Computer is an important part of an accounting system. Computerized accounting systems are important to business in various ways. Computers helps businesses by making their staff efficient , productive and also save their valuable time. It helps to maintain business and all financial information for the business is well-organized.
1) Time and cost savings :
Using a computerized accounting system saves companies time and money. The use of computer makes inputting accounting information simple. Business transaction are entered into the system and the system posts transactions accordingly.
2) Organization :
A computerized accounting system help business to stay organised. When information is entered into the system. it makes finding the information easy. Employees can see any financial information whenever it is needed.
3) Storage :
Storing information is vital to a business. In Computerized System data cam be stored quickly. after information is entered into the system the information is stored indefinitely. Companies perform backups on the system regularly to avoid losing any information.
4) Distribution :
Computerized accounting systems Allow companies to distribute Financial information easily. Financial statements are printed directly from the system and are distributed internally and externally to those needing the information.
5) Management reports :
Data within the computerized accounting system is accurate and up-to-date. Management can request online report in real-time and that makes management decisions more reliable and timely.
6) Regulatory Compliance :
Reports are required on a regular basis from various government Agencies. a computer system can organize their data and reports to comply with this statutory requirements savings time.