GROUP 1

Cruz, Marvie Ned Xigrid

Garcia, Claira Lauryn
Pagkaliwangan, Prescious
Palad, Kathleen Ginmer
Business Realization
•Accounting has been done
manually till the 1980s,
when the advent of fast
computers and easy-to-use,
accurate and reliable
software started.
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.
Advantages of using Computer Accoun
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.
 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.
 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.
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.
 Need for System
Development (Computer
Accounting)
Accounting Information system
(AIS)
• is a system of collecting, storing and processing
financial and accounting data that are used by
decision makers.

• An accounting information system is generally a

computer-based method for tracking accounting
activity in conjunction with information technology
resources.
Developing Accounting System

• An ideal accounting system does not

come into force automatically. It is to
be very much carefully planned,
designed, arranged, managed and
modified.
• In developing an ideal accounting system the
following four steps are necessary;

•Analysis.
•Design.
•Implementation.
•Follow-up.
Analysis

• At first, it is to be ascertained what information is

necessary for internal and external users. An
information analyst is to identify sources of
necessary information for collecting data and
prepare reports and preserve them properly.
• Strength and weakness of an existing information
system are to be identified for its analysis.
Design

• For formulating a new accounting system designing

of forms and documents, sorting of the method
and working process, preparing a statement of
work, collecting techniques of control, preparing
reports and selecting equipment are necessary.
• Slight changes are required for redesigning existing
accounting information system
Implementation

• For the implementation of a new or modified

accounting information system, necessary
documentary evidence of information, the process
of methods and installation of necessary
equipment etc. are to be activated.
• Employees concerned are to be given training and
they are to be monitored closely.
Follow-up
• After the implementation of the
accounting information system and
making it workable, its weakness and
breakdown are to be monitored very
closely and its effectiveness and design
are to be compared with organizational
objectives.
• If needed changes are to be brought in its
implementation process of design. The
above-mentioned steps represent the life
cycle of an accounting information system.
This suggests that some accounting
information systems are always
unchangeable.
Business Needs
• Business needs are gaps between the current
state of a business and its goals. Needs are the
basic drivers of change in an organization that
are identified as requirements and
implemented by hiring people, implementing
projects, transforming operations and
purchasing goods. The following are common
types of business need.
• Talent
People with the ability to achieve
the objectives of a firm. For example, a design
director who can develop products that sell well.
• Infrastructure
Foundational services
suchas networks and computing.
• Facilities
Facilities such as offices, factories, warehouses,
data centers, retail locations and product
showrooms.
• Structures
Organizational structures such as departments
and teams each with their
own objectives and capabilities.
• Organizational Culture
The norms, habits and values of a firm. For
example, a business may need to transform its
culture to be more creative and accepting of
change.
• Intellectual Property
Valuable knowledge that is owned by a firm
including trade secrets and patents.
• Products & Services
The value that a firm offers to customers.
• Customer Experience
The experience that a firm offers to customers.
For example, a business that needs to improve
the friendliness and diligence of its call center
services in order to address poor customer
satisfaction
• Machines
Physical machines that perform work.
• Tools
Physical tools that people use to perform work
such as a mobile device or hammer.
• Systems
Software that automates work.
• Applications
Software that people use as a tool to
improve productivity.
• Data
Information that is designed to be used
by machine. For example, a billing
database that is used to generate
customer invoices each month.
• Accounting software makes it easier for you to
track your business's financial health and
monitor the money moving in and out of your
accounts. It can create invoices, track expenses
and generate a variety of reports that help you
analyze your business's performance from
various angles. Many applications can also help
you track your bills and manage your inventory
or projects.
• Accounting without computers presents a
high risk for human error. Accounting software
allows businesses to simply input their
financial data and instantly see gains and
losses. All necessary tax reports are available
the moment the data is entered. Using
computers for invoicing, managing expenses
and calculating payroll is vital for ensuring
financial data is as accurate as possible.
 Business Value
Assessment on
Computer Accounting
Business Value Assessment are
designed to assess the value of a
specific workforce service, delivered
at sufficient scale to affect a
company's operations or financial
bottom-line, and one business at a
time.
 Business Value Assessment:
Prior researches have shown that
accounting information system
adoption does increased firm’s
performance, profitability and
operations efficiency. It also says that
computer accounting is of great
importance and has great value to
businesses, organizations and to the
economy.
 Business Value Assessment:

Speed and accuracy of

operation
Ability to see the real-
time state of the
company’s financial
position
Availability of information
Reduce frustration
After understanding and
assessing the business needs, we
can say that establishing
Computer Accounting would be
of great help and does improve
every business operations in
making it accurate, fast and easy.