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Im going to discuss about computerized based accounting system
But before anything else:
Let's have a quick overview of computerized based accounting system as compared to the manual.
Kayo guys any idea?

Starting with the manual, there are still businesses that use this system. And it doesn’t imply that just because we have
technological trends, all businesses will follow the bandwagon. Cost-benefit analysis applies. You must do accounting for your small
business. That does not mean you must buy expensive accounting software and a computer with a lot of memory. You can actually
keep a paper ledger if you choose. Small time businesses such as:
Great avenue for learning- this hands-on experience helps you to understand accounting transactions if you computerize
your accounting later.
Applies to any business

Prone to human error
no software in use to confirm calculation
Easier to set up

Longer to generate reports
Can be more flexible than a computerised accounting system
Generating financial reports takes more time and
This can actually free up some of your workday. Also,
you don't have to worry about computer glitches and
Because you don't have a computer categorizing and
software crashes.
totaling figures, you must do this yourself.

More secure- can be more secure because it does
ou have to add columns accurately, double-check
not use the Internet to transfer data to accountants or
your work and physically write in numbers
the IRS.

More suited to smaller businesses
no risk of hacking
Records susceptible to perils such as fire and water

Does not need electricity or batteries

Disaster recovery plans harder to implement

Paper records with no backup are more prone to
no expense for computer equipment, software and
destruction by fire or flood.
employee training
Greater “impression” of control

Computerized accounting systems are software programs that are stored on a company's computer, network server, or remotely
accessed via the Internet.
Certain advantages such as speed and accuracy of operation.
Most importantly, the ability to see the real-time state of the company’s financial position.
Computerized accounting programs can provide instant reports for management, for example:

Aged debtors’ summary – a summary of customer accounts showing overdue amounts
Trial balance, trading and profit and loss account and balance sheet
Stock valuation
Sales analysis
Budget analysis and variance analysis
GST/VAT returns
Payroll analysis

he main advantage is that each transaction needs only to be inputed once, unlike a manual double entry system where two or three
entries are required.
he computerized ledger system is fully integrated. This means that when a business transaction is inputed on the computer it is
recorded in a number of different accounting records at the same time.
Up-to-date information – the accounting records are automatically updated and so account balances (e.g. customer accounts) will
always be up-to-date.

Also. sales receipts. Biggest advantages: speed and accuracy. inventory lists and others can be printed in moments. Legibility. Meralco bills and telephone account. Another advantage is the ease of producing end of period reports. eliminating much of the possibility of error due to misreading a hand-written line item. With a computerized accounting system. Purchase orders. because only one entry needs to be made with a computerized system. each general ledger entry would have to be posted to the financial statements by hand. all account information is always up-to-date. sales invoices. Computerized accounting software eliminates the need to decipher poor or odd handwriting. processing cost is lower per transaction additional info: data errors will stop a batch process processing occurs without human interaction processign and output here is delayed ex. Not paricularly suited to environments where there are a large volume of transactions For some. For these people. each step in the accounting cycle must be performed With a computerized accounting system.due to the amount of data used inaaccumulate lang nya before iprocess . Ability for taxes to be computed automatically. the idea of spreadsheets. computerized accounting could be a welcome relief. Accounting and bookkeeping departments should run more smoothly and be more efficient with computerized accounting software. When using a manual accounting system. the likelihood of an incorrect entry is greatly reduced. the steps described above are completed with one entry. This makes paying quarterly or annual taxes easier since the computerized system will keep a running total of all taxes owed There are two ways to process transactions: using batches and in real time. Staff motivation. general journal books and ledger sheets is frightening. Easy document production. Because each entered transaction is automatically posted to its respective account. which makes producing balance sheets. With a manual system. The journal entries for cash and the electric company are automatically posted to their respective ledgers. Usually prinoprocess siya at a convenient time: like during evening kapag idle and PCs and networks are not busy  cost effective since by batch.Availability of information – the data is instantly available and can be made available to different users in different locations at the same time. trial balances. each computerized transaction is automatically posted to both the general journal and the respective ledgers.      Other advantages to using computerized accounting are: Instant access to accounting information. There will be less time spent on compiling reports. What could take several minutes manually takes only seconds with a computerized accounting system. and end of period financial reports as simple as selecting the desired report from the menu. So under batch time:  a group of similar transactions that are accumulated over time and then processed together  time lag exists between the event and the processing  no immediate response required processing time and output niya delayed. debit memos.

