Explain the role of Computer in accounting.
Nowadays, we cannot imagine our lives without computers. They have become an integral part of our lives. Infact, the modern era is regarded as the era of computers. Gone are the days when the business records were maintained manually. With the rising complexities in the modern business world, business accounts cannot be maintained without computerized accounting systems. Be it the preparation of books of original entries or the complete financial statements, the role of computers is inevitable.
Computer can be used in almost all the aspects of accounting. However, the main aspects are listed below.
• Recording of transactions
• Stores accounting
• Payroll accounting
• Accounting for debtors.
• Accounts of suppliers
• Classification of business transactions through sorting, merging and updating.