Question

The integration of accounting systems can be extensive and can be somewhat intergrated with systems such as Quickbooks for small companies or may be restricted to manual processes in the smallest businesses. Describe some of the value and advantages of having accounting systems integrated with operating systems.

Answer 1

Accounting systems, like voucher entry, ledger posting, preparation of balance sheet, etc, were done manually before the year 1980 because of unavailability of computers. Since them computer takes the market for integrating all sorts of accounting; but still there are businesses (very small) do not use computer (like a small sole proprietorship business).

Accounting systems could be integrated with an operating system with the help of a computer followed by capable software and an accounting package.

Values and advantages are as below:

It gives value for time: This is the most important advantage. In manual process each record should be done manually; like a journal entry is made, then its ledger posting, and then its trail balance, etc. But through computer, only the voucher entry should be typed; all relevant postings and entries connected to that voucher are done automatically. Therefore, it saves time.

It gives accuracy: Since there is no manual work (except the voucher typing, and adjustments), the chance of getting wrong is very less. Therefore, such integration helps to eliminate mistakes.

It gives advance and better evaluation: The person seeing accounting data, sitting in front of computer, can see the effect from different angles like pie chart, effect on balance sheet, etc. Therefore, this is trendy and effective.