1. What is Computerized Accounting?

The computerized accounting system is an accounting data system that processes

the financial transactions and transactions as per GAAP (Generally Accepted
Accounting Principles) to produce reports as per user demands. Every accounting
system, either computerized or manual, has two (2) aspects. First, it has to work
under a set of well-defined theories known as accounting principles. Another, that
there is a user-defined structure for the maintenance of records and the creation of
reports.

the structure of storage and processing of data is known as an operating

environment that comprises of hardware as well as software in which the
accounting system, works. The kind of accounting system used defines the
operating environment. Both hardware and software are interdependent. The type
of software defines the formation of the hardware. Further, the choice of hardware
is reliant upon many factors such as the number of users, level of privacy and the
nature of multiple activities of operational departments in an organisation.

 Accuracy
 Speed
 Automation
CHARACTERISTICS OF  Storage capacity
COMPUTERS  Reduction in time
 Reduction in paperwork
 Reliable

 Speed
 Accuracy
 Reliability
 Efficiency
 Security
 Up-to-date information
 Real-time user interface
A) ADVANTAGES OF COMPUTERISED
ACCOUNTING SYSTEM  Automated document
production
 Legibility
 Lower Cost
 Quality reports
 MIS reports
 Storage and retrieval
4- Peachtree Accounting software

Peachtree is an accounting application for small and medium-sized businesses

(SMBs) made by Sage Software. Peachtree enables comptrollers and managers to
automate and manage numerous accounting tasks, like:

 Reconciling accounts payable and receivable.

 Creating financial statements, check invoices.
 Tracking banking transfers and payroll.
 Importing and manipulating spreadsheets.
 Integrating scanned documents like checks, receipts and invoices,
 eliminating paper from the accounting process.

Sage Software's release of Peachtree Premium Accounting for Construction is customized

specifically for the needs of subcontractors, contractors and operations managers in the
construction industry. Small construction companies and individual contractors both use
construction industry-specific functions like job costing, fixed assets tracking, progress billing
and advanced budgeting to control costs, track expenses and organize billing. Peachtree also
makes industry specific versions for accountants, distributors, manufacturers and non-profit
organizations.

Peachtree minimum system requirements include at least a 1 GHz processor and 512 MB of
RAM for a single user installation of Peachtree. 1.8 GHz processor and 1 GB of RAM is
recommended for multiple users. For optimal operation of either version on a given workstation,
Sage suggests 1 GB of of free disk space, Internet access, Internet Explorer 6.0 and at least
Windows 2000 SP3.

About Peachtree Accounting Software

Peachtree accounting software was created by Sage Software. Sage has been around for over 30
years and is one of the top accounting software providers in the world. They are geared
specifically at small businesses. Peachtree comes in five different versions: Pro, Complete,
Premium, Quantum, and Accountant. Peachtree Pro is the base version that has basic
functionality and is the cheapest. I use Peachtree Complete for our small business and it has
more than enough functionality. Peachtree Premium adds additional functionality with advanced
budgeting functionality and a few other tools. Peachtree Quantum is what we use at the
manufacturing company to take care of our corporate books. We used to do it for one of our side
businesses before it went out of business. Quantum adds more functionality geared more towards
accountants and larger businesses. The Accountant version is more for CPAs. For most small
businesses, you can easily get by with Pro, Complete, or Premium.

Benefits of Using Peachtree

Peachtree is a great basic accounting software that offers several benefits. Let us explore each
one and take a closer look.

Easy to Setup

One of the great advantages of using Peachtree is that you can be up and running in under a half-
hour. You do not have to know much or anything about accounting to set it up. Follow the
onscreen guide and it will take you step-by-step through the setup process that includes setting
up all of the company information, customers, vendors, inventory or service items, employees,
chart of general ledger accounts, and security. For the general ledger accounts, Peachtree offers
you the ability to choose from preloaded accounts or you can setup your own. My advice is to
only setup your own if you have a decent understanding of accounting.