bank atm Slide 5: Electric bill Keystroke source documents transcribed by clerks to .identifies clerical errors in the batch and places them into an error file Sort Run .places the transaction file in the same order as the master file using a primary key Update Run .the original master continues to exist and a new master file is create Under real time processing: process transactions individually at the moment the economic event occurs  no time lag between the event and the processing  always reflect the current status  generally require greater resources than batch processing  oftentimes have longer systems development time it is a lot difficult to maintain  more likely to produce more accurate data  more efficient exanokes: airline reservation.changes the value of appropriate fields in the master file to reflect the transaction Backup Procedure .SLIDE 4:  are     magnetic tape for processing later Edit Run .

3. allowing for more efficient use of computer hardware and personnel time Slide 6: • • • • • • • process transactions individually at the moment the economic event occurs up to date no time lag generally require greater resources than batch processing since they require dedicated processing capacity. Applicable to certain transactions: no need to keep track of how much an employee has earned every minute of the day and doing this every two weeks is likely sufficient. mabait matulungin masipag nagaadjust di kalolokohin and easy to work with tas may mga keme pa na additional help) Requires dedicated real ime processing (dapat focus ka lang sa bawat isa. magrereflect lang sya ng minutes to weeks sa account) GIVE EXAMPLE Check clearing Di demanding (programming cost. user training) Pwede sequential files @ magnetic tape - - - - Individual atm No lag time between occurence and recording GIVE EXAMPLE atm Mas mahal cos magnetic disk 50% ng prog cost nappunta user interface (syempre kasi dapat friendly. pagdalawa dalawa ibig sabihin unfaithful ka) . Meters are read by reader and recorded onto a customer data collectiom form Computer meter readings are placed together in batches Entered in comp system Data is checked using data verfication and data validation techniques and errors are identified Valid data is used to create transax file Transax file is sorted into the same order as master file using the key field. 9. Slide 7: INFO TIME FRAME - - RESOURCES - BATCH groups MAY LAG TIME(kunware nagawa na ung transax. 10. 8. 7. however. using fewer peripheral devices than real-time processing..allows easy updating in order Using both master and transax file. such as customers. Batch processing also allows a business to schedule when the computer is to be used. these cost differentials are decreasing oftentimes have longer systems development time likely to produce more accurate data. since the input tools are readily available to users. computer time. 2.. A collection of records pertaining to one of the main subjects of an information system.1. 5. 11. cost-effective. Details of transax file are used to update the master file New master file Customers will be sent their bill New masterfile used to calculate bill for next month  Master file. customer bill is calculated and printed. products and vendors. though the cost savings is reduced as the price of peripheral devices decreases over time. 4. forgiving. employees. 6.

pagtapos na batch job processing. Only current is available .very eff processing tools but single user view environment.. discourage integration w/ biz org MODERN SYSTEM TREND : Client server based & Reaal time processing Pero meron din Mainframe based and used batch time processing Updating master files from transaction • Database Backup Procedures No back up. when time lags in info have no detrimental effect on user’s performance and op eff can be achieved by processing data in batches (magnetic disk storage) Legacy system Used to process financially significant problems. auditors need to know how to test and evaluate them Features: o Mainframe-based apps o Batch oriented o Flatfile for storage o Hierarical and network – later era legacy sts ` o Single user Highly strucutred and inflexible storage system. kasi pwede ung isa makaapekto sa iba lahat mag aadjust Immediate access is critical like travel.- - - Operational efficency Pinakaimportante?: prog at operations Shorter dev period simpler Easier to maintain by prog Use only comp capacity when prog is being run. the freed capacity can be reallocated to other app Batch processing of non critical accnts improves OE due by eliminating unnecessary activities at critical point in process (explanation shown on next chap) Efficiency vs effectiveness Consider tradeoff Cannot wait 100 passengers til transax is processed Minsan dapat 24 oras kahit di mo sya ginagamit bantay sarado May require: purchase of a dedicated comp or inv in addtl comp capaacity - - Inefficient cos pag marami account.

