Components of a Computerised Accounting System

5. Components of a Computerised Accounting System

A Computerised Accounting System is made up of five components, working together:

1. Hardware — the physical computer equipment (computer, printer, and any networking equipment) on which the accounting software runs.
2. Software — the accounting package/program itself, which processes the data entered and produces reports.
3. People — the accountants, data-entry operators, and any staff who use the system; the system is only as reliable as the people entering and interpreting its data.
4. Procedures — the business's own rules for how transactions are recorded, who is authorised to enter or approve which vouchers, and how often backups are taken.
5. Data — the actual accounting transactions (vouchers) entered into the system, which the software processes into ledgers and reports. …