Computerized accounting refers to using computers for a range of accounting tasks. In the past, computers were used as calculators. Modern computers perform a number of additional tasks and provide analytical information.Know More
Most of the first commercial computers were used by businesses. Before computers were available, companies hired people to perform manual calculations. For large companies, the costs were high. While these computer were expensive, they were more affordable than hiring full-time employees, and they worked much faster.
Personal computers made computerized accounting far more affordable, and even small businesses could afford some of these early systems. While information still had to be entered manually, these computers could analyze the information almost instantly and generate simple reports. Most of these systems have been replaced, but some businesses still rely on systems purchased in the 1980s.
Computers handle a broad array of tasks. Point-of-sale systems are often tied directly to accounting software, enabling instant updates. In addition, modern systems can provide a number of analytical reports with useful insights. Increasingly, companies are using cloud-based platforms. These platforms allow managers and business owners to access information from anywhere, and they outsource server tasks to remote servers. The advantages provided by computerized accounting platforms make them nearly ubiquitous for medium and large businesses.Learn More
People need accounting because it keeps a record of cashflow, produces financial reports and monitors business expenses of an organization, according to the Houston Chronicle. Accounting helps owners make vital decisions to help their companies thrive.Full Answer >
Intercompany accounting is the process by which firms reconcile a company's transactions to eliminate duplication among different departments that may result in overstating assets, according to Oracle. Companies must adjust accounting practices for intercompany transactions or face legal consequences.Full Answer >
Accounting is important because it provides an objective picture of a business' financial success. In addition, accurate bookkeeping and accounting is extremely vital for tax and legal purposes. Many companies are required to have particular accounting procedures in order to comply with legal code.Full Answer >
Throughput accounting is an offshoot of variable cost accounting that treats direct material costs as the only variable cost, while all other costs are assumed to be fixed, explains Richard J. Lukesh of Turnaround.org. The accounting approach was developed by Eliyahu Goldratt as part of the Theory of Constraints paradigm.Full Answer >