Evolution of technology in Accounting

Evolution of technology in Accounting

Image Description
General
Image Description
Created By Admin Last Updated Tue, 08-Dec-2020

By the evolution of technology, the computers completely revolutionized the way the business was conducted. We now use them for all purposes, including accounting. Until now the accounting was done manually. Businesses had to hire accountants and book keepers for accounting purposes of their company. At that time the transactions record, bookkeeping, preparing statements all such activities are performed manually on papers by those full time or part-time accountants. With the advancement in technology, modern computerized systems come into existence in the accounting field and make it easier. The user simply had to enter the accounting data and the records are kept in the computers. These technological innovations make the sophisticated transactions or accounting easier and more accurate than before.

A typical digital or computerized accounting system contains- the data which is inputted and stored online then the accounts, transactions and records get unique codes for identification. The users can print statements like bills. These financial statements can be produced instantly and automatically.

Advantages of Computerized accounting systems- Computerized systems allow for greater efficiency in performing specific tasks both more accurately and more rapidly than doing the same task using, for example, a pencil and paper or a pencil and ledger book. Computerized systems also offer storage capacity efficiency.

The advantage of computerized accounting can be seen in Transaction Processing System (TPS) in which the records, correction, validates, processes, storing, displaying information etc are recorded and processed. The technology made easy to enter the data, process it, stores it and reporting of it to the user.

The need of computerized accounting arises to increase the speed, accuracy and reducing the cost of handling business transactions. Computers have the ability to store and records a large number of transactions. Thus technology in accounting plays a vital role in fastening the work with more accuracy than manually.