Functions of Computerized Accountancy
The information created within accountancy system is more and more frequently used in company’s management and the computerized accountancy is expected to provide information not only retrospective by also prospective one. This paper presents functions of computerized accountancy related to informat...
Saved in:
| Published in: | Электронное моделирование |
|---|---|
| Date: | 2008 |
| Main Author: | |
| Format: | Article |
| Language: | English |
| Published: |
Інститут проблем моделювання в енергетиці ім. Г.Є. Пухова НАН України
2008
|
| Subjects: | |
| Online Access: | https://nasplib.isofts.kiev.ua/handle/123456789/101587 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Journal Title: | Digital Library of Periodicals of National Academy of Sciences of Ukraine |
| Cite this: | Functions of Computerized Accountancy / J. Chluska // Электронное моделирование. — 2008. — Т. 30, № 4. — С. 117-124. — Бібліогр.: 13 назв. — англ. |
Institution
Digital Library of Periodicals of National Academy of Sciences of Ukraine| _version_ | 1859853368141283328 |
|---|---|
| author | Chluska, J. |
| author_facet | Chluska, J. |
| citation_txt | Functions of Computerized Accountancy / J. Chluska // Электронное моделирование. — 2008. — Т. 30, № 4. — С. 117-124. — Бібліогр.: 13 назв. — англ. |
| collection | DSpace DC |
| container_title | Электронное моделирование |
| description | The information created within accountancy system is more and more frequently used in company’s management and the computerized accountancy is expected to provide information not only retrospective by also prospective one. This paper presents functions of computerized accountancy related to informational expectations of information recipients.
Информация, создаваемая внутри системы бухгалтерского учета, все чаще используется менеджментом компании. Поэтому требуется, чтобы компьютеризированный учет снабжал не только ретроспективной, но и перспективной информацией. Представлены функции компьютеризированного бухгалтерского учета, связанные с информационными ожиданиями получателей информации.
Інформація, що утворюється у системі бухгалтерського обліку, все частіше використовується менеджментом компанії. Тому потрібно, щоб комп’ютеризований облік забезпечував не тільки ретроспективною, але й перспективною інформацією. Наведено функції комп’ютеризованого бухгалтерського обліку, пов’язані з інформаційними очікуваннями отримувачів інформації.
|
| first_indexed | 2025-12-07T15:42:58Z |
| format | Article |
| fulltext |
J. Chluska, PhD
Czestochowa University of Technology
(Dabrowskiego str., 69, 42-200, Czestochowa, Poland.
E-mail: jchluska@zim.pcz.czest.pl)
Functions of Computerized Accountancy
(Recommended by Prof. A.F. Katkow)
The information created within accountancy system is more and more frequently used in com-
pany’s management and the computerized accountancy is expected to provide information not
only retrospective by also prospective one. This paper presents functions of computerized
accountancy related to informational expectations of information recipients.
Èíôîðìàöèÿ, ñîçäàâàåìàÿ âíóòðè ñèñòåìû áóõãàëòåðñêîãî ó÷åòà, âñå ÷àùå èñïîëüçóåòñÿ
ìåíåäæìåíòîì êîìïàíèè. Ïîýòîìó òðåáóåòñÿ, ÷òîáû êîìïüþòåðèçèðîâàííûé ó÷åò
ñíàáæàë íå òîëüêî ðåòðîñïåêòèâíîé, íî è ïåðñïåêòèâíîé èíôîðìàöèåé. Ïðåäñòàâëåíû
ôóíêöèè êîìïüþòåðèçèðîâàííîãî áóõãàëòåðñêîãî ó÷åòà, ñâÿçàííûå ñ èíôîðìàöèîííûìè
îæèäàíèÿìè ïîëó÷àòåëåé èíôîðìàöèè.
K e y w o r d s: accountancy, computerized accountancy, IT accounting.
