Computerized Accounting(tally) -PPT.pptx

Computerized accounting

1. What is Automation The dictionary defines  automation  as “the technique of making an apparatus, a process, or a system operate automatically "the creation and application of technology to monitor and control the production and delivery of products and services.”

2. Automation encompasses many vital elements, systems, and job functions. Automation provides benefits to virtually all of industry. Here are some examples:   Manufacturing , including food and pharmaceutical, chemical and petroleum, pulp and paper   Transportation , including automotive, aerospace, and rail   Utilities , including water and wastewater, oil and gas, electric power, and telecommunications   Defense   Facility operations , including security, environmental control, energy management, safety, and other building automation And  many others

3. Types of Industrial Automation Systems 1. Fixed Automation Fixed automation systems, also known as hard automation, are designed to complete a single set of tasks repeatedly. Fixed automation systems typically are used for discrete mass production or continuous flow systems. An example of a fixed automation system is an automated conveyor belt in the auto manufacturing industry that moves objects with minimal effort, increasing efficiency.

4. 2. Programmable Automation Programmable automation systems are controlled by commands delivered by a computer program. Because of this, the automated processes can vary based on the instructions sent to the computer by the designer’s code. Programmable automation is commonly used in settings where similar items are produced using the same automated steps and tools. For example, paper and steel rolling mills use the same steps to create many different types of products. 3. Flexible Automationn Flexible automation, also known as soft automation, is typically used in batch processes with a variety of products. Each piece of equipment is given instructions for a computer operated by a human, so changing code can be delivered to the computer, allowing for more flexible production. The primary advantage of flexible automation is that the product changeovers occur quickly and automatically because they are conveyed by the control system, eliminating the extra time required to reconfigure the equipment in between batches. Industries that use flexible automation include textile manufacturing, food processing or paint manufacturing.

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6. 4. Integrated Automation Integrated automation systems involve totally automating manufacturing plants with minimal human involvement. Computers can be used to design parts, test the completed designs and then fabricate the new parts. Integrated automation can be used with continuous process manufacturing and batch process manufacturing.

7. Benefits of Industrial Automation Lower operating costs.  Industrial automation systems eliminate the need to pay employee wages and benefits. Higher productivity.  Companies can hire hundreds of employees to work round-the-clock shifts, but they still need breaks, days off and holidays. Completely automated plants can operate 24/7. High-quality products.  Automation can help reduce the amount of error associated with human workers creating products, resulting in a higher quality product being produced. Greater flexibility.  Rather than having to train an employee for a new task, a simple computer code can quickly change a production process.

8. Benefits of Industrial Automation Increased safety.  Using robots or other types of automation systems can keep workers out of dangerous situations. More accurate data collection.  Automated data collection gives you access to key production information and reduces your data collection costs, so you can make more efficient decisions about your manufacturing process.

9. WHAT IS ACCOUNTING AUTOMATION? Accounting Automation is the process of using software to automate the processes and procedures of accounting. It is a way of improving efficiency and accuracy while ensuring that all aspects of the business are being looked after. Accounting automation can be used for: Records storage Invoice creation Invoice processing Invoice payouts Audit preparation Budgeting and forecasting Accounting automation can be used in many different situations, from small businesses to large corporations and even government agencies. The main goal is to provide companies with a  more efficient way of handling their finances so that they can concentrate on other aspects of running their business.

10. BENEFITS OF ACCOUNTING AUTOMATION 1/ IT ELIMINATES HUMAN ERROR Accounting automation reduces human error because it can be programmed to  follow strict protocols when performing any task . For instance, it can be used to  automatically reconcile accounts  by comparing current bank statements with prior statements, so you won't have to manually check every transaction each month or quarter. It also reduces human error because it can be programmed to  automatically enter the accounting entries  from the invoices in the accounting software

11. 2/ IT IMPROVES DATA QUALITY To understand how accounting automation improves data quality, it’s important to understand how much manual work goes into traditional bookkeeping.  Accounting staff often spend   hours each month manually entering data  into different systems and matching up transactions that are made on paper checks against electronic ones. The process can be tedious and prone to human error — especially when it comes time to reconcile accounts with bank statements or other third-party vendors. Accounting software helps eliminate these problems by automating both data entry and reconciliation processes.

