Computerized Processing Systems
You almost certainly noticed that much of the material in this chapter involves rather mundane giving out. Once the initial journal entry is made, the data are merely being manipulated to produce the ledger, trial balance, and the financial statements. No doubt then, that some of the first business applications and implementations that were computerized many years ago connected to transaction processing. In short, the merely "analytics" relate to the initial transaction recordation. All of the following steps are merely mechanical, and are aptly suitable to computerization.
Number of companies produces accounting software. These packages range from the simple to the complex format. Some basic goods for a small business may be purchased for under $100. In large organizations, millions may be used up hiring consultants to install large enterprise-wide parcels. Recently, some software companies have even presented accounting systems maintained on their own network, with the clientele utilizing the internet to enter data and make their reports.
What do they Look Like
As you may suppose, the look, feel, and function of software-based packages varies significantly. Each company's invention must be studied to understand its unique attributes. In general, accounting software packages are shown as follows:
It is a very typical data entry screen. It should seem quite familiar. When the data are input, The subsequent processing (posting, etc.) is entirely programmed.
Despite each product's own look and feel, the persons first and foremost responsibility for the maintenance and operation of the accounting function must still understand accounting fundamentals such as those introduced in this chapter: accounts, debits /credits, journal entries, etc. Without that intrinsic knowledge and understanding, the data input decisions will quickly go off track, and the output of the mechanized accounting system will become terribly trashed. So, while it is safe to suppose that you will probably be working in a computerized accounting surrounding, it is equally true to say that you should first come to recognize the basic processing described in this and subsequent chapters. These principles will evidently guide you toward successful implementation and use of most any computerized accounting creation, and the reports they produce.
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