Characteristics of Computerized Accounting System

Running Head: Set-Up & Operate A Computerized Accounting System
SET-UP & OPERATE A
COMPUTERIZED
ACCOUNTING SYSTEM
Accounts
STUDENT NAME:
PROFESSOR NAME:
Date:

Set-Up & Operate A Computerized Accounting System
1. Identify the main characteristics of computerised accounting systems. (List 5)
Answer 1. Characteristics of Computerized Accounting System (CAS) are as follows:
1. Computerized Accounting System has the ability to handle large number of
transactions with the required speed and accuracy
2. This system can provide quality and quick reporting because of its high-level speed
and accuracy
3. Earlier companies had to keep large stack of accounting books and reports but with
the introduction of Computerized Accounting System all the above books and reports
are stored in computer. A considerable reduction in paper work and wastage of papers
have been noticed (Jensen, 2017)
4. Uniformity in maintaining accounting statements and financial reports has been
successfully achieved due to CAS.
5. CAS produces real time and comprehensive MIS reports facilitating easy and instant
access to complete and significant information (Leonard, 2019).
2. What are the organisational requirements related to setting up and operating a
computerised accounting system?
Answer 2. The organisational requirements related to setting up and operating a computerised
accounting system are as follows:
1. Extensive research is required for selecting the accounting software package which
depends upon the nature and size of business. Examples of such accounting software
package include Peachtree, QuickBooks etc.
2. Maintain chart of accounts accounting to national standards and organisational
requirements
3. Process payments in according with organisational procedure
4. Setting up bank accounts and enter any important details or information relating to the
suppliers or customers
5. The source documents like invoices, bank statements, credit card receipt, sales order
etc should be analysed and verified thoroughly to check accuracy and ensure it
complies with the tax laws
6. Petty cash system should be put into place and maintain properly
7. Transactions through credit card are processed against source documents like invoices
and then verification and reconciliation take place against the statements of credit
cards
8. Proper management of bank reconciliations and preparation of required financial
reports (Nelson, 2017).
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Set-Up & Operate A Computerized Accounting System
3. Explain the requirements of relevant financial services industry legislation relating to
information privacy and security when using computerised accounting systems
Answer 3. Requirements of relevant financial services industry legislation relating to
information privacy and security when using computerised accounting systems are as
follows:
i. Under Privacy Act, 1988 it is mandatory to protect the customers’ personal
information
ii. The collected personal information should be deleted once it is used or no longer
necessary for business records
iii. There exist many other obligations under Privacy Act that are required to be kept in
mind during the process of securing personal information. It may include “Cross-
border disclosure of personal information) under APP 8 and “Access to personal
information” under APP 12 (Office of Australian Information Commissioner, 2018).
4. What the information should be included in the source documents of financial data?
Answer 4. Following information should be mentioned in the source documents of financial
data:
1. Name and logo of business
2. Transaction date
3. Transaction related description
4. Transactions’ specific value
For instance, invoice of a company should have the following information mentioned
over it:
 Details of the goods and services provided
 Prices of the provided goods and services
 Date on which payment is supposed to be made
 Banking details of the business account for receiving the payment etc.
Bank statements is another type of source document which enlist all the transactions taken
place in the bank account.
5. Find the sources (e.g. website) of technical supportwith MYOB AccountRight software
program
Answer 5. The sources of technical support with MYOB AccountRight software program are
as follows:
i. For Starting out and installing:
https://www.myob.com/au/support/download-accountright
https://help.myob.com/wiki/pages/viewpage.action?pageId=5668930
https://www.myob.com/au/support/accountright?
productFamily=AccountRight&productVersion=AccountRight%202019
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