For a small business using a manual bookkeeping system may be ideal. However, as the business grows, recording business transactions by hand can become very difficult and time consuming. Computer can often be used to reduce the workload and improve the usefulness of accounting information.
This article discusses the basic functions of a computer can do for your business. A computer can be divided into two parts – hardware and software. Hardware refers to the pieces of the computer that you can touch and see, such as the keyboard, the mouse and the computer screen. The software refers to the instructions that are given to the computer to describe what it should do with the data you have given such as Microsoft excel and Microsoft Words.
Handling inputting business transactions
Use the keyboard and the mouse to enter business transactions into a computer.
Storing business data
Once the business data is entered it is stored on the computer and for similar transactions you do not have to re-enter the whole transactions again. You can store the data on a memory stick or on a disk or on the computer hard drive.
The computer is capable of compiling sets of data and modified to present more useful management information such as to sort sales invoices by the dates and/or by the customers.
Producing useful reports
You can either view your data on the computer screens or print the reports on papers via a printer or stored back on the computer.
Learning how to use a computer is relatively easy and straight forward. For the first times, you may take ages just to enter a few transactions but as you do more and more data input it will become easy and your speed will improve.
Concise Accountancy - Making managing accounting record simple for businesses