Maintenance of Computerized Financial Accounts

Book keeping is a term that refers to the maintenance of the accounts of any individual or organization. It is an art that has been perfected over the years. An activity that has been going on for a long time, book keeping plays a significant role in determining the performance of a project or an organization as a whole. Correctly maintained accounts serve as the major tool to business analysts and investors to evaluate the performance of the company.

The government, of course, is another key stake holder in any business activity that takes place within its area of jurisdiction. There are two obvious reasons for any government’s interest in the accounts of any major corporation or any other business entity working in the SME sector.
The first reason is to get the correct level of earnings that would help the government in calculating its GDP and information that can be used as a macroeconomic indicator. The second reason, of course, is to calculate the correct amount of income tax that the entity or the owner is liable to pay.

Due to the rising importance of these accounts, international standards have been formed which have been perfected over the period of time. All accountants are legally obliged to follow these standards whenever maintaining the books. However, it is also possible for the accountants make mistakes when posting these transactions manually.

Hence, the computerization of accounts is something that has become a norm in the modern era. With the computers surging throughout the world market over the past couple of decades and the automation of all other business activities, the maintenance of the financial statements is also a crucial activity that has to be computerized.

There are several benefits that follow the computerized maintenance of these accounts. Most critically, of course, is the minimization of errors. It is possible for human beings to make mistakes. For a computer, it is not. Therefore, the chances of making errors when posting these transactions, of whatever nature they may be, have been minimized. Moreover, the maintenance of computerized accounts has minimized the paperwork required. Book keeping has always been seen as a tedious job because of the amount of writing that needed to be done. When maintaining books manually, not only are the chances of erroneous postings maximized but also a large amount of paperwork is required.

The introduction of the computer and the rise of technology in the modern age have solved many problems for us. The maintenance of financial accounts on a computer is just a small example of the wonders that have been achieved in the modern era.

With experience as the sub-editor of a local magazine, Lizzie Blake, a graduate from UIC with majors in both Literature and Management, holds a lot of experience in custom theses writing help.