Accountancy is one of the primary commerce subjects in class 11. The Accountancy syllabus for class 11th majorly emphasises on imparting practical knowledge of the field but it also contains a few chapters which are entirely theory-based. One such chapter Applications of Computers in Accounting, that educates us about modern-day accounting methods and how computers and software work as a boon for those who are pursuing a career in Accountancy. So, let’s get started with the blog containing notes for class 11 Applications of Computers in Accounting.
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Accounting Information Software
Accounting Information Software (AIS) records and processes all kinds of financial exchange records inside functional modules. An AIS will gather, process, break down, and store budgetary information of an organization. Also, when called upon, it will recover and report such information to its clients, in particular bookkeepers, advisors, budgetary officials’ CFO, inspectors, government charge specialists, and so forth. Softwares like AIS’ assessment gets archived naturally and are further sent electronically to government revealing offices. Budgetary reports are kept up basically by entering data and making reports with a lot of formulas and backend programs, a considerable lot of which can be arranged by the client.
Fundamentals of Accounting Information Software
As per the class 11 applications of computers in accounting, there are three features of an AIS. They are:
- It enables an association to satisfy its legal commitments of getting ready and distributing certain bookkeeping proclamations and data
- It examines money-related information and gives dependable and precise budgetary data to the clients of the AIS
- Shields an organization’s bookkeeping information from break or robbery (which can be a critical factor)
Elements of Accounting Information System
The 12th chapter of class 11 which enlightens us about the applications of computer in accounting, explains that there are six essential parts of an accounting information system. Let us have a look at each of one of them in detail.
A set or collection of programs is called software. AIS programming plays out all the elements of putting away, handling, breaking down, and recovering budgetary information of an organization. The product can be summed up by programming that is accessible in the market or can be made explicitly for a specific organization and its bookkeeping needs. Some popular accounting software are Tally, Oracle, etc.
Like some other data framework, AIS will likewise require some equipment segments. These can incorporate Monitors, servers, CPUs, printers, scanners, auxiliary stockpiling equipment, and much more.
The users of people are the clients of the AIS. Inner clients incorporate bookkeepers and other monetary officials of the organization. At that point, there are additional clients outside the association that can be offered access to the AIS.
The 4th most essential element as per the class 11 applications of computers in accounting is the Procedure. These are the methodology the frameworks that follow to gather and procedure information. The database for such a procedure can be inward (like worker names, marketing projections) or outer databases (like client orders, charge chunks, and so on). The taking care of the information can be both manuals just as robotized.
An AIS predominantly manages a wide range of monetary and business information. Any information that is appropriate to the bookkeeping of the firm will be input information for an AIS. One must be meticulous while entering the information and it must be precise. Instances of such information incorporate solicitations, orders, finance, bills, and so forth.
Advancement of Computerized Accounting
Another vital topic that we must cover to ace this chapter is that of the advancement in computerized accounting. As the NCERT book entails this topic in detail, here are some quick pointer which will help you understand it better.
- The manual arrangement of bookkeeping has been customarily the most famous strategy for keeping the records of financial exchanges of an association
- Customarily, the clerk (or bookkeeper) used to keep records of books. For Example, money book, diary, and record, set up a rundown of exchanges and final accounts physically
- The mechanical advancements prompted the improvement of different machines equipped for playing out an assortment of bookkeeping capacities
- With the significant increment in the number of exchanges, the innovation progressed further. With exponential speed up, capacity, and preparing limit, more up-to-date kinds of these machines came up
- The achievement of a developing association with the unpredictability of exchanges would, in general, rely upon asset streamlining, brisk dynamic, and control
- Thus, the support of bookkeeping information on an ongoing (or unconstrained) premise turned out to be practically basic. Such an arrangement of keeping bookkeeping records got a helping hand from the electronic bookkeeping framework
While referring to the class 11 chapter 12 based on the applications of computers in accounting, you will find two major applications:
Computers and electronic information handling can be utilized to replace the everyday parts of a ‘bookkeeper’s’ work or ‘reviewing’ the books of record. You can, in the wake of preparing, utilize a set-up of PC bookkeeping projects or ‘bundles’ to do this on your own. There are ‘off the rack’ (prewritten) rules of bookkeeping software accessible to process accounting information.
A significant number of this accounting system is “modular.” This implies that a completely coordinated mechanized bookkeeping framework can be developed step by step. This has favourable results, regarding money surge and adaptability for the smaller organizations.
The firm would first be able to purchase, say, a business record framework, to deal with its client accounts, invoicing, articulations, and so on. And at a later stage grow the framework by adding the finance module to deal with its wages and pay rates, handling, creating the payslips, printed checks, and so on. Different modules can be included later, For Example, nominal ledger, purchase ledger, and cashbook.
In the territory of analytics and dynamic decision making, the accessibility of cutting-edge data is significant. Accordingly, prompt access to the most recent profit and loss statements has its benefits. Likewise, increasingly specific projects can be utilized to help the dynamics. For instance, computers can be utilized to create various statistics reports, so the movie can be made rapidly to turn negative trends into positive outcomes.
One specific sort of tool which the executives and the employees everywhere across the globe find significant is known as a ‘spreadsheet‘. A spreadsheet is just an enormous area created of lines and sections, made up of an assortment of location-specific cells; the spreadsheet resembles a matrix. Every cell on the framework has a reference number or network number. Text, numbers, or equations can be entered (utilizing the console) into any of the cells, and math and measurable activities performed on the cells.
Hopefully, after reading our notes about class 11 applications of computers in accounting, you are now through with the topic. Getting started on your desired carer path right from class 11 onwards will help you in achieving your career goals early in life. Get in touch with our experts at Leverage Edu and they will brief you how you can do it. Hurry up! Book an e-meeting.