Applications of Computers in Accounting • Reporting : Finally, reports can be prepared on the basis of the required information content according to decision usefulness of report. A simple computerised accounting system accepts the complete transaction data as input; stores such data in computer storage media (say hard disk) and retrieves the accounting data for processing as and when required for generating an accounting report, as output. The input-process-output diagram shown below indicates as to how accounting software translates data into information. This processing of data is accomplished either through Batch Processing or Real-time Processing.
Batch Processing applies to large and voluminous data that is accumulated offline from various units: branches or departments. The entire accumulated data is processed in one shot to generate the desired reports according to decision requirement. Real-Time Processing provides online outcome in the form of information and reports without time lag between the transaction and its processing. The accounting reports are generated by query language popularly called Structured Query Language (SQL).
It allows the user to retrieve report relevant information that is capable of being laid out in pre-designed accounting report. Accounting software may be structured with such components as provide for storage and processing of data pertaining to purchase, sales, inventory, payroll and other financial transactions (refer figure . ). .
Features of Computerised Accounting System Accounting software is used to implement a computerised accounting system. The computer accounting system is based on the concept of databases. It does away with the concept of creating and maintaining journals, ledger, etc. which are essential while working with manual accounting system.
Typicaly computerised accounting system offers the following features : • Online input and storage of accounting data. • Printout of purchase and sales invoices. • Logical scheme for codification of accounts and transactions. Every account and transaction is assigned a unique code.
• Grouping of accounts is done from the very beginning. • Instant reports for management, for example – Aging Statement, Stock Statement, Trial Balance, Trading and Profit and Loss Account, Balance Sheet, Stock Valuation, Value Added Tax (VAT), Returns, Payroll Report, etc. © NCERT not to be republished