Mrs.

Meenakshi
PGT Commerce
JNV Mungeshpur Delhi - 39
 OBJECT OF
STUDY

▪ To study about computerized

accounting.
▪ To study about manual vs
computerized accounting.
 INTRODUCTION
⦿A computerized accounting system is a
software program that is stored on a
company's computer, network server, or
remotely accessed via the Internet and
it can be a great benefit for a business.
It can help streamline accounting steps
and help minimize errors.
 COMPUTERIZED
ACCOUNTING
▪ Labor Saving:
Labor saving is the main aim of introduction of computers in
accounting. It refers to annual savings in labor cost or
increase in the volume of work handled by the existing staff.

▪ Time Saving:
Savings in time is another object of computerization.
Computers should be used whenever it is important to save
time. It is important that jobs should be completed in a
specified time such as the preparation of pay rolls and
statement of accounts. Time so saved by using computers
may be used for other jobs.
▪ Minimization of Frauds:
Computer is mainly installed to minimize the
chances of frauds committed by the employees,
especially in maintaining the books of accounts
and handling cash.

▪ Effect on Personnel:
Computer relieves the manual drudgery,
reduces the hardness of work and fatigue, and
to that extent improves the morale of the
employees.
▪ Accuracy:
Accuracy in accounting statements and books
of accounts is the most important in business.
 COMPUTERIZED
ACCOUNTING
▪ The manual system of recording accounting
transactions requires maintaining books of
accounts such as journal, cash book, special
purpose books, and ledger and so on. From these
books summary of transactions and financial
statements are prepared manually.
▪ The advanced technology involves various
machines, which can perform different
accounting functions, for example a billing
machine. This machine is capable of computing
discount, adding net total and posting the
 ACCOUNTING
PROGRAM
▪ Inputting invoices, credit notes, receipts
and payments

▪ By entering one transaction all of the double

entry is completed for you. (Because a
computerised accounting system is fully
integrated)

▪ There may be a separate payroll program

▪ Generating Management reports

 COMPUTERIZED
ACCOUNTING
SYSTEM
Advantage Dis-advantage
s s
▪ All banking activities ▪ Cost of
are done by using computerized
computer system system is very high
▪ Transaction can be ▪ High cost for
done anywhere and maintenance
anytime ▪ The system can be
▪ It takes shorten time infected
for any banking by viruses
process ▪ Member of workers have
to be reduce as they are
no longer needed

ACCOUNTIN
▪ Manual accounting G
is the ▪ In this system of
system in which we keep
physical register of journal
and ledger for keeping the
records of each
transaction.
▪ In manual accounting, all
calculation of adding and
subtracting are done
manually.
COMPUTERIZED
accounting, we use
computer and different
accounting software for
digital record of each
transaction.
▪ In computerized
accounting, our duty is to
record the transactions
manually in the database.
All the calculations are
done by computer system.
▪ In manual accounting, we
check the journal and then
we transfer figures to
related accounts' debit or
credit side through manual
posting.
o Both adjustment journal
entries and its posting in
the ledger accounts will be
done manually one by one.
▪ We have to make the financial
statements manually by
careful transferring trial
balance's figures in income
statement and balance sheet.
▪ Computerized accounting
system will automatically
process the system and will
make all the accounts ledgers
because we have pass the
voucher entries under its
respected ledger account.
o Only adjustment entries will pass
in the computerized accounting
system, posting in the ledger
accounts will be done
automatically.
▪ We need not prepare
financial statement
manually, financial
statements will become
automatically.
 Developments ofcomputer
accounting
Specialized Software
❑ In the most general terms, CAATs can refer
to any computer program utilized to
improve the audit process.(Computer
Assisted Auditing Techniques)

❑ Generally, however, it is used to refer to

any data extraction and analysis software.

❑ This would include programs such as

spreadsheets (e.g. Excel), databases (e.g.
 CONCLUSION
S
▪ you would have realized that although
computerized accounting systems are
labour
⦿ -saving, it is not without disadvantages.
An accountant is not made redundant
with the introduction of computerized
accounting but his job scope is
redefined such that he is able to add
value to the managing of the
organization concerned.