Answer:
A computerised accounting system records, processes and stores accounting data with the help of a computer and accounting software. Its features are:
- Speed: Large volumes of transactions are recorded and processed very quickly; ledgers, trial balance and final accounts are prepared instantly.
- Accuracy: Once data is entered correctly, calculations, totalling and posting are free from arithmetical errors.
- Automatic posting and reports: A voucher entered once is automatically posted to all the related ledger accounts, and reports such as trial balance, profit and loss account and balance sheet are generated by the software.
- Up-to-date information: Accounts are always updated, so the latest position of cash, debtors, stock and profit is available at any time.
- Storage and retrieval: Data is stored in less space on hard disks or cloud and any record can be searched and retrieved easily.
- Security: Passwords, user rights and backups protect the data against unauthorised access and loss.
- Flexibility and scalability: The same software can handle growing volumes of transactions and can be customised to the needs of the business (GST, payroll, inventory).
- Economy: It saves time, labour and stationery, and reduces the cost of maintaining accounts in the long run.
- Audit trail and MIS: Every entry can be traced, and management information reports help in decision making.
