Accounts receivable, when computerized, can get your bills out the same day youve performed a service. An accounts receivable module prepares invoices and customer accounts, adds credit charges where appropriate, handles incoming payments, flags your attention to customers that are delinquent, and produces dunning notices. It allows you to have daily cash control. You get out the bills on time, yet you avoid errors such as billing a customer twice for the same item. The further advantage is that debits and credits are posted automatically to the general ledger, order entry, and in some instances inventory, once they are entered in accounts receivable.
Accounts payable, when computerized, will provide for purchase order control, invoice processing, payment selection and handling, check writing and control, cash-requirements and forecasting. It will also double-check the accuracy of the vendors invoice, and some software systems will cross-check it against the purchase order and the inventory module.
Inventory Control module has multiple functions, including tracking inventory for both costing and tax purposes, controlling purchasing (and the overall level of expenditure) and minimizing the investment in inventory (and subsequent loss of cash flow). The payroll module prepares and prints payroll checks, including all itemized deductions. It is integrated with the general ledger so you automatically set aside the correct amount for payroll deductions and withholding taxes.
With a computer, one can receive a balance sheet, income statement or other accounting reports at a moments notice. zen salomon
Shifting from manual to computerized accounting information system is a sign of advancement in accounting profession. As a practitioner I found out that generating financial reports using MAIS requires longer time of preparation considering the fact that I have to finish my reports on or before the deadlines. I don't want to stagnate in practicing my profession, so i enrolled to a learning institution to learn about computer programming. Now, I am using my own designed and programmed CAIS in generating the financial reports of my clients. It is easier now for me to generate financial reports by just making debits and credits entries in the computer. We could improve accounting practice by initiating ourselves to produce something that can elevate our profession, continuously think of advancement coupled with technology driven sytem that could help us to easily but more effective accounting practice. QUESTION: What are the control problems caused by computerization?
Question:Discuss the various responsibilities of the Accounting Department versus the Internal Audit Department to ensure that an organization's accounting system is protected from threats and and abuse.
There is no doubt that the long-standing image of the accountant as a conservative, green eye shaded, nonsocial employee who is stucked in the back of an organization has been forever shattered. Today's accounting professional is relied upon by owners and managers to identify and monitor enterprise risks (events that may cause an entity to fail to achieve its objectives); assure the reliabilityof information systems used to gather, store, and disseminate key information for decision making; and possess the requisite general business knowledge, coupled with business process measurement and assessment skills, to evaluate the state of the business enterprise and its supporting operations.Discuss the transition from a manual to computerized acccounting information system the change of focus of accounting professional (as external auditor, internal auditor, corporate accountant, and or manager).
Accounting is a language of business which is accepted in all developed and developing countries. Manual accounting implies that employees perform the whole accountingcycle manually on a periodic basis: theycalculate trial balances, journalize transactions, prepare financial statement reports and other routines. It takes much time, resources andeffort in large organizations. Computerized accounting implies that the only thing that employees do is recording transactions into the computer which processes the other steps ofaccounting cycle automatically or by a request.
In my opinion, with the advent of computerized systems and operations, the focus of the accounting professional conceptually should not change. For example for an auditor, his/her assurance and consulting services should still be centered in risk-assessment, evaluation of internal controls, and corporate governance. The distinction lies on themethodology the auditor will use to achieve his/her audit objectives. Definitely, the plan of attack of the auditor in manual accounting process compared to computerized accountingsystems will differ. In a computerized system, the auditor's focus will be mainly on security and controls. Controls such as input, processing and output controls.
To sum it briefly, the accounting professional will still use the same basic principles he learned in accounting when he goes to battle per se and but he will definitely used differentkind "weapons" in winning the war (achieving his/her objectives).