Components of a Computerised Accounting System

A Computerised Accounting System is not just the accounting software alone — it is a combination of several elements working together, and the Balbharati Std XII textbook identifies these as its main components.

1. Hardware. The physical computer equipment on which the accounting software runs — the computer (CPU, monitor, keyboard, mouse), storage devices, printer, and, where the system is networked, the cabling and network devices connecting multiple computers in an office.

2. Software. The accounting program itself (the 'application software') that actually performs the accounting functions — accepting vouchers, maintaining ledgers, and generating reports — running on top of the computer's operating system (the 'system software').

3. People (Users). The persons who operate the system — data-entry operators who enter vouchers, accountants who review ledgers and reports, and the system administrator who manages user access and backups. A computerised system is only as reliable as the people who use it correctly.

4. Procedure. The set of instructions and rules that govern how the system is to be used — for example, the sequence in which a voucher must be entered and authorised, when a backup must be taken, and who is permitted to alter which master data.

5. Data. The raw accounting facts fed into the system — the details of each transaction (date, accounts involved, amount, narration) entered through vouchers, which the software then stores, processes and presents as information. …