Motivation for Computerization in Finance
Computerization is the act of performing, processing, storing, or controlling through the use of an electronic computer.
Computerization is the computer’s ability to be expandable in capacities according to the business or institution growth. This matter means a lot in accounting. Computerized accounting is not a very complex or complicated concept to adapt.
The execution and rightful operation of computerized accounting can come as a major challenge. The concept of accounting also related to the computerization itself. The process begins by gathering information such as invoices or receipt, storing them, converting them into meaningful information like a financial report and finally sharing the information with decision-makers of the organization.
The computerized accounting systems provide major advantages such as speed and accuracy of operation and the ability to see the real-time state of the company’s financial position.
Computerized accounting systems make use of computer technology to perform all the above-mentioned functions of accounting. Computers gather data from digital receipts and invoices. Due to their vast memory space, they store the collected data for future reference.
Finally, the stored data is accurately and effectively converted into valuable reports with the help of various computer software. There are many advantages of computerization accounting that will be majors help to the organization includes:
Speed and accuracy of the operation
This can be related to Sqayy system on providing the finance system which can ease the user to make financial processing. Besides, the information content of reports generated by computerized accounting is accurate and therefore quite reliable for decision making.
In a manual accounting system, the reports and information are likely to be distorted, inaccurate and therefore cannot be relied upon. It is so because it is being processed by many people, especially the number of transactions to be processed to produce such information and report is quite large.
The process can be found in Sqayy where student fee invoices automatically generated for every new semester. Besides, the customer accounts will always automatically calculate their account balance.
Besides, The reporting is flexible in the computerized accounting system as compared to a manual accounting system. The reports of manual accounting system reveal balances of accounts periodically while the computerized accounting system is capable of generating reports of any balance as when required for any duration which is within the accounting period.
Ensure the standardization of process and end result.
This compatible with our Sqayy system where the structure of the finance such as student ledger, statement of account, invoices and receipts. This means the structure can be easily understood by end-user.
In summary computerization accounting will help the organization or institution to process the business flow easily. The use of computerized accounting has brought opportunities for companies to performed the accounting functions more effectively and efficiently because the use of a computerized accounting system has brought significant time and cost-saving.
Therefore, computerized of accounting will offer greater opportunities even though it is for college management