Accountancy is a fundamental source of economic information for business
units. It collects all necessary data which characterize business activity and it
provides services to various levels of management by delivering all necessary
information. Thus it is a significant component of an informational system in
business. Business accountancy can also be considered as a coherent system (it
is an element of a bigger system and it is a system itself) where data collection
and registering (filing), data processing (grouping according to set criteria) and
presentation of the effects of the processing (in the form of statements and vari-
ous sheets) can be distinguished. Information received from computerized
accountancy should present true and fair view of a company and meet the infor-
mational expectations of the system users and information recipients. Accoun-
tancy which employs computer hardware for data processing must provide not
only for accounting rules as a system, legal regulations but also specific technol-
ogy requirements. The article characterizes computerized accountancy func-
tions which provide for its specificity related to informational expectations of
the recipients of such information.
The essence of business accountancy. Accountancy is not an unambigu-
ous concept. Polish and foreign literature presents numerous interpretations of
ISSN 0204–3572. Ýëåêòðîí. ìîäåëèðîâàíèå. 2008. Ò. 30. ¹ 4 117
this concept and various scope of accountancy. One of the most prominent Pol-
ish theorist of accountancy, S. Skrzywan highlights its essence as a particular
kind of economic events registration. According to S. Skrzywan this means a
system of continuous registration, presentation and interpretation of data on
business activity and property of a business unit, expressed in cash and balanced
numbers [1].
Traditional approach to accountancy encompasses three fundamental mod-
ules: accounting; costing; financial reporting.
Accounting is a filing part of accountancy which registers, in the books, all
the data for further processing. Costing is defined as all the activities which aim
to reflect the provision, production and sales in a company by means of registra-
tion, grouping and interpretation within separate prime costs of production and
sales of products of company’s activity, measured in a quantitative an qualitative
way, for a certain period of time, in order to obtain possibly comprehensive in-
formation necessary for determination of results and for managing the company.
[2]. Financial reporting is a final stage of data processing in accounting systems.
It generates information presented to the financial statement recipients of a
broadly understood business environment. It is regulated by legal regulations in
terms of content, form and presentation.
In Polish legal regulations on accounting rules, an essence of accountancy is
shown indirectly, by determination of its purpose and scope. According to the
Accounting Act it encompasses:
accepted accounting rules (policy);
bookkeeping, on the basis of accounting records, with consideration of
events in a chronological and systematic order;
periodical determination and check, by means of stocktaking, for real level
of assets and liabilities;
assets and liabilities pricing and determination of financial result;
preparation of financial statements;
collecting and filing of accounting documents, as well as all the remaining
documentation under the Act;
audits and announcement of financial statements in cases under the Act [3].
If the computer groups take part in accounting data processing, such an ac-
counting is referred as to computerized accountancy.
Information created by accountancy is useful for the business environment
and related business transactions and capital connections. These relationship
concerns mainly:
its owners and prospective investors who are interested in financial results
and the level of risk of activity of a company and they need the information
which could help them to track, purchase, keep or sell their shares, stocks etc;
contractors who are interested in evaluation of general financial stand of an
entity and its plans for the future;
J. Chluska
118 ISSN 0204–3572. Electronic Modeling. 2008. V. 30. ¹ 4
public institutions and organizations which are particularly interested in in-
formation for the economic macro statistics or economic and fiscal policy deter-
mination;
lenders and borrowers, who are interested mainly in level of cash flow in an
entity and its solvency which impacts the evaluation of credit risk;
the Treasury, which is interested in information on financial results of an en-
tity and the method of tax clearance;
employees, who are interested in issues of remuneration, perspectives for
the entity in terms of opportunities of job and remuneration continuation;
local governments – these are interested in general financial standing of an
entity in terms of local tax liabilities, employment rate, number of job vacancies,
environmental pollution, local subventions and subsidies;
competition, who are interested in financial and organizational activity of an
entity in terms of its profitability, size and sales markets, prices and margins and
the marketing policy.
Access to the information on a business unit is guaranteed to the external re-
cipients by the Accounting Act regulations, which precisely determine the forms
and deadlines for financial statement presentation, one of the main sources of in-
formation on businesses.
Effect of accounting methods on accounting policy. Accounting policy is
understood as: selected and used solutions (rules), accepted under the Act and
determined under the International Accounting Standards which ensure the re-
quired quality of financial statements [4]. The companies can, within the ac-
cepted accounting rules, use some simplifications unless it negatively affects the
realization of the rule of true and fair view.