Functionality

Peachtree is a fully functional accounting system. It allows you to issue invoices to your
customers, receives payments, enters payables to your vendors, print checks, pays your
employees, tracks expenses, enters journal entries, and much more. It is packed with all kinds of
different preloaded reports. Peachtree also will perform an internal accounting review that will
identify common transaction mistakes.
Invoice Entry Screen - Peachtree Complete 2011

Eric Cramer

Easy to Use

Another great benefit of using Peachtree is that you do not need an accounting degree to use it.
For most of the functions, it is as simple as finding the button on the screen and clicking on it,
which will bring up the appropriate window where you can enter all of the information that you
need to. If you are computer literate, you will be able to comfortably move around in a very short
period of time. They also offer help on their website. One of the great and scary things of
Peachtree is that depending on your security clearance, you can change anything that you want,
which is great if you need to change something. However, if you change something in a prior
period, it will change your financial results in that period. I have used several different
accounting systems in my career; none have been easier to learn than Peachtree.

Cost Effective

Another advantage of using Peachtree is that it is a cost-effective solution. Depending on the

version that you purchase according to their website, you can expect to spend anywhere from a
few hundred dollars to a few thousand dollars, which is very reasonable for the amount of
functionality and reliability that you are getting. My advice is to check your local office supply
chain store ads around the beginning of the year and you can get a much better deal on
Peachtree. The first version that I purchased for our small business, I was able to get for free with
a mail-in rebate through Staples. The funny thing is that it was not the least functional version
either. Another piece of advice is to not purchase supplies such as checks through Peachtree,
instead purchase them from your local office supply store.

A/R Report Selection Screen - Peachtree Complete 2011

Eric Cramer
1/4

Reporting Capabilities

Peachtree comes loaded with a large number of reports that are all customizable in some way.
They all can either be printed to PDF or dropped directly into Microsoft Excel. Almost all of the
reports on the screen have drill-down capability that you give you more information on what
makes up the number that you are looking at.

Peachtree is a great system for people who are starting small businesses because it is easy to use,
affordable, and has all of the functionality that you will need. The only drawback is that Sage
only supports their versions for a few years before retiring them. You can either purchase new
software when that time is up or you can keep using your current version.

This article is accurate and true to the best of the author’s knowledge. Content is for
informational or entertainment purposes only and does not substitute for personal counsel or
professional advice in business, financial, legal, or technical matters.
 

LEARN MORE ABOUT IT

Peachtree.com features trial downloads of Peachtree accounting software, along with customer
support, service resources and information about each edition.
http://www.peachtree.com/

ConstructionSoftwareReview.com's Sage Software overview includes some information about

Peachtree accounting software.
https://whatis.techtarget.com/glossary/IT-Management

This was last updated in June 2008

2. Modern computerised accounting systems are based on the concept of

database. A database is implemented using a database management system, which is define
by a set of computer programmes (or software) that manage and organise data effectively
and provide access to the stored data by the application programmes. The accounting
database is well-organised with active interface that uses accounting application programs
and reporting system. Every computerised accounting system has two basic requirements

• Accounting Framework : It consists a set of principles, coding and grouping structure of

accounting

• Operating Procedure : It is a well-defined operating procedure blended suitably with the

operating environment of the organisation. The use of computers in any database oriented
application has four basic requirements as mentioned below ;

• Front-end Interface : It is an interactive link or a dialog between the user and database-
oriented software through which the user communicates to the back-end database. For
example, a transaction relating to purchase of goods may be dealt with the accounting
system through a purchase voucher, which appears on the computer’s monitor of data
entry operator and when entered into the system is stored in the database. The same data
may be queried through reporting system say purchase analysis software programme.

• Back-end Database : It is the data storage system that is hidden from the user and
responds to the requirement of the user to the extent the user is authorised to access.

• Data Processing : It is a sequence of actions that are taken to transform the data into
decision useful information.
• Reporting System: It is an integrated set of objects that constitute the report. The
computerised accounting is also one of the database-oriented

The computerised accounting is also one of the database-oriented applications wherein the
transaction data is stored in well-organised database. The user operates on such database
using the required and desired interface and also takes the desired reports by suitable
transformations of stored data into information. Therefore, the fundamentals of
computerised accounting

Explain 'Transparency control' and 'Scalability' as features of Computerized Accounting

System.
Medium

Answer

Computerized Accounting System refers to the processing of accounting transaction

through the use of hardware and software in order to produce accounting records and
reports. CAS takes accounting transactions as inputs that are processed through
Accounting Software. The salient features required for CAS software are:

1. Transparency and Control: CAS provides sufficient time to plan, increases data
accessibility and enhances user satisfaction. With computerized accounting, the
organisation will have greater transparency for day-to-day business operations and access
to the vital information.