12. 3/ IT KEEPS YOU MORE ORGANIZED Accounting software helps you stay organized by keeping all of your financial information in one place. This means that instead of having to sort through piles of paper receipts and invoices, you can keep everything in one place and easily access it whenever needed. Better record keeping  – Automation will keep your records up-to-date, so you don't have to worry about missing any important transactions or tax deadlines. Easier bookkeeping  – You can use accounting software to track all of your income and expenses, which makes it easier to fill out tax forms at the end of the year.

13. 4/ HELP WITH REGULATORY COMPLIANCE AND REPORTING By providing you with accurate information at your fingertips, accounting automation provides you with an  accurate view of your financial position  so that you can easily manage your business. The software also allows you to create reports that meet regulatory requirements while also helping you save time on preparing them manually. 5/ IT ENSURES COMPLIANCE WITH INTERNAL CONTROLS Accounting automation is used in all organizations to  automate their financial processes  and to improve efficiency in data handling.  Accounts payable ,  accounts receivable , payrolls, fixed asset management, cash management and general ledger are some of the areas where accounting automation can  help reduce manual effort considerably . It also helps in speeding up the entire process by ensuring accuracy at every stage of the process.

14. 6/ IT MAKES IT EASIER TO SHARE INFORMATION AND COLLABORATE WITH OTHERS ACROSS YOUR ORGANIZATION Accounting automation enables organisations to transfer data between multiple systems or applications using software tools that automate repetitive tasks. This allows you to connect accounting software with other systems in your organization — including  CRM, HR and eCommerce  — so that you can share data more easily between them. The biggest benefit of accounting automation is that it makes it easier for accountants and bookkeepers to  review their clients’ financial data in real-time . This makes it easier for them to make informed decisions about tax planning, billing and other important aspects of running a business. It also helps you  stay in compliance with the law  and reduces the amount of time it takes to complete certain tasks like reconciling accounts or producing reports.

15. Drawbacks of Accounting Process Automation Upskilling employees. Working with new technology naturally requires accounting teams to learn how to correctly adopt APA software. Upskilling may require patience as every employee will have different levels of comfort with using technology and relying on computerized processes to handle accounting tasks they had previously completed manually. Workflows needing updates. A well-defined automated workflow can work wonders, but a poorly adapted workflow, or one that has not been sufficiently tested, can lead to chaos and accounting errors on a large scale. Testing, iterating and perfecting APA workflows is the key to avoiding issues. Change management. Resistance to change is a universal human trait, and accounting teams are not immune. They must be encouraged, supported and given the resources they need to learn how automation will make their jobs easier, so they can embrace APA and integrate the use of automation in their daily work.

16. Accounting Tasks Your Business Can Automate Now Accounts payable. Automating AP simplifies payment processes across the board. It helps accounting teams better track invoice due dates and ensures the on-time payment of vendor bills. What’s more, APA minimizes the risk of fraudulent invoices slipping by, flagging any the system deems suspicious or otherwise problematic. 2. Accounts receivable. Automating AR helps companies  manage their cash flow , improve invoice accuracy and reduce processing costs significantly. Opportunities to automate exist throughout the  AR process , from scheduling invoices to be sent to the collection of past-due payments. 3. Payroll. Manual payroll is a major time drain for companies with limited accounting resources, especially as they grow and the demands on their accounting teams increase. Automating payroll processes helps to ensure employees are paid on time and that an overworked team never misses filing any important payroll forms.

17. 4. Month-end financial closes. The  month-end financial close process  is an essential business task, but it also can be one of the most stressful for finance teams. Accountants are under growing pressure to complete their monthly closes more quickly, which inevitably leads to rushed processes and questions around the validity of end-of-month results. Automation of the monthly close alleviates many of these pressures around speed and data accuracy, helping accounting teams deliver faster results without sacrificing quality. 5. Procurement. Procuring goods and services from external suppliers has traditionally involved a great deal of paperwork, all of which must be reviewed and processed manually by multiple stakeholders. By automating procurement processes like purchase order management, companies can cut significant time and cost from their procurement process without sacrificing the integrity of their processes or affecting their supplier relationships.