Jeepneys. and checks example: id numbers supermarket baggage counter 001 – first student enrolled 002 – second student . SUV. Light truck) PUV-1234 Public utility vehicles Public utility vehicle (AUV. Negative effects in an organization  Sales staff  Warehouse personnel  Accounting personnel A System with Codes • concisely represent large amounts of complex information that would otherwise be unmanageable • provide a means of accountability over the completeness of the transactions processed • identify unique transactions and accounts within a file • support the audit function by providing an effective audit trail CODING • • • • • • • • ADV: SCHEMES Sequential Codes represent items in sequential order (ascending/descending) used to prenumber source documents track each transaction processed identify any out-of-sequence business documents: Sales invoices. Taxicabs and School Bus) GOV-1234 Government vehicles Cars for government official uses (Police car and Fire truck).purchase orders.To preserve accounting records: seperate backup procedures are implemented First: a special recovery program uses the backup file to create a preupdate version of masterfile Second: the file update process is repeated isomg the previous batch of transax to restore master to its condition Data Coding Schemes • A system without codes  more space  time consuming  error prone just imagine cars kung walang plate number: pano ireregister? As in per brand model type pang ilang car Pattern Class Notes ABC-1234 Private vehicles Private vehicle not for commercial uses (Light cars.

Number Item Number Salesperson • 04 09 476214 99 Advantage • facilitate the representative of large amounts of diverse data • allow complex data structure to be represented in hierarchical form that is logical and more easily remembered by humans • permit detailed analysis and reporting both within an item class and across diff classes of items Disadvantage • • arbitrary information • • • increase store cost can lead to unnecessarily complex group codes that cannot be easily intepreted promote clerical error increase processing time and efficiency Alphabetic • • • • • • used for many of the same purposes as numeric codes can be assigned sequentially or used in block and group coding techniques may be used to represent large numbers of items can represents up to 26 variations per field arbitrary information (difficulty rationalizing the meaning of codes users have difficulty sorting records that are coded alpha Mnemonic codes • Alphabetic characters used as abbreviations. acronyms. • meaning: • Store Number Dept.   DISADV   Reconciliation of batch of transaction Sales order at end of processing (gaps may be interpreted as misplaced and iccheck nila cause and effect) ◦ arbitrary information (carry no info content beyond order about attributed of the item (type size mat loc so on) hard to make changes and insertion (kailangan baguhin din ung iba duh sequential nga e) Block Code  Represent whole classes by assigning each class a specific range within the coding scheme • Used for chart of accounts • The basis of the general ledger • Allows for the easy insertion of new codes within a block • Don’t have to reorganize the coding structure • Allows insertion of new codes without having to reorg the entire structure • Example? Chart of acc: Dagdag lang ng dagdag bes • • • Disadvantage: ◦ arbitrary informatio Info content is not readily apparent Ex. a coding scheme for tracking • sales might be 04-09-476214-99. and other . Accnt number 626 is nothing until matched against the chart of accounts wc identifies it as advertising expense GRP codes • Represent complex items or events involving two or more pieces of data using fields with specific meaning • For example.

Specific AR – di keri gawan (other nslang coding) .v • • • • types of combinations Do not require users to memorize the meaning since the code itself is informative – and not arbitrary ◦ NY = New York Ac131 – COLLEGE COURSE NUMBERING • • Adv: High degree of info represented Disadvantages: ◦ limited usability and availability.

• • IS function of GLS General ledger systems should: .

equal debits and credits) ◦ process transaction data – post transactions to proper accounts – update general ledger accounts and transaction files – record adjustments to accounts ◦ store transaction data ◦ generate timely financial report GLS Database General ledger master file ◦ principal FRS file based on chart of accounts } General ledger history file ◦ used for comparative financial support } Journal voucher file ◦ all journal vouchers of the current period } Journal voucher history file ◦ journal vouchers of past periods for audit trail } Responsibility center file ◦ financial data by responsibility centers for MRS } Budget master file ◦ budget data by responsibility centers for MR .• • • • • • • • • • • • • • • • • • • • • • • ◦ collect transaction data promptly and accurately ◦ classify/code data and accounts ◦ validate collected transactions/ maintain accounting controls (e.g..