Q.Define Computerised Accounting. Explain its future.

Computerised accounting is the use of a computer and accounting software to record, classify, summarise and report financial transactions in place of manual books of account. Its future is one of rapid growth — cloud-based, GST-compliant, automated and increasingly AI-assisted systems are replacing manual bookkeeping across businesses of every size.

Meaning

A computerised accounting system records accounting data through specialised software. The user enters each transaction (a voucher) once; the software automatically posts it to the relevant ledgers, prepares the trial balance, and generates the trading account, profit and loss account and balance sheet, along with reports like day-books, outstanding statements and tax returns. Popular packages include Tally, Busy, Marg and many cloud-based tools.

Its future

• Cloud accounting lets records be maintained online and accessed from anywhere, with automatic backups.
• Statutory compliance — modern software is GST-ready and files returns directly, which almost forces businesses to computerise.
• Automation and integration with banking, billing and inventory removes repetitive manual entry and reduces errors.
• Real-time reporting gives owners instant financial information for decisions. …