Data processing in accounting systems can be carried out by means of a con-
ventional «by hand» method or using computer technology. «By hand» methods
of bookkeeping include: tabular bookkeeping; register bookkeeping; duplicat-
ing bookkeeping.
Tabular bookkeeping was invented in XVII century in France. Record of an
economic event in the form of table is prepared in such a way that first a chrono-
logical records is written in the register and then with a systematic approach on
the appropriate accounts of a ledger. After registration of all the records, a col-
umn of a total and Dt and Ct account columns are added. A total of a register is
equal the total of turnover of Dt and Ct side of all accounts. For the ledger
accounts a detailed bookkeeping is carried out (for the «Materials», «Settle-
ments with Suppliers», «Settlements with Customers», «Goods»).
Due to limited number of account, a tabular technique can only be applied in
small businesses. The advantages of this form of bookkeeping include transpa-
rency of records, easy identification of accounting errors, easy registration and
check of the records in ledgers and subsidiary ledgers.
Functions of Computerized Accountancy
ISSN 0204–3572. Ýëåêòðîí. ìîäåëèðîâàíèå. 2008. Ò. 30. ¹ 4 119
Register bookkeeping is characterized by the fact, that individual economic
events are presented in so called account ledgers which are analytical book-
keeping devices. Number of ledger can vary depending on the size and kind of
business activity. All the ledgers group homogenous operations from all the docu-
ments (purchase ledger, bank ledger, banking ledger, sale ledger). The ledger
presents the economic event history within the whole lifetime of this event. The
ledgers are prepared on monthly basis.
The advantages of register bookkeeping include opportunities to share work
in accountancy, opportunities to analyse a particular economic event, opportuni-
ties to include the detailed bookkeeping (analytical to the account ledgers). A
drawback is lack of systematic records on synthetic accounts and complicated
system of connections and relations from the record in the synthetic ledger to the
accounting document. Duplicating bookkeeping consists in registration of the
accounts (for systematic records) and the register (for chronological records) on
the cards. Number of account cards to a particular account depends on the
number of registered economic events.
Advantages of duplicating bookkeeping include opportunities to keep any
number of accounts, division of work in accounting departments, correctness,
opportunity to facilitate accounting works. Drawbacks include poor transparen-
cy, difficult control over economic events, double entry accounting activities for
each event and high number of devices necessary for registration.
Most of companies keep their books using computer technology, by means
of special-purpose software. Polish balance sheet law imposes numerous re-
quirements on computerized accountancy. Those requirements include: meth-
ods of bookkeeping; form of accounting records; printout of books and other
documents.
While keeping the books using a computer, accounting informational re-
sources organized in the form of separated computer databases, data sets or its
separated parts are found to be equal to the books, no matter the location of their
origin and storage. A condition to keep the information resources of an accounting
system in the form of computer database is the possession of a software which
enables to obtain transparent information with regards to the records made in
accounting books by printout and copying onto another computer data carrier.
Automatic control over continuation of the records as well as turnover and bal-
ance amounts brought forward should also be ensured. The accounting books
should be printed not later than at the end of the financial year. Moving the con-
tents of books into another data carrier which ensures the lifetime of the record
over five year is found to be equal to printout.
Records in books kept by means of computers should be characterized by:
numbering order;
J. Chluska
120 ISSN 0204–3572. Electronic Modeling. 2008. V. 30. ¹ 4
input of records into the books by means of the communication devices or
magnetic data carriers is permitted only when the records are given a fixed,
transparent form which reflects the content of accounting documents, a source of
its origin and the person responsible for input of these data can be traced, the ap-
plied procedure ensures checking of correctness of processing for relevant data
and the completeness and identity of records are ensured, source data are proper-
ly protected in a way ensuring its invariability for the period required for storage
of a particular accounting documents;
continuous method of calculation for records (turnovers) total. The method
of records input into the register should enable their unequivocal connection to
checked and approved accounting documents;
they should have the positions numbers added automatically as they are regi-
stered and the data which enable to trace the person responsible for the content.
