By the end of this lesson you should be able to : *To explain how ICT is used in accounting systems
Financial Systems These include: Accounting systems Payroll systems Banking systems Payroll Systems The transaction processing subsystems used to produce paychecks for employees are called payroll-processing systems.This system iuses a computer to process employeess salaries as well as producing reports, for instance a payslip for each employee, and other reports for the tax department.With a computerized payroll system, accurate data is guaranteed as validation checks are put in place for data entered. Additionally, payroll-processing system must keep track of such items as Social Security payments, union dues, and group insurance deductions. Accounting Systems General ledger Accounts receivable Accounts payable Cashbook Account receivable In many firms, customers pay by credit card or have goods charged to their accounts. The account receivable system in the transaction processing system that manages customer purchase records, payments, and account balances. keep track of amount owed by each customer. Accounts Payable Keep track of the amount the business owes others e.g suppliers,tax organisations,transport etc. Helps management to produce cheques for payment of these amounts General edger accounting is used to keep track of how much a business make and its worthiness by summarising financial transactions. it produces reports on income, sources of income,expenses and the net profit and loss earned. Cash book Used to record daily cash transactions. It records receipts and cash payments. The cashbook has two accounts: Cash account The bank account cash and bank balances can be checked easily with the help of cash books.