18. 6. Expense reports. Expense reports are a necessary evil. At many companies, employees still need to print their expense reports as spreadsheets, staple receipts to forms manually and submit the whole package to accounting for approval. Automated expense reports allow employees to digitally fill out and share their expenses with accounting, reducing the administrative burden and paper pileup for all parties. 7. Sales order process. A clear sales order process is the key to ensuring customer orders are completed and shipped on time at the right price. Automation software allows businesses to codify every step of their sales order processes, ensuring they consistently meet customer expectations.

19. 6 Steps to Automating Your Accounting Processes Automating accounting processes isn’t as simple as just buying APA software. It requires a methodical approach that starts with understanding the tasks that need to be automated, breaking them down step by step and adapting manual workflows to the way APA software works. It also involves testing to make sure the automated workflows perform as intended. Here are six steps businesses can take to automate their accounting processes. Step 1: Analyze current accounting processes. Many, but not all, accounting processes can be automated. The best candidates for automation are tasks that require employees to do frequent, repetitive work, involve few interpersonal connections and take little to no creativity. The aim of automation is to boost speed and efficiency to help accounting teams, not replace them altogether.

20. Step 2: Evaluate existing technologies. APA is a software-based approach. The best automation approach for a business will depend on its existing accounting technologies and software applications, whether these systems already speak with each other or need to be integrated. In the latter case, cloud-based APA solutions are a popular option that unifies a company’s accounting and finance systems on a single platform where data is created, shared and processed in a common language.

21. Step 3: Assign a project owner. Automated processes run on software alone, but it’s still important to have a human being oversee APA workflows to make sure everything runs smoothly and troubleshoot problems on the rare occasions they arise. For example, software runs off of rules set by users or the company admin, and those rules can cause inaccuracies in payroll, leading to late payments. A project owner can spot and address that issue before it affects employees, or at least mitigate the effects by fixing the problem quickly.

22. Step 4: Create and document current workflows. The goal of APA is to simplify existing workflows and make them more efficient, and the best way to do that is to look for opportunities to streamline processes. By breaking down existing workflows at a granular level, businesses will then see where they can be improved and how to best re-create tasks with an APA solution.

23. Step 5: Automate based on the updated workflow. Every workflow in a business can be broken down into three parts: a trigger, an action and an outcome. When automating workflows, it’s important to spell out these three parts at a granular level to ensure they deliver the intended results every time. Consider, for example, a simple workflow in the purchase order (PO) approval chain. A trigger might be the submission of a new PO from your procurement manager. That trigger would in turn set off an action, such as an automatic email to the relevant stakeholder in your business that the PO is ready for approval. The desired outcome is an approved PO.

24. Step 6: Test and iterate. To make sure that an automated workflow delivers the intended results consistently, businesses can test and iterate. One test run might be enough, but it’s common to test and iterate a few times to iron out wrinkles, especially when adapting manual workflows for automation software.

25. Examples of Accounting Process Workflows Employee gathers records. The employee collects the receipts, credit card statements, bills and any other documents that prove a purchase was made. Employee creates report. Expense reports are the primary documents an employee uses to make their expense claims. They are generally submitted monthly. Report routed for initial approval. Once submitted, an employee’s expense report is first validated by the person’s direct supervisor and company’s accounting team.

26. Examples of Accounting Process Workflows Senior approvers prompted to review. Once validated, the report is sent to other internal stakeholders — often managers and team leaders — to ensure the entries are legitimate and reimbursable. Expense report approved. Senior stakeholders review the expense report, approve it or send it back to accounting for revision. In the latter case, the process goes back to the beginning. Expense report sent to accounts payable. Once approved, the expense report goes to the AP coordinator to be posted and scheduled for on-time payment.

