Computer Bookkeeping and Accounting PDF

Click to edit Master title style COMPUTER BOOKKEEPING AND ACCOUNTING IT101 B a c h e l o r o f S c i e n c e i n I n f o r m a t i o n Te c h n o l o g y UEP-College of Science J O S E P. C H I N G , J R. , D...

Click to edit Master title style COMPUTER BOOKKEEPING AND ACCOUNTING IT101 B a c h e l o r o f S c i e n c e i n I n f o r m a t i o n Te c h n o l o g y UEP-College of Science J O S E P. C H I N G , J R. , D M 1 Click to edit Master title style Introduction 2 2 Click to edit Master title style Definition Computer – an electronic device for processing data that takes input from its user, stores, processes data, and generates the required output per the processing instructions given to it by the user. Bookkeeping - systematic writing or recording of business transactions. Accounting – is the system that measures business activities, processes that information into reports, and communications the results to decision-makers. Information System – a collection of people, procedures, software, hardware, and data which works together to provide information essential to running an organization. 3 3 Click to Parts of edit Information Master title System style People Software People are competent end users working to increase their Set of instructions or programs that tell the computer productivity. End users use hardware and software to solve how to do a specific task. Used to direct the hardware information-related or decision-making problems. on how to turn data into useful information for people Management Group to use. Computer System Manager There are basically 2 kinds of software: Computer/System Administrator System Software – performs tasks necessary for the Systems and Procedures Group efficient management of the hardware. Computer Scientist Operating Systems Computer Engineer System Analyst Utility Programs Programming Group Compilers and Interpreters Computer Programmer Application Software – programs that help solve and Computer Operations Group meet user problems and needs directly. Computer Operator Data Encoder Productivity Software Data Entry Communications Operator 4 4 Click to Parts of edit Information Master title System style Hardware Refers to the physical components of a computer Output Devices - consists of devices that that you can actually touch, such as the keyboard, communicate the result of processing back to monitor, central processing unit (CPU), mouse, and the user by converting electrical signals from printer. the ALU into a form recognizable by a human Input Devices – it translates data and programs that operator. humans can understand into a form the computer Communication Devices – these send and can process. receive data and programs from one computer System Unit – consists of electronic circuitry with to another. A device that connects a two parts: microcomputer to a telephone is a modem. Central Processing Unit (CPU) Memory (Primary Storage) Secondary Storage – is where data are stored permanently. 5 5 Click to edit Database Systems Master title style Rational database systems such as Advantages of Database Systems enterprise resource planning (ERP) depart The system recognizes business rather from the “Accounting Equation” method of than just accounting events. organizing data. These ERP systems such The System supports a reduction in as SAP, Oracle, and PeopleSoft capture operating inefficiencies. data, both financial and non-financial, and The system eliminates redundant data. store that information in a data warehouse. Database systems reduce inefficiencies and redundancies that often exist in transaction- based systems. 6 6 Click to edit Master title style Bookkeeping and Accounting 7 7 Click to edit Master title style Bookkeeping Who does the job in bookkeeping? Bookkeeper’s Responsibilities and Duties Bookkeepers are responsible Core Duties for providing accurate, up-to-date Data Entry – Recording the financial transactions financial information about a business. and balancing the books. Monthly reports – Summarizing the business’s Accounting Documents and Forms. financial position. Official Receipts (OR) Additional Duties Bills (Billing Statement) Accounts Receivable (and credit control) – Invoices Creating and sending invoices, and following up to Delivery Orders get them paid. Purchase Orders Accounts Payable – Making sure invoices from Payment Voucher suppliers are accurate and paid in a timely manner. Petty Cash Voucher Payroll – Calculating pay and deductions. 8 8 Click to edit Master title style Bookkeeping Advance Duties Tax filing - Preparing tax returns. End-of-year reporting - Assisting with annual income statement and balance sheet reports. Business strategy - Creating budgets and forecasts, and advising It is the systematic on how to improve the business. writing or recording of Business process - Reviewing, researching, and implementing business transactions. software solutions and internal controls to streamline the business and enhance performance. Training - Working with staff on best practice bookkeeping and use of software solutions. Virtual office - Providing a full-service virtual office, for example, telephones, postal addresses, and email communications. Liaison - Meeting with accountants, on behalf of their clients, about financials and tax queries. Acting on behalf of the client with the tax authorities. 9 9 Click to edit Master title style Accounting “Accounting is the art of recording, Therefore, accounting is” the classifying summarizing in a significant manner and in terms of money, process of recording, classifying, transaction, and events which are, in part summarizing, reporting, at least of a financial character and interpreting the results thereof.” - interpreting results of the [According to the Committee of Terminology financial transactions of a of the American Institute of Certified Public business, and analyzing required Accountants] financial information relating to “Accounting may be defined as the economic events of an identifying, measuring, recording and communicating of financial information.” – organization to the interested [According to Bierman and Drebin] users for making decisions.” 1010 ClickAccounting How to edit Master cantitle helpstyle your business? 1. It is through accounting that the businessman can measure his profit and can tell how well his business has been doing during any given period. 2. Accounting information leads to the effective management of your business. 3. Accounting provides a record of property, debts, and invested capital. 4. Accounting enables the businessman to control transactions so that desired results are achieved. 11 11 Click toofedit Forms Businesses Master title style 12 12 Click to editInformation Accounting Master titleSystems style (AIS) Is a subsystem of the management information system Collects and processes transaction data Communicates financial information to decision-makers. Includes each of the steps in the accounting cycle. 1313 Click to editInformation Accounting Master titleSystems style consists of: PEOPLE PROCEDURES DATA SOFTWARE INFORMATION TECHNOLOGY 1414 Click to editInformation Accounting Master titleSystems style (AIS) Input Process Output Source Double-Entry Financial Documents Bookkeeping Statements 1515 Click to edit Benefits of AIS Master title style Businesses use accounting information systems to make their accounting activities easier, quicker, and more accurate. Allows to save the time of employees and avoid mistakes. Implementation of such system requires investment and time to be spent on the implementation, however future benefits are much higher that the expenses incurred. Helps the company forecast sales, profits, and loss. Make it easier to compile financial data for use in taxes, payroll, and other bookkeeping requirements. 1616 Click to edit Definition of Master Terms title style Bookkeeping – is the systematic writing or Trial Balance – this is a periodic checking or recording of business transactions or events testing of balances that is done at the end of the as they happen. month. Accounting – deals with recording, Adjustments - a set of journal entries recorded at classifying, summarizing, and interpreting the end of the accounting period to have updated results of the financial transactions of a and accurate balances of all the accounts. business. Adjusted Trial Balance – this is a listing of the Recordkeeping – refers to the orderly ending balances in all accounts after adjusting entries have been prepared. gathering and filing of information, such as receipts, invoices, checks, petty cash slips, Income Statement – gives the total amount of and other important business papers. profit made by a business within a specified time period. Journalizing is the recording of transactions in a book of original entries (first entry). Balance Sheet – gives the three things at any point in time: Posting – is the transferring of a journal entry How much property does a business owns? to a book of final entries known as a ledger. How much a business owes How much capital a business has? 17 17 Click to edit Master title style “ © 2022 Xero Limited. All rights reserved. "Xero" and "Beautiful business" are trademarks of Xero Limited. url: https://www.xero.com/us/guides/what-is- bookkeeping/what-does-a-bookkeeper-do/ S M Maruf SiddiqeFollow – “Accounting Information Systems” Student at Bangladesh University of Professionals 1818 Click to edit Master title style Thank You 19