The impact of computers in accounting
The impact of computers in accountingIn our society today, computer technology plays an important role in many form of business, especially in the field of accounting. As technology advances, not only does the use of computers penetrates individual's everyday life, it also helps to mange and improve many business operations from service, manufacturing to retail.
Ken, an accounting graduate, works as an accounting clerk at Advance Manage, a service operation located in Markham, Ontario. The small business is in the form of a partnership, and has only 5 employees. Advance management mainly provides service for property owners who are seeking proper management for their housing estate such as small plazas and condominiums. Since Ken is aware of the important of the computer skills in the job market, he devotes many time self-studying his PC at home. With his expertise in bookkeeping and his adequate knowledge of computers, he finds that computerized accounting is easy to work with and is very timesaving.
With computer technology changing at such fast pace, many businesses try to keep up by upgrading computer system constantly in order to stay competitive. In the example of Advance Management; the computer equipment they have is quite advances. For example, they own 3 computers of which one is solely for accounting purposes. The system includes a CPU Pentium II with 300 MHz microprocessor, a 64 MB SD Ram on board, a 56 K modem, a 32�CD-ROM, and also a 4.3 GB Hard Disk. This high quality equipment has bought recently and they have already contributed a lot in improving the business' operation by making better works done more quickly.
Advance management also has its own great software to match with its advances computer system. The software is specifically designs for the use of property managing and is called AFEX. This accounting software for property management has been in uses for almost a year and is a very helpful in working with the company's accounting routine. The company uses the accounting software to a great extent. All Account Receivables, Account Payables, payrolls and financial statements are done conveniently on the computer. For Account Receivable, by entering all information (ex. Account number, name, addresses, rental payments, and lease term) into the database, an account receivable ledges is formed. As each center's pay his/her rent monthly, the amount is automatically debited into the individual's rent receivable account. The spreadsheet form of software shows updated amount outstanding, amount and date paid, and time remaining on lease term of each renter accurately.
For the account payable, information on the vendor's must be input into...
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