27. Verification of receipts. Receipts submitted with the expense report are verified and filed for tax and accounting purposes. General ledger or tax codes added. An accounting employee enters the correct ledger and/or tax code for each line item on the expense report. Expense report posted. With all the necessary information now included, expense items are added to the business’ accounting or ERP system, reviewed and approved, and then posted to the general ledger so that the employee can be paid.

28. Expense reimbursement authorized. The employee’s expense reimbursement is authorized and a payment date is set based on the company’s expense management schedule. Employee reimbursed. The employee receives their reimbursement payment.

29. What Are The Effects Of Technology On The Accounting Industry? It’s undeniable that technological innovation has impacted accounting in multiple ways, especially by boosting efficiency. Through automation, accounting software is transforming a range of tasks, especially those involving crunching numbers. Big data, cloud-based accounting and artificial intelligence (AI) are just some areas that show huge growth and potential, and that are playing major roles in the industry and businesses alike.

30. How Has The Role Of An Accountant Changed Automation Integration More accountants are using automation tools to do repetitive tasks. This frees up their time so they can focus on more demanding parts of the job, like financial projections and strategic decision-making. Data Analysis and Interpretation Automation lets accountants analyze vast datasets to extract meaningful insights, so they can help businesses make better financial decisions. Strategic Advisers Thanks to automation, accountants have transitioned from number-crunchers to strategic advisers, providing financial insights and guidance for business growth.

31. Technology Proficiency To stay relevant, accountants have to keep learning, as technology keeps changing. Along with leveraging automation, skills like data analytics and understanding emerging tech like blockchain is becoming increasingly important. This extends to keeping up to date with industry trends. Risk Management and Compliance Accountants now need to ensure compliance with constantly changing financial regulations, as well as setting up robust internal controls. Automation makes these complex processes much faster and simpler. Cross-functional Collaboration With their roles expanding, accountants need to be able to communicate and collaborate, especially with people who don’t understand ‘finance speak’. Soft skills such as critical thinking and adaptability come into play, and are just as important as mastering new technology.

32. eXtensible Business Reporting Language (XBRL) What Is eXtensible Business Reporting Language? XBRL or eXtensible Business Reporting Language is a software standard that was developed to improve the way in which financial data is communicated, making it easier to compile and share this data. Notably, eXtensible Business Reporting Language is an implementation of  XML  (extensible markup language), which is a specification that is used for organizing and defining data online.

33. Understanding eXtensible Business Reporting Language Imagine that you are looking at a company's  financial statements  online on the company's website. Traditionally, these statements would simply be in plain text. If you wanted to put these numbers into a spreadsheet file to run analysis on the statements, you would have to either manually type or copy and paste each account and corresponding number into the spreadsheet. However, if the data on the site was available in eXtensible Business Reporting Language (XBRL), you could simply convert this data from the website into a spreadsheet program (usually instantaneously) that is XBRL compatible.

34. Understanding eXtensible Business Reporting Language Due to the standardized nature of the identification tags and the language itself, financial data from one country, which has set accounting standards such as U.S.  GAAP , can be easily compiled into the accepted accounting standards of another country even if they are drastically different. The reporting of financial data in XBRL is not required by all companies, but because it has become prevalent, it has been suggested that it won't be long before all companies will have to report their financial data in this language. iXBRL , where  i  stands for inline is an update that allows for XBRL metadata to be embedded in an HTML document. XBRL was developed in 1998 with version 1.0 by the American Institute of Certified Public Accountants ( AICPA ). The latest version of the standards, v2.1 was formalized in the year 2003. While the v2.1 standard has remained stable since then, several XBRL modules have been developed that can be plugged in to achieve new functionality or operability.

35. Blockchain Blockchain technology is an advanced database mechanism that allows transparent information sharing within a business network. A blockchain database stores data in blocks that are linked together in a chain. The data is chronologically consistent because you cannot delete or modify the chain without consensus from the network. As a result, you can use blockchain technology to create an unalterable or immutable ledger for tracking orders, payments, accounts, and other transactions. The system has built-in mechanisms that prevent unauthorized transaction entries and create consistency in the shared view of these transactions.

36. Advantages and Limitations of Block chain technology