Meaning of Computerised Accounting System

1. Meaning of Computerised Accounting System (CAS)

A Computerised Accounting System (CAS) is a system of maintaining a business's accounting records using computer software, instead of manually writing them into physical books of account. The underlying accounting principles — the double-entry system, the classification of accounts, the preparation of Final Accounts — remain exactly the same as in manual accounting; only the MEDIUM and METHOD of recording, calculating, and reporting change.

In a CAS, a user enters a transaction once (usually as a "voucher" — a source document like a receipt, payment, purchase, sale, or journal entry) into the software. The software then automatically:

1. Updates every ledger account the transaction affects.
2. Maintains a continuously up-to-date Trial Balance.
3. Makes the Trading Account, Profit and Loss Account, and Balance Sheet available on demand, always reflecting every transaction entered so far. …