October 28, 2014

Assignment on Traditional Accounting vs. Computer Based Accounting



1.1 Introduction
In today’s world academic education is not adequate to enable a student to compete with confidence and reach his/her goal without having depth knowledge about some particular fields. In order to have details idea and depth knowledge about any field or topic, we, the students of Department of Accounting and Information Systems, especially in the BBA program, University of Dhaka, have to undertake 6 weeks internship or thesis program.

As a part of my BBA program, the six weeks thesis program gave me the opportunity to have details knowledge about the challenges of traditional accounting because of technology based accounting. The assignment was how the traditional accounting is differing from the Computer based accounting.


To face much more complex and challenging business world in the challenging business areas, depth knowledge about any particular area is very much necessary. The detail knowledge can be acquired by analyzing the area by making a thesis. To gather this knowledge I was assigned by the topic of traditional accounting and its challenges in the present world.

This study gave me an opportunity to make me able to understand the challenges of the traditional accounting in the present world as well as the challenges faced by the accountants in term of securing their accounting jobs. I have been able to identify main loopholes of the traditional accounting. I have also identified the reasons of getting popularity of Computer based accounting systems.


1.2 Background of the Study
The world is changing rapidly. Traditional manual system is going to be converted into technology based modern system totally. Now-a-days, it is not possible to think about the accounting without technology. Traditional accounting system refers to the system of recording the accounting transactions according to the method suggested by the father of accounting Luca De Pacioli. The traditional accounting information system is based upon what is typically called the accounting cycle and is based on the accounting equation. Although the ideas documented by Pacioli have been modified over the years, the essence to his original proposal remains intact.    The main weakness of the traditional accounting is a lack of integration across functional areas of the organization. Many organizations have separate systems for each functional area. This duplicates the number of journal entries and the amount of data stored within the systems.

Computerized based Accounting System refers to the integration of different component systems to produce computerized books of accounts and computer-generated accounting records and documents. Certainly Pacioli’s original ideas were nothing short of brilliant in terms of proposing a method for recording, maintain, and reporting economic data with a fairly primitive information technology. However, today’s world and the profession’s desire to move forward allow AIS designers to rethink the basic architecture of the AIS. Moreover, today’s technology makes rethinking AIS possible. Although there were stewards, auditors, and bookkeepers in ancient times, the professional accountant is a 19th-century development. Unlike those precursors, modern accountants usually do not service a single client or employer; instead they offer their expertise, for a fee, to several individuals and businesses. The profession was first recognized in Great Britain in 1854, when the Society of Accountants in Edinburgh was given a royal charter. Similar societies were later established in Glasgow, Aberdeen, and London. In the United States the first such professional society was the American Association of Public Accountants, chartered by the state of New York in 1887. The auditors and accountants are facing some challenges in the present world. The accounting jobs also face the challenges because, it is not only for the accountants now, and anyone can be able to get the accounting related job after being skilled in accounting software application.................................................................................................................................................
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