INTRODUCTION TO COMPUTERIZED ACCOUNTING SYSTEMS

ACC 224

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 Overview of computerized accounting systems

• CAS takes accounting transactions as inputs

that are processed through Accounting
Software to generate the following reports:
– Day books/Journals
– Ledger
– Trial Balance
– Position Statement (Balance Sheet)
– Statement of Profit and Loss (Profit and Loss
Account)
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 SALIENT FEATURES OF CAS
• SIMPLE AND INTEGRATED
– CAS is designed to automate and integrate all the
business operations, such as sales, finance,
purchase, inventory and manufacturing.
– CAS is integrated to provide accurate, up-to-date
business information rapidly.

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 SALIENT FEATURES OF CAS
• TRANSPARENCY AND CONTROL
– Increases data accessibility
– Enhances user satisfaction.
– With computerised accounting, the organisation
will have greater transparency for day-to-day
business operations

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 SALIENT FEATURES OF CAS
• ACCURACY AND SPEED
• CAS provides user -definable templates for
fast, accurate data entry of the transactions.
• It also helps in generalizing desired documents
and reports.

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 SALIENT FEATURES OF CAS
• SCALABILITY
• CAS enables in changing the volume of data
processing in tune with the change in the size
of the business.
• The software can be used for any size of the
business and type of the organisation.

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 SALIENT FEATURES OF CAS
• RELIABILITY
• CAS makes sure that the generalised critical
financial information is accurate, controlled
and secured.

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 USING SOFTWARE OF CAS
• There are two basic activities in using software
of CAS:
– One time activities
– and recurring activities.
• One time activities include creation of
Organisation details, accounting year, type of
ledger (also called “creation of master files” ),
etc.

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 USING SOFTWARE OF CAS
• Reccuring activities include entry of
transactions and generation of reports.
• The transactions are recorded on the basis of:
– Cash Vouchers,
– Bank Vouchers,
– Purchase Vouchers,
– Sales Vouchers,
– Journal Vouchers, etc.

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SECURITY FEATURES OF CAS SOFTWARE
• Every accounting software ensures data
security, safety and confidentiality.
• Therefore every, software provides the
following:
– Password Security
– Data Audit
– Data Vault

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SECURITY FEATURES OF CAS SOFTWARE
• Password Security:
– Password is a mechanism, which enables a user to access a
system including data.
– The system facilitates defining the user rights according to
organisation policy
• Data Audit:
– This feature enables one to know as to who and what
changes have been made in the original data.
– Thereby helping and fixing the responsibility of the person
who has manipulated the data
– And also ensures data integrity.
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SECURITY FEATURES OF CAS SOFTWARE
• Data Vault:
– Software provides additional security through data
encryption
– Encryption essentially scrambles the information
so as to make its interpretation extremely difficult
(almost impossible)

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 ADVANTAGES OF CAS
• Timely generation of reports and information
in desired format.
• Efficient record keeping.
• Ensures effective control over the system.
• Economy in the processing of accounting data.
• Confidentiality of data is maintained.

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 LIMITATIONS OF CAS
• Faster obsolescence of technology
necessitates investment in shorter period of
time.
• Data may be lost or corrupted due to power
interruptions.
• Data are prone to hacking.
• Un-programmed and un-specified reports
cannot be generated

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 DISCUSSION
• “Intentional manipulation of accounting
records is much easier in computerised
accounting system than in manual accounting
system”.
• Required:
• Do this exercise in the group of 5 students to
form a team and do the presentation in the
class.

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 Accounting softwares
• There are a number of accounting software
• Tally
• Quickbooks
• Epicor
• Sage
• Peachtree
• Pastel
• MYOB
• ACCPAC
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 Tally
• Tally is made in India
• Tally India PvT Ltd has created a number of
version from its inception.
• Tally 4.5,5.0, 6.3, 7.2, 9.0, Prime
• The latest being TallyPrime
• A new version comes out when there is a
major technological change.

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 TallyPrime

• TallyPrime enables:
– managing accounting entities
– inventory movements
– financial and banking transactions.
– Handling your banking transactions and
reconciliation
– business projections,
– multiple currency,
– interest on outstandings and accounts verification.
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 Install TallyPrime
• To install TallyPrime, your computer must meet
the following technical requirements:
• Operating system (OS) – Microsoft Windows
7 or above
• Bitness – 64-bit applications (for the OS)
• Memory (RAM) – A minimum of 512 MB
• Storage – A minimum available space of 512
MB on your hard disk, cloud location, and so on

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