One of the main purposes to write this article is to examine the fraud and its control in computerized accounting surroundings. Computerized Accounting enhances the credibility of the financial statements. Computerized Accounting also increases the credibility of financial reporting of a firm. In computerized accounting accounts are inter linked with each other. It helps a firm to detect fraud easily in accounts of the firm.
In this vigorous world, the functions performed by commercial banks in a under developed or developed financial system comprises of the economic inter-mediation. The use of computerized accounting system assists firms and financial information in such a way that all business routine transactions are feed in system on regular basis. So, it’s easy for the management to tally the available cash and cash equivalent with the system records.
In outdated accounting surroundings, it’s become so much difficult to detect and prevent fraud. The only reason is that all of the records are entered manually in books of accounts of the firm. So, it’s convenient to change the figures and stole the financial resources of a firm.
In order to eliminate these fraudulent activities computerized accounting comes to existence. The computerized accounting is useful to match the physical cash with the accounting record of the firm. So, no one attempts to get himself involve in any fraudulent activity.
Advantages of Computerized Accounting
- Get Control over errors
The main advantage of computerized accounting is to decline the errors occurs in accounting procedures. Computerized Accounting proves beneficial for the firm in a manner that it increases the credibility of financial records of the firms.
- Decrease Cost of Business
In computerized accounting system accountants needs more time to prepare financial records of the firm. However, in manual data processing system accountant requires more time to complete their work. In order to do so, they require sitting for longer hours, so they demand overtime from firm which raises the cost of business and decline profitability. Computerized Accounting helps firms to save cost and increase profits.
Manual Accounting System needs more concentration and hard work. It increases work load of the accountants. Due to it, so many accounting errors are detected in accounting records which occurs due to wrong posting in company record. Computerized Accounting saves businesses from this problem and helps the accountants to maintain accurate accounting record. Moreover, it will also facilitate accountants to find them error that occurs during data entry. Computerized accounting system helps the accountants to prepare routine assignments effectively and with accuracy. Many firms across the globe implements computerized accounting system it also include essay writing service, write my assignment, dissertation help.
The computerized accounting system is fully automated. In such accounting system accountants just needs to put records in system. System will automatically classify and maintain records in different accounts.
- Helps firms to safe data
In manual accounting record system firm lose information during some tragic events that occurs in firm such as short circuit, flood and so on. The computerized accounting system has several backups that save the data in company server. It is beneficial for firm in a way that if the data destroy from any computer system it may retrieved and saved from backup server of the company.