Importance of electronic accounting system- In the past, businessmen uses stones, toes, fingers and sticks as counting units. These ways they adopted aimed at gathering, processing, accessing and storing information. Business owners lost considerable amount due to pilferage by staff, inaccurate and incomplete recording of financial transaction. This has caused most of them to close down and others at the peak of collapsing.
Importance of electronic accounting
These problems are caused by manual collection and fraudulent activities going on with the business. With manual collection, it is very hard to calculate, record or even safeguard records hence the birth of Electronic Accounting System.
Electronic Accounting system will record income and expenditure, store information and provide accurate record. With it, businessmen worries less of the activities going on at his place of business, this is because he can decide to track his transaction from wherever and whenever within a short time.
Accounting information system keeps the financial record or scores for a business, when needed. This makes it easy for one to make reference to any time. It also enables easy of access from any location. You don’t need to be present at the central location to access information. Been online only is all it takes to access data in an electronic accounting system.
Account is used to communicate financial and other information to parties involved.
Organization uses it for annual reports, produce information for planning, in the case of deduction and other financial reporting activities. Accounting is necessary in everyday business.
Importance of Electronic Accounting system can never be overated, as these systems helps in quickening and promoting business services. This makes data easy to locate. With the use of search buttons, one can type in a keyword from the required data and that will take the person straight to the given location.
The use of computer is involved in automating the accounting system. It is used to develop account system devices and helps in it’s manipulation. Affordability of computers makes it perfect to be deployed for this task as the application into accounting system will result in the efficient management of business without considering problems posed by manual accounting system.
Electronic Accounting system is fast changing the method of business operations by replacing the manual operations thereby quickening the achievement of results. It cut across all areas of transaction from monitoring and auditing of financial record, improve efficiency through quick processing of transactions, retrieving and storing of business records of goods and services and also makes it easy to provide desired results.
Also electronic accounting system is efficient, easy to use, encourages mass production and provides enabling ground for security of data. With the use of passwords, unauthorized users can’t access the database. With strong security network, is nearly impossible to hack. And in the case of security failure, you can make reference to your back up details.
This method of accounting is recommended to every business man as it helps to improve satisfaction and services, controls and monitor information, calculate currency, convey finance and provide an opportunity to reduce the physical handling of both humans, documents and cash.
As time goes on, with the emerging of new technologies the importance of electronic accounting system will broaden.
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