2. 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.

What is the difference between accounts, accounting and accountancy?

Account A statement summarizing the record of transactions in the form of credits, debits,
accruals and adjustments that have occurred and have an effect on an asset, equity, liability, or
past, present or future revenue.

Accounting is the systematic and comprehensive recording of financial transactions pertaining

to a business. Accounting also refers to the process of summarizing, analyzing and reporting
these transactions to oversight agencies, regulators and tax collection entities.

Accountancy is the practice of recording, classifying, and reporting on business

transactions for a business.

Accounting has been done manually till the 1980s, when the advent of fast computers and
easy-to-use, accurate and reliable software started.

An accounting system is a collection of processes, procedures and controls designed to collect,

record, classify and summarize financial data for interpretation and management decision-
making.

Computerized Accounting involves making use of computers and accounting software to record,
store and analyze financial data. A computerized accounting system brings with it many
advantages that are unavailable to analog accounting systems.
This article does not tackle the use of spreadsheets that are often used instead of proper
accounting software to process financial data. It is common knowledge that spreadsheets do not
provide a scalable solution for accounting purposes and therefore are a dangerous solution to
invest in.

Here are the advantages of using computerized accounting software

· Automation: Since all the calculations are handled by the software, computerized accounting
eliminates many of the mundane and time-consuming processes associated with manual
accounting. For example, once issued, invoices are processed automatically making accounting
less time-consuming.

· Accuracy: This accounting system is designed to be accurate to the minutest detail. Once the
data is entered into the system, all the calculations, including additions and subtractions, are done
automatically by software.

· Data Access: Using accounting software it becomes much easier for different individuals to
access accounting data outside of the office, securely. This is particularly true if an online
accounting solution is being used.

· Reliability: Because the calculations are so accurate, the financial statements prepared by
computers are highly reliable.

· Scalable: When your company grows, the amount of accounting necessary not only increases
but becomes more complex. With computerized accounting, everything is kept straightforward
because sifting through data using software is easier than sifting through a bunch of papers.

· Speed: Using accounting software, the entire process of preparing accounts becomes faster.
Furthermore, statements and reports can be generated instantly at the click of a button. Managers
do not have to wait for hours, even days, to lay their hands on an important report.

· Security: The latest data can be saved and stored in offsite locations so it is safe from natural
and man-made disasters like earthquakes, fires, floods, arson and terrorist attacks. In case of a
disasters, the system can be quickly restored on other computers. This level of precaution is
taken by Clever Accounting.

· Cost-effective: Since using computerized accounting is more efficient than paper-based

accounting, than naturally, work will be done faster and time will be saved. When one considers
that Clever Accounting, one of the latest online accounting solutions, starts at a low monthly
subscription (check out pricing here), then computerized accounting really becomes a no-brainer.

· Visuals: Viewing your accounts using a computer allows you to take advantage of the option to
view your data in different formats. You can view data in tables and using different types of
charts.
Computerized Accounting represents a technological advancement in the field of business
accounting. Do you use computerized accounting in your business? If yes, how important are the
above advantages for the continued survival of your business?

Click here to start a free 30 day trial of Clever Accounting, an online computerized accounting
software.
2. What is computerized accounting system PDF?
A computerised accounting system is an accounting information system that processes the
financial transactions and events as per Generally Accepted Accounting Principles (GAAP) to
produce reports as per user requirements. ... First, it has to work under a set of well-defined
concepts called accounting principles.

9 Advantages to Using Computerised Accounting Systems

 Automation. To make sure that all calculations are correct and accurate it is important to
use something other than pen and paper. ...
 Data Access. Using the software becomes easier and gives you easier access to data files
when you need them. ...
 Accuracy. ...
 Reliability. ...
 Speed. ...
 Security. ...
 Scalable. ...
 Visuals.

4.