Q.Explain the features of Computerised Accounting System.

A Computerised Accounting System (CAS) uses a computer and accounting software (e.g. Tally, GNUKhata) to record and process transactions. It is faster, more accurate and more reliable than manual accounting, updates all related accounts automatically, and generates reports on demand while keeping data secure.

Features of a Computerised Accounting System

1. Speed — A large volume of transactions is recorded and processed almost instantly, far quicker than manual posting.
2. Accuracy — Calculations (totals, balances, taxes) are done by the software, so arithmetical errors are practically eliminated once data is entered correctly.
3. Reliability — The computer performs repetitive tasks consistently without fatigue, giving dependable results every time.
4. Automatic updating (integration) — A single entry simultaneously updates the ledger, trial balance and financial statements, so all related accounts stay in agreement in real time.
5. Large storage and easy retrieval — Years of accounting data can be stored in a small space and any record can be located and displayed within seconds.
6. Instant reporting — Trial balance, Trading and Profit & Loss Account, Balance Sheet and other MIS reports can be generated at any moment at the click of a button.
7. Scalability — The same system can handle a growing number of transactions and additional users without a change in method.
8. Data security — Access is controlled through user IDs, passwords and rights, so confidential data is protected from unauthorised use; back-ups guard against loss. …