Accounting books, either traditional or computerized, should hold the name
of the entity that they concern, name of the book, name of the processing soft-
ware, financial year, reporting period and the date of preparation. In the docu-
mentation of the accepted rules for accountancy in a company a method of data
processing (also in case of «by hand» method) is described. If the processing is
performed on a computer basis, the description of the employed software pro-
vides for the most important features of the computerized accountancy. Scope of
this description is contained in the Accounting Act (Art. 10 item 3).
In case of accounting books kept using a computer, an emphasis is made on
the safety of the data. Data protection should consist in application of the following
protective devices:
using the data carriers which are resistance to dangers;
selection of appropriate means of external protection;
systematic creation of backup copies for databases saved on computer carriers;
ensuring the protection for computer software and computerized accoun-
tancy system data by means of application of appropriate software and organiza-
tion solutions which protect against unauthorized access or destruction.
Detailed rules for data protection and stipulation of conditions for required
protection is determined by the entity itself, depending on the possessed infor-
mational resources.
Specificity of computerized accountancy. Each informational system, in-
cluding also computerized accountancy, should be characterized by credibility,
correctness, usability and efficiency. In order to fulfill these expectations, the ac-
countancy should be: reliable; error-proof; checkable; should reflect current
economic events [5].
Obligation to fulfil these conditions is important especially for computer-
ized accountancy. Computerized accountancy is connected with several threats
to the accounting data. The sources of these threats include the following com-
Functions of Computerized Accountancy
ISSN 0204–3572. Ýëåêòðîí. ìîäåëèðîâàíèå. 2008. Ò. 30. ¹ 4 121
ponents of the information systems: hardware, software (system and applica-
tions) and the persons connected with the system. Moreover, they can come
from the natural forces of information system environment [6].
Reliability of the books means the presentation of economic events accord-
ing to the true state; error-proof characteristics means a complete and appropri-
ate qualification and registration of the accounting documents in the books. The
errors which do not affect the balance (correctness of amount on the side of Dt
and Ct for particular accounts and, consequently, conformance of assets and lia-
bilities) may occur in computerized accounting. The most important control
function for computerized bookkeeping of economic events such as control of
the rule of double entry accounting, is, with the systems of computerized accoun-
tancy, performed automatically. The errors which can not be detected fast and
efficiently actually pose threats to the reliability of the result information.
Books are checkable when they enable the correctness of the records (bal-
ances) and procedures for calculations to be checked. It is proved by full docu-
mentation which enables the identification of accounting documents with the re-
cords in the books to be performed at each level of processing [7]. Accounting
records are ordered chronologically (register) and systematically (ledger
accounts), which enable the reporting obligations to be fulfilled under balance
and fiscal law.
The superior task of accountancy is to deliver reliable and credible eco-
nomic information which not only enables the assessment of a business unit to
be carried out but also provides the data necessary to management decision-
making. Thus a fundamental function of accountancy is an informational func-
tion. Due to this fact, numerous authors highlight this function by indicating its
place among other functions in the following way: information, analysis, settle-
ment, statistics [8]; control, information, statistics, analysis [9]; information,
analysis, control [10]; registration, control, reporting, analysis and interpretation
[11]; information, settlement, registration, planning, evidence, optimisation,
control, motivation, statistics and analysis [12].
Reporting function manifests in preparation of statements and reports ad-
justed to the needs of external and internal recipients. Evidence function is con-
nected with application of accounting devices as the evidence in possible law-
suits or fiscal proceedings. Optimisations function expresses in creation, by the
accounting system, of the basis for decision-making and formation of economic
future. Control function consist in application of accounting data for protection
of property against abuse, protection of the debtors, assessment of real economic
standing of an entity. Analysis function in accountancy consists in application of
figures from the statements for evaluation of current operation and for drawing
conclusions which facilitate making optimal decisions.
J. Chluska
122 ISSN 0204–3572. Electronic Modeling. 2008. V. 30. ¹ 4
Regarding the above mentioned characteristic it can be found that the ac-
countancy is mainly an information system where an important role is played by
economic or financial information whose fundamental designation is to meet the
informational needs of internal and external users. Increase in information de-
mands by the environment have caused extension of the functional and informa-
tion range of accountancy – mainly its analytic, planning and decision functions.
