Computerised Accounting System with Real Time Software Example


Concept Behind Computerised Accounting System

A computerised accounting system is an accounting information system that processes the financial transactions and events as per Generally Accepted Accounting Principles (GAAP) to produce reports as per user requirements. Every accounting system, manual or computerised, has two aspects. First, it has to work under a set of well-defined concepts called accounting principles. Another, that there is a user-defined framework for maintenance of records and generation of reports. In a computerised accounting system, the framework of storage and processing of data is called operating environment that consists of hardware as well as software in which the accounting system, works. The type of the accounting system used determines the operating environment. Both hardware and software are interdependent. The type of software determines the structure of the hardware. Further, the selection of hardware is dependent upon various factors such as the number of users, level of secrecy and the nature of various activities of functional departments in an organisation. Precisetotal accounting software follows GAAP norms to do calculation . And it is made using advance technology due to which it is free of hardware . It is Based on cloud technology user can do entry from any device . You don't need any software to use it . As it is on cloud you can made entries through your computer browsers.

Take the case of a club, for example, where the number of transactions and their variety is relatively small, previously you need a Personal Computer with standardized software have been needed. Now you need just a device to make entries with cloud accounting software precisetotal You don't need full personalized computer. Entries can be make through tab or mobile phones . However, for a large business organisation with a number of geographically scattered factories and offices, more powerful computer systems supported by sophisticated networks were required previously to handle the voluminous data and the complex reporting requirements. In order to handle such requirements, multi-user operating systems such as UNIX, Linux, etc. were required which causes more costly device which indirectly increases companies budget . But with precisetotal cloud accounting . Computer Accounting Becomes device independent even less costly device and internet can be used to make entries .

Modern computerised accounting systems are based on the concept of database. A database is implemented using a database management system, which is define by a set of computer programmes (or software) that manage and organise data effectively and provide access to the stored data by the application programmes. The accounting database is well-organised with active interface that uses accounting application programs and reporting system. Every computerised accounting system has two basic requirements;

  1. Accounting Framework : It consists a set of principles, coding and grouping structure of accounting.
  2. Operating Procedure : It is a well-defined operating procedure blended suitably with the operating environment of the organisation.

The use of computers in any database oriented application has four basic requirements as mentioned below ;

  1. Front-end Interface : It is an interactive link or a dialog between the user and database-oriented software through which the user communicates to the back-end database. For example, a transaction relating to purchase of goods may be dealt with the accounting system through a purchase voucher, which appears on the computer’s monitor of data entry operator and when entered into the system is stored in the database. The same data may be queried through reporting system say purchase analysis software program . Front End Interface in precisetotal cloud accounting software in made from AngularJS which makes it as efficient as desktop accounting packages.
  2. Back-end Database : It is the data storage system that is hidden from the user and responds to the requirement of the user to the extent the user is authorised to access . Precisetotal cloud accounting gave user full rights to see its database and even take backup of there own database in there premises .
  3. Data Processing : It is a sequence of actions that are taken to transform the data into decision useful information.
  4. Reporting System: It is an integrated set of objects that constitute the report. The computerised accounting is also one of the database-oriented applications wherein the transaction data is stored in well-organised database. The user operates on such database using the required and desired interface and also takes the desired reports by suitable transformations of stored data into information. Therefore, the fundamentals of computerised accounting 494 Accountancy embrace all the basic requirements of any database-oriented application in computers. Accordingly, the computerised accounting system has the above four additional requirements. You can format your own Reports in more professional in precisetotal cloud accounting software by using format module of precisetotal

Precisetotal Cloud Accounting software is a free accounting software mainly used by small business owners and middle scale companies . To Sign up for free you can go to this link

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