirements for accounting packages
• Requirements you may want to consider include:

• Basic bookkeeping - eg sales and purchase ledgers, nominal ledger and invoicing.
• Ability to keep digital records for Making Tax Digital for VAT purposes.
• VAT calculations - your accounts system should be able to keep track of VAT and calculate your
VAT payment at the end of each VAT period.
• Payroll processing - if you have employees, consider a payroll function that calculates PAYE (Pay
As You Earn) and National Insurance contributions weekly or monthly.
• Automatisation of management reports - you may need to prepare internal management reports
periodically, and a system that gives regular management accounts will help improve business
efficiency.
• Invoicing - any accounts package needs to be able to produce invoices, but you will probably want
to be able to customise them and you may want to send them by email.
• Credit control - an accounts package can help by highlighting where customers have exceeded
their limits and providing statements to chase them.
• Compatibility with other computer systems - including accounts system used by your accountant,
as well as stock control systems, an e-commerce website or customer relationship management
systems.
• Industry accreditation - from an independent industry body such as the Business Application
Software Developers Association.
Accounting software as a part of ERP

Good Accounting software :
• Good Accounting software should be designed so that not only accountants can follow it, but also management who need to
understand the financial processes. An easy to use Accounting software should make many tasks easier by simplifying and
automating many of the day to day accounting procedures.
• An ERP Accounting software should not just comply with the law, but it must provide you with the insight to help you run your
business and make business decisions. SapphireOne is offering Sapphire Single-User and SapphireOne Client Server ERP
Accounting Software solutions. Our software solution has 8 Modules and these are, Accounts, Inventory, Job Projects, Assets,
Payroll/HR, Management, Utilities and Workbook. From locally based accounting software to Global ERP, the SapphireOne
financial packages can help you to have a complete understanding of your business financial processes.
•

Outsourcing of Accounting Function

1. Cost Saving:
By outsourcing accounting and bookkeeping services, you
can get access to skilled professionals like CAs, CS’s, tax
consultants and accounts executives at much lower cost
without compromising on quality. Companies tend to save
cost of salary, new software applications, infrastructure,
employment taxes and other overhead costs. We can
perform accounting services far more cheaply and efficiently
than companies working with in-house team.
2. All Professionals Under One Roof:
Aristotle has skilled and trained professionals who can
handle end to end accounting and finance deliverables
efficiently. The company can gain from the expertise of these
professionals who have great knowledge and experience in
this field.
3. Up-To-Date Knowledge And Robust Processes:
The market keeps changing continuously due to frequent amendments in
applicable laws and procedures. Many companies do not have knowledge about or
access to these latest amendments. Updated knowledge of our team and time-
tested processes enable us to provide quality accounting and bookkeeping
services that are accurate. We can bring considerable increase in company’s level
of productivity and efficiency.
4. Scalable:
As the business undergoes change; it may need to throttle the accounting and
book keeping activities. It gets possible to easily manage (increase or decrease)
these services by simply telling us about the changes required.
5. Training And Attrition:
Organizations are not required to spend their time and energy in training, mentoring
and retention of their accounts team as it is the responsibility of accounting
outsourcing partner. With this saved time, top management can concentrate on
core business areas.

6. Focus On Core And Less Time Involvement Of
Management In Routine Accounting Tasks:
With finance and accounting outsourcing, company can
spend more time and focus more on core functions of the
business which are beneficial for the growth of your
company. And, by accounting outsourcing, every
employeegets a chance to work efficiently on his field of work
where he feels he can contribute more.
7. Faster Turnaround Time:
With the help of accounting outsourcing services, there is
faster and timely processing of services as experts having
full knowledge of accounting and finance handles the
processes.
Generating Accounting Reports.
• A business uses their accounting records to compile financial reports called Accounting
Reports. Reports can be as brief or comprehensive as needed for custom-made reports
intended for specific purposes such as profitability of a product line or sales by region.
Accounting reports are equivalent financial statements.
• The most common accounting reports are:
• Income statements: shows the revenues earned during a period, minus the expenses, to
arrive at a profit or loss. Since this judges the performance of a business, this is the most
commonly used accounting report.
• Statement of cash flows: details the sources and uses of cash related to operations,
financing, and investments. It is the most accurate source of information regarding a business’
ability to generate cash.
• Balance sheet: shows the ending asset, liability and equity balances as of the balance sheet
date. This report is used to judge the liquidity and financial reserves of a business.
• Accounting reports might be accompanied by various footnotes that are most likely to be
reviewed in the case of the financial statement being audited.
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•Unit –V : Computerized Accounting

Introduction, Meaning, Features and Significance, ERP,

18-07-2022 Dr.Roopa Bidnalamath

• Computerized accounting programs are software solutions that are

18-07-2022 Dr.Roopa Bidnalamath

18-07-2022 Dr.Roopa Bidnalamath

18-07-2022 Dr.Roopa Bidnalamath

18-07-2022 Dr.Roopa Bidnalamath

Computerized accounting systems Allow companies to distribute Financial

Data within the computerized accounting system is accurate and up-to-date.

Reports are required on a regular basis from various government Agencies. a

18-07-2022 Dr.Roopa Bidnalamath

18-07-2022 Dr.Roopa Bidnalamath

18-07-2022 Dr.Roopa Bidnalamath

18-07-2022 Dr.Roopa Bidnalamath

• Accounting systems contain confidential

18-07-2022 Dr.Roopa Bidnalamath

A small business should safeguard its computer systems

18-07-2022 Dr.Roopa Bidnalamath

18-07-2022 Dr.Roopa Bidnalamath

• Computers are subject to viruses and malware that affect

18-07-2022 Dr.Roopa Bidnalamath

• A standard security procedure with accounting systems is

18-07-2022 Dr.Roopa Bidnalamath

18-07-2022 Dr.Roopa Bidnalamath

• The general ledger reflects a permanent summary of all your

18-07-2022 Dr.Roopa Bidnalamath

18-07-2022 Dr.Roopa Bidnalamath

• We've provided a list of common general ledger accounts

18-07-2022 Dr.Roopa Bidnalamath

18-07-2022 Dr.Roopa Bidnalamath

18-07-2022 Dr.Roopa Bidnalamath

18-07-2022 Dr.Roopa Bidnalamath

18-07-2022 Dr.Roopa Bidnalamath

18-07-2022 Dr.Roopa Bidnalamath

• Purchases (if you purchase inventory for resale)

18-07-2022 Dr.Roopa Bidnalamath

• After you finish entering the day-to-day transactions in your

18-07-2022 Dr.Roopa Bidnalamath

18-07-2022 Dr.Roopa Bidnalamath

18-07-2022 Dr.Roopa Bidnalamath

18-07-2022 Dr.Roopa Bidnalamath

entered in the "miscellaneous" column get posted to the general ledger?

18-07-2022 Dr.Roopa Bidnalamath

• The general journal is usually a two-column journal used for

18-07-2022 Dr.Roopa Bidnalamath

18-07-2022 Dr.Roopa Bidnalamath

4. Financial statements accounts or Closing of the

18-07-2022 Dr.Roopa Bidnalamath

1.1.1. Financial assets accountsA financial asset is a company's liquid

18-07-2022 Dr.Roopa Bidnalamath

18-07-2022 Dr.Roopa Bidnalamath

1.Revenue accounts record income from the sales of goods

18-07-2022 Dr.Roopa Bidnalamath

18-07-2022 Dr.Roopa Bidnalamath

Under Liabilities and Capital

ii. Non-current liabilities

iii. Current liabilities