During realization of its ordinary functions, the accountancy should show reli-
able, quantified view of history and results for the economic events [13].
Extended memory capacity, speed and broad opportunities of computerized
systems of accountancy enable:
adding, to accounting data processing, various characteristics of economic
events and resources and consequently multi-sectional sets of information;
processing of huge databases in a short time;
providing, in data processing, for the analysis, simulations, modelling and
concluding;
use of information obtained from accountancy systems for analysis (data-
bases, data warehouses and artificial intelligence).
Use of computer for accounting books changes the method of data process-
ing and it can affect the organization and management in the entity. The before
mentioned features prove huge opportunities of extension of present traditional
systems of accountancy with functions parallel in relation to basic registration
functions of concluding in terms of decision making in a company. Modern sys-
tems of data processing enable to create, on the basis of information from ac-
countancy systems, early warning systems for warning against the risk to lose
the opportunity of business continuation or deterioration of financial and prop-
erty standing of the company. Strong connection of computerized financial ac-
countancy with company management cause that, apart from traditional function
of accountancy, a new, managerial function appears.
Conclusions. Application of modern methods of collection, processing,
analysis and access to accounting information significantly affected the view of
information system in companies. Usability and efficiency of modern computer-
ized accountancy systems depends however on various conditions of an internal
and external nature. For many entities the modern computerized accountancy
systems are still out of reach due to financial and organizational reasons. The dy-
namics of economic processes forces the integration of accounting systems as a
reliable and credible source of information with the system of management.
There is no turning point here. The companies, apart from developing the sys-
tems of accounting data processing, must put the emphasis on data safety.
Changing the computerized accountancy system into the information database
for managing the entity has become a key factor for operation and development
of companies.
Functions of Computerized Accountancy
ISSN 0204–3572. Ýëåêòðîí. ìîäåëèðîâàíèå. 2008. Ò. 30. ¹ 4 123
²íôîðìàö³ÿ, ùî óòâîðþºòüñÿ ó ñèñòåì³ áóõãàëòåðñüêîãî îáë³êó, âñå ÷àñò³øå âèêîðèñ-
òîâóºòüñÿ ìåíåäæìåíòîì êîìïàí³¿. Òîìó ïîòð³áíî, ùîá êîìï’þòåðèçîâàíèé îáë³ê çàáåç-
ïå÷óâàâ íå ò³ëüêè ðåòðîñïåêòèâíîþ, àëå é ïåðñïåêòèâíîþ ³íôîðìàö³ºþ. Íàâåäåíî ôóíêö³¿
êîìï’þòåðèçîâàíîãî áóõãàëòåðñüêîãî îáë³êó, ïîâ’ÿçàí³ ç ³íôîðìàö³éíèìè î÷³êóâàííÿìè
îòðèìóâà÷³â ³íôîðìàö³¿.
1. Skrzywan S. Teoretyczne podstawy rachunkowo�ci (Fundamental theory of accountancy). —
Warsaw : PWE, 1973. — P. 155.
2. Gmytrasiewicz M., Karmanska A. Rachunkowo�� finansowa (Financial accountancy).—
Warsaw: Difin, 2004. — P. 26.
3. Ustawa z dnia 29 wrze�nia 1994 r. o rachunkowo�ci. — T. j. DzU z 2002 r. Nr 76, poz. 694 z
p��n. zm.), art. 4 ust. 3. (Accounting Act of 29 September 1994//J. of Laws of 2002, No. 76
item 694 with further amendments).
4. Ibidem, art. 3 item. 1 point 11.
5. Ibidem, art. 24.
6. Skowronski J. (red.) Prowadzenie i rewizja ksiag rachunkowych przy technice kompu-
terowej (Registration and auditing of the books with computer technology), — ��d�:SKwP,
1990. — P. 84.
7. Idzikowska G., Kwasiborski A., Majdziak J., Owczarek K., Owczarek Z., Skowronski J.
Rewizja finansowa w �rodowisku informatycznym (Financial audition in informational en-
vironment). — Warsaw : REWIKS, 1997. — P. 17.
