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Revision: Accountancy : Computerised Accounting System >> Overview of Computerised Accounting System Accountancy Commerce (English Medium) Class 12 CBSE

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Key Points

Key Points: Computarized Accounting System (CAS)
  • Meaning: A Computerised Accounting System (CAS) is software-based and automates and manages accounting tasks.
  • Features: It offers features like speed, accuracy, security, real-time information, and integration with other business functions.
  • Importance: Saves time, reduces cost/errors, supports multi-user access, and stores large data.
  • Components: Hardware (devices), Software (programs), Personnel (users with access control).
  • Functions: It performs functions such as creating invoices and vouchers, recording transactions, and generating financial reports.
  • Process: Input (data) → Processing (entries) → Output (reports).
Key Points: Accounting Software
  • Accounting software is used to record, store, and manage financial data in a computerized accounting system.
  • The main types are ready-to-use, customised, tailored, and free/open-source, chosen based on business needs.
  • Ready-to-use is for small businesses; customised and tailored software suits larger businesses with specific needs.
  • Free and open-source software, like GNU Khata, is useful for small businesses with limited budgets.
  • Legal software is safe and updatable, while pirated software is illegal and can risk data loss.
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