Computerised Accounting Intro

Software Types & Examples

• Off-the-shelf, Bespoke:
  
• Word processors – Word, word perfect, word pad etc.
  
• Databases – Access
  
• Spreadsheet – Excel, MS Works, Lotus 123,
  
• Email manager – MS Outlook
  
• Accounting packages –
  
• Statistical apps: SPSS, R etc.
  
• Web browsers – explorer, Firefox etc.

Internet vs Intranet

The Internet – a massive network of networks,

The Internet is a networking infrastructure. It connects millions of computers together globally, forming a network in which any computer can communicate with any other computer as long as they are both connected to the Internet.

Intranet:

This is an internal web or network that enables staff to share data, documents, internal web pages etc., not accessible to unauthorised people or outsiders.

Internet vs WWW

The World Wide Web

The Web is just one of the ways that information can be disseminated over the Internet. Web uses the HTTP protocol, one of the languages spoken over the Internet, to transmit data. The Web also utilizes browsers, such as Internet Explorer or Firefox, to access Web documents called Web pages that are linked to each other via hyperlinks. Web documents also contain graphics, sounds, text and video.

Accounting package functionalities

• Database
  
• Word processing
  
• Calculations
  
• Spreadsheet – charts, graphs etc
  
• Emailing
  
• EDI

Facilities include:

• On-screen inputs,
  
• Print-outs
  
• Automatic updates
  
• Recording and reporting
  
• Instant management reports –
  -Aged trade receivables analysis report
  -Aged trade payables analysis report,
  -Customer and supplier activity reports,
  -Nominal activity
  -VAT return etc
  
• Can also incorporate payroll systems

Advantages:

• Saves time and therefore money,
  
• Gives up-to-date reports
  
• More accurate

Disadvantages:

• System crashes/security
  
• Initial & running cost can be prohibitive

Ledgers

Subsidiary Ledgers

• Sales Ledger – Customers
  
• Purchases Ledger – Suppliers

General / NOMINAL Ledger

• Sales (Type A, B, C etc),
  
• Purchases,
  
• VAT, SLCA, PLCA,
  
• Rent, Insurance, etc...
  
• Capital, Drawings
  
• Bank, Cash, Petty Cash, Vans, Fixtures, etc.

Nominal Code Classification

0001 – 0999 Fixed Assets (Non Current Assets)

1000 – 1999 Current Assets

2000 – 2999 Liabilities

3000 – 3999 Capital and Reserves

4000 – 4999 Sales Income

5000 – 5999 Purchases

6000 – 6999 Direct Expenses

7000 – 7999 Overheads

8000 – 8999 Overheads (Est)

9000 - 9999 Suspense & Misposting