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A Comparative Analysis of Computerized and Manual Accounting System (PDF)

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Description

– A Comparative Analysis of Computerized and Manual Accounting System –

Download The Impact of Advertising on the Marketing of Banking Services. Students who are writing their projects can get this material to aid their research work.

Abstract

This research study is a comparative analysis of computerized and manual accounting system with reference to Forte Oil Plc Enugu Branch. The essence of this study is to ascertain which one is more efficient and effective than the other.

Data were collected from primary and secondary sources which include the use of questionnaires, personal observation, text books, journals and internet.

It was discovered that software accounting system is expensive to run, it handles larger volume of data than manual accounting system, but it encourages fraud and funds can be lost in organization with the use of software accounting system.

In other to attain a larger volume of data and work accuracy in a shorter period, it is better for organization to use computerized accounting system to increase their efficiency.

Those studying accounting as a profession should be introduced to both the theoretical and practical aspect of the accounting and to reduce funds lost through fraud and forgeries, managers and accountants should provide software developers with progressive information relating to their activities.

Introduction

1.1 Background of the Study

Accounting system according to an Italian monk, Luca Pacioli (1491), is the combination of personnel records and procedures that a business uses to meet its need for financial data.

Financial accounting also encompasses the summary of information and presentation of periodic reports such as profit and loss statement and balance sheet. The historical firms of accounting were of different degree of sophistication according to the need and techniques of the time.

This is why modern accounting is based on the double entry system and the recognition of the dual nature of each transaction and this gives a co-ordinate support for the control of all the transaction of a business.

Accounting system according to business dictionary is an organized set of manual and computerized accounting methods, procedures and controls established to gather, record, classify, analyze, summarize, interpret and present accurate and timely financial data for management decisions.

In spite of this, there are policies for reporting an organizational performance and current conditions. These policies increase the usefulness of report including their reliability and comparability.

The policy that makes up acceptable accounting practices are determined by many individuals and groups and those policies are referred to as Generally Accepted Accounting Principles (GAAP).

Since accounting is a service activity, these rules reflect our society’s needs and not only on those of accountants. The Financial Accounting Standard Board (FASB) is another body or group that is seen as an independent group of seven full-time members with a large staff.

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