The Rationale of Computerized Accounting Information Systems

Accounting is the process whereby companies record, report and analyze financial information. While accounting systems have been around for hundreds or years, the introduction of business technology and computerized accounting information systems radically changes the playing field.

Facts

Computerized accounting information systems follow the same logic of ledgers, journal, reports and statements in a manual system. Computerized systems simply consolidate posting functions and other basic tasks into a "behind the scenes" system. Companies can also generate reports and financial statements easier, allowing for better performance management reviews.

Function

Companies can use computerized accounting information systems to gather information quicker and create stronger internal controls. Internal controls protect financial information from abuse by employees and other individuals. The ability to restrict access to sensitive information is a key feature of computerized systems.

Effects

Using a computerized accounting information system allows employees to process financial information much more quickly than with manual systems. This also allows business owners and managers to have more information at hand when making business decisions and changing operations.

References

• Google Books: Accounting