Computerised Accounting System
A computerised accounting system (CAS) refers to use of computers in performing accounting functions with the help of application softwares i.e. accounting softwares. It eliminates necessity to create and maintain journals and legers. It integrates various transactions like inventory, sales and purchasing. The basic requirement of CAS are accounting framework and operating procedure. Database is an application that manages data and allows fast storage and retrieval of data, for example ORACLE & SQL SERVER. Database varies with basic requirements like front end i.e., Developer/2000, Visual Basic etc, and back end interface i.e., Microsoft access, data processing i.e., segregating numbers into relevant groups, aggregating them, taking ratios, plotting etc. and reporting system. Need of computerised accounting varies with numerous transactions, instant reporting, flexible reporting; reduction is paper work, on-line facility, accuracy and security etc.
CAS varies with various advantages such as, high speed, accuracy, up-to-date information, storage and retrieval etc, while CAS has many limitations also like high cost of training, staff opposition system failure, computer frauds and crimes etc. Grouping of accounts is the process of coding the account heads in the manner that accounts appear in the financial statements at appropriate places. Capital receipts and expenditures appear in the balance sheet while revenue receipts and expenditures appear in the trading and profit & loss account. Process of grouping includes giving a code to each main head, sub-head and individual account heads. Accounting software is the application software that records and processes accounting transactions within functional modules. It functions as an accounting information system and may be purchased from third party and developed in-house by the company. Accounting software packages classified into readymade software, customised software and tailor made software.