What is computerised accounting: Features, Benefits & Modern Applications

Using software to record and manage financial transactions is known as computerised accounting. Compared to manual bookkeeping, it is simpler, quicker, and more accurate.

Let’s understand with an example:
 

• Manish owns a small bakery and sells cakes, cookies, and bread.
   
• Earlier, he used pen and paper to note sales and expenses, which took time and had errors.
   
• Now, he uses accounting software to track everything automatically.
   
• The software helps him see daily sales, expenses, and profits in seconds.

Here’s a simple table showing his bakery’s weekly transactions:
 

• Manish’s weekly income: ₹5,500
• Expenses (ingredients, rent): ₹3,000
• Profit: ₹2,500

Manish saves our time, avoids mistakes, and concentrates on expanding his company with computerised accounting.

This article provides an easy overview of computerised accounting. The article discusses the advantages of computerised accounting for enterprises, such as Manish's Bakery.

Read More – What is an Accounting Concept? Meaning & Key Principles
 

Key Features of Computerised Accounting

Computerised accounting replaces manual bookkeeping by using software to manage financial records. It makes accounting faster, more accurate, and easier to manage.

Example:

Aman runs a furniture showroom where he sells tables, chairs, and sofas. His father used to manage accounts in a notebook, which took hours and had calculation mistakes. Aman explained how computerised accounting helps his business with these key features:

1. Accuracy and Precision

• No more manual errors in calculations.
• Software automatically adds, subtracts, and applies taxes correctly.
• Imagine: If a sofa is sold for ₹25,000 with 18% GST, the software calculates the exact tax (₹4,500) and total amount (₹29,500) without mistakes.

2. Security

• All data is password-protected.
• No risk of losing records due to fire or theft (cloud backup available).

3. Budgeting and Forecasting

• Predicts future sales and expenses based on past data.
• Helps Aman decide when to order more furniture or offer discounts.

4. Automation

• Automatically generates invoices, payment reminders, and salary slips.
• Saves hours of manual work.

5. Scalability

• Grows with the business, whether Aman opens 1 showroom or 10, the software can handle it.

6. Inventory Management

• Tracks how many chairs, tables, and sofas are in stock.
• Alerts Aman when the stock is low.
   

Aman’s Monthly Sales Report: (Generated by Software)
 

Aman's father was greatly impressed by computerised accounting, since he was unaware that such a simple and precise system existed. He is currently encouraging other store owners to make the same transition to digital accounting.

Benefits of Computerised Accounting

Computerised accounting uses software to handle money records instead of paper. It saves time, reduces mistakes, and helps businesses grow faster.

Let’s see how it helped Dev, who owns a restaurant:

Dev used to write all transactions in a register, which took hours and had many errors. After switching to accounting software, his work became easier and his business grew.

Key Benefits Dev Experienced:

1. Cost Savings

• No need to hire extra staff for bookkeeping.
• Saves ₹15,000 per month on accountant fees.

2. Better Reporting

• Gets daily sales, expenses, and profit reports in one click.
• Example: Knows which dishes sell most (like 50 butter chickens daily).

3. Reliability

• No lost or damaged paper records.
• Software keeps data safe for years.

4. Saves Time

• Automatic calculations save 3 hours daily.
• More time to focus on customers and food quality.

5. Easy Payroll & Banking

• Software calculates staff salaries (₹8,000 per waiter) and sends payments.
• Bank transactions sync automatically.

6. Faster Billing

• Generates bills in seconds (e.g., ₹1,200 for a family dinner).
• No manual addition mistakes.

7. Minimises Errors

• No wrong totals or tax calculations.
• Example: Earlier, GST errors cost ₹5,000 per month in fines, now zero.

Also Read  - What Is the Accounting Cycle? Step-by-Step Overview
 

Dev’s Restaurant Monthly Summary: (Software Generated)
 

• Before software: 5-10 calculation errors per month.
• After software: Zero errors, 20% more profit.

Dev is satisfied that his business has grown with no mistakes.. He is shocked that he was unaware of computerised accounting sooner because it reduced his workload and increased the success of his restaurant.

Conclusion

When it comes to your company's financial affairs, computerised accounting is like having an intelligent assistant. It completes all the laborious tasks without error, including adding numbers, monitoring sales, and organising bills. 

We observed how the acceptance of digital accounting improved Dev's restaurant, Aman's furniture store, and Manish's bakery. The software keeps everything accurate (no more incorrect totals or tax issues), saves money (no more paying extra for accountants), and saves time (no more late nights with calculators). Whether you sell cakes, furniture, or meals, this system makes business easier. 

It's secure, fast, and works for small shops or big companies. Best part? You can see your profits anytime with just one click. If you're still using paper books, it's time to change - your business will thank you. Computerised accounting isn't just helpful, it's essential for any business that wants to grow without money headaches. 

FAQs

How much does it cost?

Prices start from ₹500 per month for small shops. Bigger businesses may pay ₹5,000-10,000 per month for advanced features.

Will it work for my small kirana shop?

Absolutely! It's perfect for small shops – tracks daily sales, expenses, and even reminds you when to pay suppliers.

Can it handle GST calculations?

Yes! It automatically calculates GST and generates ready-to-file tax reports – no more tax calculation headaches.

What if I make a mistake in the entry?

No problem! You can easily edit any transaction, unlike paper books, where mistakes stay forever.

Is my data safe?

Completely safe! Your information is password-protected and can be backed up online (cloud storage).

Can I access it from my phone?

Yes! Most software lets you check sales and expenses, and even create bills from your smartphone.

Do I need the internet all the time?

Some software works offline, too! You just need the internet occasionally to back up data.

How will it help grow my business?

By saving 2-3 hours daily, avoiding costly mistakes, and showing clear profit/loss reports to make smarter decisions.