Computerized accounting system
The computerized accounting system is an accounting data structure that is charged with the duty of processing the fiscal transaction and actions as per Generally Accepted Accounting Principles (GAAP) to come up with end information as per user necessities. These systems work under two aspects with the first one being that it has to operate under a composition of well-articulated notion referred to as accounting ethics. Also, that there is a user-defined aspect for protection of records and accessing of information (Alshbiel & Al-Awaqleh, 2011). One of the qualities in a computerized accounting system is that it has to have a structure of storage and processing of information referred to as operating setting that is composed of hardware and software in which the system works.
It is significant to acknowledge that sage 50 accounting is one of the widely used business management software subscription that is centered on a product published by the Sage limited and typically sold in the United States. This system will be of help a business that operates accounting dealings. Some of the positive and negative aspects of sage 50 accounting software versus a manual method of accounting are that;
- Recording: the system allows smooth and protected records of all the business information in a database that can be protected from any unauthorized access whereas, in a manual accounting, all financial transactions are done in books that can be easily stolen or subjected to manipulation.
- Classification: when using a manual accounting system, all transactions made within the business are typically recorded in the books of original entry that are additionally classified through redistributing it into the ledger accounts resulting into business information fraudulence. In a computerized system, no such fraudulence can be made to lead to any clarification of the transaction (McLuckie et al. 2011).
- Financial Statements: in the manual accounting system, the grounding of fiscal statements typically pre-supposes the availability of the trial balance. However, in the computerized accounting system, the requirement does not exist.
Alshbiel, S. O., & Al-Awaqleh, Q. A. (2011). Factors affecting the applicability of the computerized accounting system. International Research Journal of Finance and Economics, 64, 36-53.
McLuckie, T. M., Ross, S. E., Belay, T., Nestor, S., Valliani, A., George, B., … & Lapera, A. C. (2011). U.S. Patent No. 7,983,971. Washington, DC: U.S. Patent and Trademark Office.