It is a software application system for processing financial transactions as per GAAP to produce financial reports according to requirements. In the computerized accounting system, storage framework and data processing is known as operating environment. This environment is dependent on the accounting system.
The operating environment consists of both software and hardware in which the accounting system work. Software determines the structure of the hardware. Hardware selection is dependent on the privacy required, hardware selection, the number of users and the nature of activities of functional departments.
The following are the basic requirements for computerized accounting system:
The following are the benefits of computerized accounting software:
While these expedite the accounting process, these computing software have certain limitations: