Computerized Financial Accounting – Methods and Practices – Use of software in Accounting

The human mind can only handle a finite number of items at a time. On the other side, the digital machine can be configured to compare, measure, calculate and analyze thousands of readings over an incredibly short period.

These days, the computer industry has become the fastest-growing market. The selling of mainframe computers is rising every day ( The computer industry was further stimulated by the advent of small, inexpensive, reliable, and very light minicomputers and microcomputers. These are regularly used for process control, output testing, scientific instrument tracking, warehouse inspection systems, automotive testing and assessment systems, medical monitoring, etc.

Computers are also being used widely in the administration of the office to do routine clerical work ( Today, most large and medium-sized enterprises are almost entirely dependent on their computers. The routine use of computers is given below:

Payroll, Billing, MIS Inventory Management Program

Computers are commonly used in accounting, and there is a multitude of computer applications for MIS, accounting, and CRM. HiTech Financial Accounting is one such application tailored to consumers in many enterprise and service segments.

Payroll and employees documents

Payroll accounting was the first business field to have been widely computerized. Calculation of wages or salaries requires various variables that relate to each employee’s specifics, such as gross pay of employment, individual deductions, employees’ tax liabilities, and so on. These facts can be held in machines and processed monthly to generate payslips for employees.

Control of the stock

The machine helps to exercise the type of inventory management required by the organization. Updates sales and purchase records, calculate the optimal re-order amounts for various products, and prints stock lists if desired ( The device can be built in such a way that it activates orders when the stock level exceeds the order point for different material items, checks certain items that are moving slowly, or offer a list of over-stock items.

Reports of revenue accounts

Programming can be conducted on any revenue accounting system. The machine can pin default debtors, set the correct credit limit for each debtor, and hold stores in the ledger.