Computerised Accounting System - Definition, Components, Advantages, Limitations

Defining Computerised Accounting

A computerised accounting system is a platform that processes financial transactions and events according to the GAAP ( Generally Accepted Accounting Principles ), thereby generating reports based on the user's requirements. Every accounting system, whether computerised or manual, has two key aspects. Firstly, it operates under a set of well-established theories known as accounting principles. Secondly, it has a user-defined framework for record-keeping and report generation.

In a computerised accounting system, the structure of data storage and processing is referred to as an operating environment. This environment includes both hardware and software, which work together to facilitate the accounting system. The nature of the accounting system used determines the operating environment. The choice of hardware is influenced by factors such as the number of users, the degree of confidentiality required, and the operations of different departments within an organisation.

The Intricacies of a Computerised Accounting System – A Comprehensive Guide

The above discussion provides a comprehensive understanding of the concept of a computerised accounting system. Stay tuned for more insights and in-depth discussions on various topics.

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