ICT Flashcards
What things might be part of a computer system?
May use a fully intergrated accounting package (sage)
May use a spreadsheet (excel) to devise own payroll or balace sheet
May use a database (Access) to keep account names and addresses
May use a word processor (word) to write letters
What does Sage provide? (accounting software)
Production of original documents (invoice, credit notes etc)
Inventory control
Production of ledger accounts
Payroll- calculation of wages, printing of pay slip, payment of wages by credit transfeer direct to employees bank acccount
Preparation of final accounts
What are the benefits of computerisation?
Time saving
INcreased accuracy
Processing of data to produce reports (final accounts)
Exception reporting (early warning messages than an account is about to be overdrawn)
Produces monthly and annual returns e.g. VAT returns, payroll
INcreased job satisfaction from learning new skills, doing things faster and avioding tedious repetition
What are the drawbacks of computerisation?
Installation costs can be high
Operating staff need specialised training
GIGO (garbage in garbage out) - faulty data will mean output is incorrect
Dependence on software and the need for costly upgrades
How is speed an advantage of computerisation?
entries are processed immediately giving more up to date info for decision making
How is accuracy an advantage of computerisation?
can be improved as many entries are processed automatically and calculations done using pre-set formula reducing chance of human error
How is legibility an advantage of computerisation?
easier to read than hand writing and information can be presented in different formats
How is automatic an advantage of computerisation?
many entries can be made automatically such as direct debits and standing orders so you have up to date information
How is time saving an advantage of computerisation?
produce more information (final account any time in year)
May not need full time accountant
How is more info available an advantage of computerisation?
helps improve decision making quality
How is money saving an advantage of computerisation?
a full-time accountant may not be required
Money can be reinvested elsewhere
What computer act do we need to now?
Data protection act 1998 and GDPR
What is the aim of the data protection act?
Protect individuals against companies that hold data on them on computers
Allow individuals be aware of what info held on computers and allowed access to information
What happens if companies wanting to use a individuals info?
They must register with data protection commissioner
What is the role of the data commissioner?
Applies strict rules to what can and cannot be done with data