8. Skrzywan S. Teoretyczne podstawy rachunkowo�ci (Fundamental theory of accountancy). —
Warsaw : PWE, 1969. — P. 246.
9. Peche T. Teoretyczne podstawy rachunkowo�ci (Fundamental theory of accountancy). —
Warsaw. — 1988. — P. 55.
10. Jarugowa A., Skowronski J. Rachunek koszt�w w systemie informacyjnym przedsi�biorstwa
(Costing in information system of companies). — Warsaw. — 1975. — P. 25.
11. Messner Z., Klimas M. Teoretyczne podstawy rachunkowo�ci (Fundamental theory of ac-
countancy). — Warsaw : PWN, 1986.— P. 12.
12. Sawicki K. Problem funkcji i kierunkow rozwoju rachunkowo�ci jednostek gospodarczych,
(Problems and directions of development in business units accountancy)//Zeszyty Teore-
tyczne Rady Naukowej SKwP. — 1994. — ¹ 28. — Ð. 120.
13. Micherda B. Analityczna funkcja rachunkowo�ci w okresie przej�ciowym do gospodarki
rynkowej (Analytic function of accountancy during period of transition into a market econo-
my) — Krak�w : Wydawnictwo Akademii Ekonomicznej w Krakowie, 1998. — Ð. 155.
Ïîñòóïèëà 29.03.07
J. Chluska
124 ISSN 0204–3572. Electronic Modeling. 2008. V. 30. ¹ 4
'
'
'
'
|
| id | nasplib_isofts_kiev_ua-123456789-101587 |
| institution | Digital Library of Periodicals of National Academy of Sciences of Ukraine |
| issn | 0204-3572 |
| language | English |
| last_indexed | 2025-12-07T15:42:58Z |
| publishDate | 2008 |
| publisher | Інститут проблем моделювання в енергетиці ім. Г.Є. Пухова НАН України |
| record_format | dspace |
| spelling | Chluska, J. 2016-06-05T12:13:16Z 2016-06-05T12:13:16Z 2008 Functions of Computerized Accountancy / J. Chluska // Электронное моделирование. — 2008. — Т. 30, № 4. — С. 117-124. — Бібліогр.: 13 назв. — англ. 0204-3572 https://nasplib.isofts.kiev.ua/handle/123456789/101587 The information created within accountancy system is more and more frequently used in company’s management and the computerized accountancy is expected to provide information not only retrospective by also prospective one. This paper presents functions of computerized accountancy related to informational expectations of information recipients. Информация, создаваемая внутри системы бухгалтерского учета, все чаще используется менеджментом компании. Поэтому требуется, чтобы компьютеризированный учет снабжал не только ретроспективной, но и перспективной информацией. Представлены функции компьютеризированного бухгалтерского учета, связанные с информационными ожиданиями получателей информации. Інформація, що утворюється у системі бухгалтерського обліку, все частіше використовується менеджментом компанії. Тому потрібно, щоб комп’ютеризований облік забезпечував не тільки ретроспективною, але й перспективною інформацією. Наведено функції комп’ютеризованого бухгалтерського обліку, пов’язані з інформаційними очікуваннями отримувачів інформації. en Інститут проблем моделювання в енергетиці ім. Г.Є. Пухова НАН України Электронное моделирование Применение методов и средств моделирования Functions of Computerized Accountancy Article published earlier |
| spellingShingle | Functions of Computerized Accountancy Chluska, J. Применение методов и средств моделирования |
| title | Functions of Computerized Accountancy |
| title_full | Functions of Computerized Accountancy |
| title_fullStr | Functions of Computerized Accountancy |
| title_full_unstemmed | Functions of Computerized Accountancy |
| title_short | Functions of Computerized Accountancy |
| title_sort | functions of computerized accountancy |
| topic | Применение методов и средств моделирования |
| topic_facet | Применение методов и средств моделирования |
| url | https://nasplib.isofts.kiev.ua/handle/123456789/101587 |
| work_keys_str_mv | AT chluskaj functionsofcomputerizedaccountancy |