Q.What is Automated accounting system ?

An automated accounting system uses accounting software and computers to record a transaction once and then automatically carry it through posting, totalling and reporting — cutting manual work and errors.

In the Tamil Nadu HSC Class-12 Accountancy syllabus, a Computerised (Automated) Accounting System is the use of accounting software such as Tally along with computer hardware to maintain the books of account.

Key points:

• One-time entry, automatic processing — the user records a voucher/transaction once; the software then automatically posts it to the correct ledger accounts, updates balances and prepares the trial balance and final accounts.
• Built on the same double-entry principles as manual accounting, but the arithmetic, posting and carrying-forward are done by the machine.
• Outputs on demand — day book, ledgers, trial balance, Trading and Profit & Loss Account, Balance Sheet and management reports are generated instantly and accurately. …