Computerized Accounting PDF

COMPUTERIZE D ACCOUNTING UNIT-1 ❑Automation is defined as the process of using technology to perform tasks with minimal human intervention. MEANING ❑It is a technology-driven approach that aims to streamline processes, enhance efficiency, and reduce human error. ...

COMPUTERIZE D ACCOUNTING UNIT-1 ❑Automation is defined as the process of using technology to perform tasks with minimal human intervention. MEANING ❑It is a technology-driven approach that aims to streamline processes, enhance efficiency, and reduce human error.  WHAT IS ACCOUNTING AUTOMATION? ❑Accounting automation refers to using software to streamline and automate various accounting tasks, such as data entry, invoicing, and financial reporting. It helps save time, reduce errors, and increase efficiency in managing financial processes.  MEANING ❑ Tally is one of the most popular accounting software in the world and is used by more than 20 lakh businesses across 100 countries today. It helps companies record their day-to-day transactions and helps to analyze business-related data. This financial software is a product of ERP (Enterprise Resource Planning) and is used for various financial accounting purposes. ❑ Tally software is provided by the company Tally Solutions Private Limited, which is an Indian technology company, where the word ‘Tally’ means to keep records.  HISTORY OF TALLY ❑ Tally Solutions is a Bangalore-based company that was co-founded by Mr Shyam Sunder Goenka and Mr Bharat Goenka in the year 1986. ❑ The first version of Tally was called Peutronics Financial Accountant and it only offered basic accounting features. The software was updated with new versions through the years and by the year 2006, ❑ Tally Solutions had more than 1 million customers. Bharat Goenka won the Padma Shri Award in the field of Trade and Industry for all his hard work in developing this world-renowned software.  HISTORY OF TALLY ❑ Tally 3.0: Founded in the year 1990 and it offered basic accounting features. ❑ Tally 3.12: Developed in the year 1992 and it offered similar features to the previous version. ❑ Tally 4: Developed in the year 1992 and it supported Microsoft DOS. ❑ Tally 4.5: Developed in the year 1994 and it offered enhanced performance than the previous versions. ❑ Tally 5.4: Developed in the year 1996 and it offered a graphic interface version. ❑ Tally 6.3: Developed in the year 2001. It was compatible with Windows and offered features to calculate VAT.  HISTORY OF TALLY ❑ Tally 7.2: Developed in the year 2005 with more enhanced features. ❑ Tally 8.1: Developed in the year 2006 with features for managing payroll and point of sale. ❑ Tally 9: Developed in the same year 2006 with features for TDS calculation, E-TDS filing, and FBT among other features. ❑ Tally ERP 9: Developed in the year 2009. It could help with GST calculations, had a multi-user login feature, could generate invoices, and could also be remotely accessed from various office locations. ❑ Tally Prime: Developed in the year 2020 with easier navigation, user experience, and multi-tasking features  FEATURES OF TALLY ❑ The software is easy to install, has simple navigation features, and can solve complex business functions. ❑ You can create and maintain the records of up to 99,999 companies. ❑ With the latest version of this software, you can now automate employee record management. ❑ With its synchronization features, transactions and records from multiple office locations can be updated automatically. ❑ Chartered Accountants can use tally for their audits. ❑ It can generate instant reports for any particular month or year which is helpful for inventory management and accounting.  FEATURES OF TALLY ❑ Tally can generate consolidated financial statements for an organization. ❑ The software also offers online assistance to help you navigate the software and learn about its various features. ❑ The software supports multiple languages hence reports made in one language can be viewed in another language with ease. ❑ This can be used to manage your company’s inventories, invoices, sales, and purchase records.  TYPES OF TALLY SOFTWARE ❑ There are two different versions of the Tally software depending on the needs of your organization: ❑ Single-Use Tally Software ❑ With Single-Use Tally software, you can use Tally in one operating system only. This is helpful for small organizations, especially startups, where all business operations can be easily done in one system. The best single-use tally software is Tally ERP 9 Silver.  TYPES OF TALLY SOFTWARE ❑ Multi-User Tally Software ❑ With multi-user Tally software, you can use this software in multiple systems. It is mostly used by large organizations, schools, colleges, hospitals, and other institutions in the world. ❑ This allows you to use Tally in multiple office locations which is helpful in the case of multinational companies. The best multi-user tally software is Tally ERP 9 Gold. ❑ Additionally, large corporations can buy Tally servers to boost their software speed and efficiency. Multi-user Tally software is more expensive than single-use Tally software as it can be used on multiple PCs.  XBRL ▪ XBRL is a language for the electronic communication of business and financial data which is revolutionizing business reporting around the world. It provides major benefits in the preparation, analysis and communication of business information. ▪ XBRL stands for eXtensible Business Reporting Language. ▪ XBRL is an open, royalty-free software specification developed through a process of collaboration between accountants and technologists from all over the world. Together, they formed XBRL International which is now made up of over 650 members, which includes global companies, accounting, technology, government and financial services bodies.  BLOCKCHAIN ▪ Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. ▪ Blockchain is ideal for delivering that information because it provides immediate, shared, and observable information that is stored on an immutable ledger that only permissioned network members can access.  CLOUD ACCOUNTING ▪ Cloud accounting uses accounting software hosted on a safe remote server. Small business teams can store and access accounting systems, reports, and financial documents from the company computer and anywhere you have an internet connection.  BIG DATA ▪ It is like a massive pile of Information coming at us super fast from all directions. Big Data isn’t just about having lots of data; it’s about using intelligent tools to determine what it tells us. ▪ Big Data revolutionizes accounting, facilitating real-time analyses, robust fraud detection, and predictive insights. It enhances your financial reporting with dynamic, secure, and forward-thinking capabilities. Your financial reports shouldn’t be only where your money went but also predict where it’s moving next. When accounting and Big Data goes hand in hand, you get more clarity.  RPA ▪ RPA is a software technology that augments people with process automation. Today’s accountants use computer-dependent tools and processes with several manual steps and keystrokes. RPA can transform accounting workflow by combining disparate actions into a smooth automated process. Here is simplified robotic process automation: ▪ First, the RPA bot captures users’ on-screen actions like clicks and entries when performing accounting tasks. ▪ Second, the application generates a script based on users’ on-screen movements. ▪ Third, the RPA bot uses generated scripts to automate repetitive, rule-based accounting tasks. ▪ RPA bots mimic human actions in carrying out a task within a process. These software applications can execute repetitive tasks quickly, accurately, and consistently. For accountants, RPA provides a unique opportunity to optimize their accounting processes.  LATEST INNOVATION IN ACCOUNTING: ADVANTAGES ▪ Improved financial reporting and analysis ▪ Increased visibility into financial performance ▪ Reduced risk ▪ Enhanced decision-making