Q.Define Computerised Accounting. Explain its features.

Computerised accounting is the maintenance of accounts using accounting software on a computer, where data is entered once and the system automatically processes and reports it. Key features: accuracy, speed, automatic ledger posting, large storage, data security, flexible reports and scalability.

Definition. A Computerised Accounting System is an accounting information system that uses computers and specialised accounting software (for example Tally, Busy, Marg) to collect, record, store, process and report financial transactions. The accountant enters a transaction once through a voucher, and the software automatically posts it to all relevant ledgers and prepares the trial balance and final accounts.

Features of computerised accounting:

1. Accuracy — once the correct data is entered, calculations and postings are error-free.
2. Speed — a very large number of transactions are recorded and reports produced quickly.
3. Automatic posting and updating — entering one voucher updates all related accounts instantly; no separate posting is needed.
4. Large storage and easy retrieval — years of data are stored compactly and can be retrieved in seconds.
5. Readymade reports — trial balance, Profit and Loss Account, Balance Sheet and other reports are generated on demand.
6. Data security — access is protected by passwords and user rights, and data can be backed up. …