The difference between Reserves and Provisions explained
Both reserves and provisions refer to the amount retained by an organization to deal with all possible contingencies in the future. In accounting parlance, reserves are appropriations out of profits and provisions are charges against profits. Although the IFRS Standards sometimes call provisions a ‘reserve’, they are not the same thing – a provision is…
Read article
Functions Performed by Computerised Accounting Software Available in the Market
There are many types of computer software available in the market. The list of software available in the market is exhaustive including Application software, Customer relationship management (CRM) software, Application software, Enterprise resource planning (ERP) software, Closed source software, Operating system, System software, Utility software, Malware, Firmware, Driver Software, Freeware, Shareware, Open source software, Recording…
Read article
Advantages and Disadvantages of Computerised Accounting
Computers offer many advantages, such as increased productivity, efficient data management, and access to vast information. However, they also have disadvantages, including the risk of cyber-attacks, reduced physical activity, and potential over-reliance on technology, etc. Let us study here in detail. Advantages of Computerised accounting: Disadvantages: Related posts: WHAT IS THE MEANING OF COMPUTERIZED ACCOUNTING?…
Read article
Accounting terminologies including terms Used in Computerised Accounting
Accounting terminology is the language used by accounting professionals such as income, expenses, assets and liabilities, etc. A computerised accounting system is a platform that processes financial transactions and events according to the GAAP (Generally Accepted Accounting Principles) a set of accounting rules, standards, and procedures prescribed by the Institute of Chartered Accountants of India,…
Read article Difference between Computerised and Manual Accounting
The process in which the accounts are handwritten on the paper-based register in the form of ledgers, subsidiary books, and journals to record the financial transactions is called Manual Accounting. The process in which the financial accounts are systematically accounted through specially developed computer accounting software. The following are the differences between a computerized accounting…
Features of a Computerized Accounting System
A computerized accounting system is a software application that automates financial records and reporting processes to make them faster, more accurate, and easier to manage. It reduces the manual entry of data, eliminates redundant operations, and reduces accounting error risk with built-in controls. The main features of a computerized accounting system are; Updates: In a…
Read article