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Businesses are increasingly moving away from the traditional paper-based accounting to technology-driven financial management. According to NASSCOM’s “Technology Sector in India: Strategic Review – 2025,” the Indian technology industry’s revenue is expected to grow by 5.1% year-over-year, reaching approximately ₹23.5 lakh crore in fiscal year 2025.
So, what does computerized accounting encompass and why should organizations today use it?
A computerized accounting system utilizes computer programs to log down, analyze, and properly manage financial transactions processes. It minimizes the likelihood of errors because every small company or large corporation works more accurately, has an improved reporting mechanism and ensures it conforms with the rules.Also read: Difference between accounting and accountancy
The term “computerized accounting” refers to using accounting software to maintain financial records instead of traditional account ledgers or a spreadsheet format. At their core, these systems are made to perform basic accounting activities such as bookkeeping, tax computation, payroll processing and preparation of financial reports with little or no human intervention.
Businesses can also cut down on costly mistakes and speed up repetitive processes involved in finance by applying a computer-based system, as it saves time, provides up-to-date information, etc. More so, such a system must be able to combine other functions like inventory management and tax, thus becoming a complete financial management tool.
In order for this technology to operate correctly, it must contain the following:
Businesses in India are currently shifting towards computerized accounting systems due to various factors, including:
It ensures that automation controls all calculations, thereby eliminating errors attributed to manual data entry or miscalculations.
This is contrary to conventional finance management, where one has to wait for hours before analyzing one’s expenses because one is only allowed such access manually. Instead, instant submission and analysis of records are provided by computerized accountancy.
India’s businesses must comply with GST requirements, among other legislations like the TDS. This can be sorted out automatically when one uses software programs for handling such fiscal issues, e.g., invoicing systems, which are built around them according to guidelines set previously and do not require any input from any human being outside the system itself.
A computerized accounting system cuts down significant administrative costs by automating payroll processing, inventory tracking, and tax filing. Besides, this release gives employees enough time for strategic tasks rather than routine data input.
Businesses can choose from different types of computerized accounting systems based on their size, complexity, operations, etc.
You may also like: What are the functions of accounting?
Some of the factors that businesses should consider while selecting a proper computerized accounting system include:
Within Online Manipal, Manipal University Jaipur (MUJ) provides industry-based online degree courses that can be helpful for professionals who wish to be accountants in the future.
To remain productive and meet legal requirements, an organization no longer needs to have computerized accounting systems. Whether you are a small business or a big corporation, investing well in computerized accounting can significantly increase accuracy, speed up processes, and update your financial management systems.
Online Manipal provides access to online degree programs from prestigious universities for those who aim to progress professionally in accounting and finance by ensuring that students are ready for changes in the business environment. Learn more about these courses and discover how they can lay the stepping stones for a bright career path for you!
Information related to companies and external organizations is based on secondary research or the opinion of individual authors and must not be interpreted as the official information shared by the concerned organization.
Additionally, information like fee, eligibility, scholarships, finance options etc. on offerings and programs listed on Online Manipal may change as per the discretion of respective universities so please refer to the respective program page for latest information. Any information provided in blogs is not binding and cannot be taken as final.
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