Key Features of Computerised Accounting Systems

This article discusses the key features of desktop and cloud-based computerised accounting systems. It explores the advantages and disadvantages of each type of system, including factors such as cost, ease of use, and data security. The article also provides examples of popular accounting software programs and sources of technical help.

Part 1: Short Answer Questions
Question 1
From the list below, briefly explain one other key feature a business may include in their
organisational procedures and policy in relation to operating a computerised desktop or
cloud accounting system such as MYOB. Note: one feature for each item has already been
given as an example you just need one more for each item.
Item Key features
 Retention of
financial records
Example: All records are to be kept in hard copy and soft
copy for 5 years
Copy of the records must be maintained at registered
office and with auditor
 Transactions CAN’T
be changed; they
must be reversed
Example: All incorrect transactions need to be shown to a
supervisor
All the transactions that are incorrect must reviewed
before reporting
 Data backup Example: Data backup requires all computer files to be
backed up to a secure location
It needs a large storage space for storing an entire
information
 Usernames and
passwords Example: User names and passwords will be allocated to
all authorised users.
This helps in gaining greater security with respect to
confidential information
 Restoring corrupted

files Example: Restoring company files needs to be authorised
by the accountant
Restoring the corrupted files must be made for keeping
the record of each and every file
Question 2
Please redo answers below incoorect. Something like computer accounting software eg
MYOB
Outline the key features of desktop and cloud-based computerised accounting systems using
the following table:
Computerised
Accounting System
Type
Examples Advantages Disadvantages

Desktop
An example of
desktop involves
MacOS, Linux,
Indux, Windows etc. Desktop are found as
easier, less
expensive in context
of upgrade. It seems
as less costly and
offers for a better
value to the users.
It comprises of the
larger screens with
several accessories
that is keyboard,
mouse and the
monitors. Desktop
is counted as heavy
in carrying and
moving to the other
places and also
requires a plenty of
space on the desk for
set up or installation.
There are so many
cables attached with
the desktop and need
to plugged into a
power outlet every
time for using.
Desktop needs a
separate keyboard,
mouse and the
monitor.

Cloud-based
The main example
of cloud based
computerised
systems includes
Amazon EC2,
Google App Engine,
Online Microsoft
office & Google
Apps, iCloud Apple
and Digital ocean.
 Cloud
computing helps
in the easy
backup and
restoring of the
data. It
improves
collaboration by
way of allowing
the group of
people in easily
and quickly
sharing of an
information in
cloud through
the shared
storage. It
reduces
maintenance
cost relating to
hardware and
the software for
an enterprise.
Cloud
computing also
ensures security
in storing and
handling the
data. Under
cloud
computing, data
can be stored
only by
accessing the
data through
cloud by
making use of
an internet
connection.
 In this company
faces problems
in transferring
its services from
one vendor to
the another
vendor.
Infrastructure of
cloud computing
is entirely
managed,
monitored and
owned by a
service provider
so users of the
cloud has very
less control over
an execution and
the function of
the services
within the cloud
infrastructure.

MYOB Example includes
python, API etc.
 Fcalaites greater
speed of input
 Ensures
higher
accuracy
 Helps in
reducing
organizationa
l cost
 Security is
identified as
major concern
when
organization
uses MYOB
 In this, it is
highly
required for
the
organization
to conduct
training &
development
session
Question 3
Please redo answers This question relates to security rentention storage etc
Give two examples of how the organisation could maintain secure records of processed
transactions for audit purposes:
1. By preparing the financial statements in which recording, posting, analysis and
interpretation of the financial transactions is being made. This helps in maintaining the
records in a secured manner and is been used for conducting an effective audit. Further,
through the means of audit trial system information can be retained and stored by the
firm. As, transaction journal changes are tacked or monitored by audit trial system
which in turn can be used further for getting journal security audit report to get
summary aspects.
2. By following the guidelines or the framework of the accounting standards an entity
could records its accounting or business transaction in a suitable manner. Such records
are used by the auditor for making audit and helps them in putting are remark
accordingly in context of financial performance and the position of the company.

Question 4
Redo answers Look at the example date another example could GST and explanation would
be that it needs to be shown and whether total is GST inclusive
Below is a list some of the source documents that can be entered into a computer accounting
system. Legislation requires that source documents contain key accounting information. In the
table below list and explain three (3) key types of information that all these source documents
must contain.
Sales tax invoice Credit note Cash sale docket
Receipt Cheque butt
(One example is provided of what is required, you cannot use this example in your answer)
Information Explanation
Example:
Date
Example: All source documents must contain a date so that
the transaction can be entered into the correct accounting
period. The date is also important as it affects how long the
information needs to be kept
1. All kinds of the source document involve information about the
transaction like name of the parties, amount paid. This helps in
entering the transaction in correct account of the party along
with the correct amount. Party name and amount is stated as
important because it has a direct impact on formulation of the
final reports. It contains a unique number through which it is
been identified so that it could be differentiated in an
accounting system. It is useful because it allows the firm in
investigating whether any of the document is missing.

2. All these source documents contain substance of the business
transaction which helps in finding out the reason for making
the transaction. It is essential because it describes each and
every transaction in terms of their substance which helps in
reviewing the transaction at any time with ease.
Question 5
List the name of the legislation relating to privacy of information when using a computerised
accounting system. Also, list two (2) requirements of this legislation.
Name of legislation : ______Privacy Act 1988___________________________________
Requirement 1: It is an Australian law that regulates handling of the personal
information about an individual. It involves collection, storage, use and the disclosure
of the personal information.
Requirement 2: It needs relevant records from an organisation so that privacy of the
data could be maintained in entering the transaction by using the computer system.

Question 6
Redo answers Confusing one example could be What GST Code should
bank changes be?
By doing assessment, it has identified that FRE is recognized as a code for bank charges. In
the case of having tax invoice for the merchant fees then it would be considered as GST code
for the related portion.
You have just taken over as a bookkeeper for Bees R Us Pty Ltd. You noticed that the
previous bookkeeper used the N-T tax code to record bank charges. You are not sure if this is
correct as you have previously used FRE.
a) Research sources of technical help for a computerised accounting system such as
MYOB. Identify two (2) sources of technical help below.
Source 1: SAP accounting software
Source 2: XERO Accounting software
b) Choose one source from part a). Give two (2) examples of questions you can ask this
source to help you answer your question regarding tax codes.
Question 1: SAP facilitates an overview regarding the majority of tax configuration
out of box by the country. With respect to this How tax codes are been identified?

Question 2: In what way procedures, accounts and the rates relating to tax code are
been measured and how an input & output tax code is determined?