Accounting and Finance Foundations

Unit 6

Accounting and Finance Foundations Unit 6: Journalizing 462

Journalizing

Chapter 6

Student Guide

Computerized Accounting Systems

Computerized accounting systems have eliminated the use of physical book ledgers as well as some of the

manual recording of business transactions in the general journal and the posting of these business transactions

into the general ledger. Computerized accounting systems such as QuickBooks, Peachtree, Quicken, ERPs

(Enterprise Resource Planning Systems), and Excel workbooks provide accountants and business owners

with more options for keeping the general journal and for posting transactions into the general ledger. In most

cases, you can use a computerized accounting system to manually enter the chart of accounts for a specific

business and then enter the source documents directly into the software.

However, regardless of whether the business is using a computerized accounting system to record business

transactions into the general ledger or manually recording them, the accounting cycle is still completed in

the same order. Technology is certainly a more efficient way of doing business, but technology does not

always possess the judgment or logic to find mistakes.

Chapter 16

Lesson 16.1 The Accounting Cycle: Steps Two through Four (cont’d)