Essay on Computers

In this essay we will discuss about computers. After reading this essay you will learn about:- 1. Meaning of Computer 2. Benefits of a Computer 3. Disadvantages of Computer 4. History of Computers 5. Generations of Computers 6. Some Common Terms Associated with Computers 7. Types of Computers 8. Computer Memory 9. Application of Computers.


  1. Essay on the Meaning of Computer
  2. Essay on the Benefits of a Computer
  3. Essay on the Disadvantages of Computer
  4. Essay on the History of Computers
  5. Essay on the Generations of Computers
  6. Essay on the Some Common Terms Associated with Computers
  7. Essay on the Types of Computers
  8. Essay on the Computer Memory
  9. Essay on the Application of Computers

1. Essay on the Meaning of Computer:


Before highlighting the application of computers in accounting, the students should grasp the basic and fundamental ideas about the computer which is explained as follows:

Computer is considered as an invaluable aid to the business activities in the area of industry, trade and commerce in the present day world. Practically, it is impossible to carry out modernised activities relating to industry, trade and commerce without its help. Computer may be considered as the nervous system of the above activities.

Computer is an electronic device which helps not only in data processing but also solves the various types of problems that may arise in the field of industry, trade, commerce, education and scientific calculation.

Moreover, it can store information in its memory and produces the same whenever required by anyone. Needless to mention here that it can process data much faster than any other device including human beings, i.e. it can produce the required information promptly.

But we should remember that computer is nothing but a machine which is operated by human beings. Naturally, its function depends entirely upon human design of the system where it is to carry out instructions so given. Thus, sometimes its performance is called GIGO (Garbage In and Garbage Out), e.g., for an addition of 2 and 3 if the operator inputs 2 and 4 in keyboard, the result will be 6 instead of 5. This is an error committed not by the machine but by the man, i.e., the operator.

Thus, USASI says “Computer means a device capable of solving problems by accepting data, performing discreted operations on the data and supplying the result of these operations”. In short, it is an electronic machine by which data are processed speedily in an efficient manner as well as in an organised manner. Needless to mention here again that the modern forms of computers are very powerful, efficient and fast- acting.


At present, any kind of work can easily be done by it. It is made up of wires, transistors and integrated circuit that are assembled on a frame. Practically, in earlier years, a computer meant a machine by which any type of computation could be made. But, at present, it is used to designate a machine by which any kind of calculating activity can be done.

2. Essay on the Benefits of a Computer:

The following benefits may be derived from a computer:

(i) Speed:

A computer can perform its work very fast.


(ii) Accuracy:

A computer can do its work exactly, i.e. it always produces accurate result.

(iii) Diligence:

Unlike human beings, a computer is free from monotony, tiredness, lack of concentration, etc.


(iv) Versatility:

A computer is capable of performing almost any task, switching from one to another, provided that the task can be reduced to a series of logical steps.

(v) Storage:

A computer can store, as well as recall any amount of information because of its storage device, i.e. it has extensive memory power to store a lot of information.

(vi) Automatic:

Computers can operate automatically, i.e. it does not require any human interference at each stage of the process while in progress.

(vii) No feeling:

Computers are devoid of emotions.

(viii) Area of operation:

Computers may be used in various areas, viz. industry, trade, commerce and various other fields for its application.

3. Essay on the Disadvantages of Computer

Even Computer is not free from snags.

Some of them are given below:

(i) Power:

It entirely depends upon electricity.

(ii) Stoppage of work:

Being a machine, a small defect in the system halts the entire working.

(iii) Unemployment Problems:

It invites unemployment problems to some extent, as it can do more work faster than that of quite a large number of human beings and in a much shorter time.

(iv) Maintenance Cost:

Its maintenance cost is very high because it needs air conditioning, a room free from dust etc.

(v) Flexibility:

Computer undergoes constant change and updations which increases its cost of establishment and more money is blocked.

4. Essay on the History of Computers

The history of computer begun when men first used their fingers and toes as counting aids. Since then many steps were taken towards the invention of an computer. By 650 BC the Egyptians used a system of hieroglyphics and cave-wall pictures to show numbers. But problems arose as they were not portable. They were useful only at the specific place and other people from distant places would have to come to see the same.

At a later stage, the Egyptians introduced an interesting system. They made three grooves in the sand and put pebbles into each groove in order to record each item to be represented. For additions, they began groove by groove, starting from the right side. But this also was not free from snags since the same was also riot portable. Later on, in order to make it more mobile, they put sand and pebbles into a box to form the first crude Abacus.

After more time, the Romans invented a device known as a tally-stick. It was nothing but a simple wooden stick with a line down the centre and this was used for business and other transactions. Naturally, a notch was made on the stick to record each aspect of transaction. When the transaction was computed, the stick was divided into two and each partner received half as a receipt. But this was also not free from snags.


Abacus had its origin in China in a period as early as between 2000 and 5000 BC. It is a biunique device. It is still very much in use today. The position in an Abacus indicates its value. With the Abacus, the beads could be said to have a state of physical representation. A bead being either up or down affected the meaning of its value.

This concept of a number being represented as a physical state was to become the basis of a very important computer concept. In short, Abacus is simply a rectangular wooden frame with horizontal rods which carry round beads. This frame is divided into two parts by a horizontal rod. As such after proper positioning the beads, simple additions and subtractions could be made efficiently at a comparatively high speed. It was also known as Soroban computer.

Another manual calculating machine was also developed by a Scottish mathematician John Napier (1550 – 1617) which is known as Napier’s Bone in the 17th century and it was made more powerful afterwards. In 1617, however, he invented the principles of logarithm for calculating large multiplications and divisions. After 6 years of the development of logarithm method another calculating device called Slide Rule was developed in Germany by William Ought-red (1575-1660).

In 1642, a French mathematician Blaise Pascal (1623-1662) had developed an adding machine which was the first calculating machine or calculator. In that machine he used several wheels which was marked as ‘hundreds’ wheels, ‘tens’ wheels, ‘unit’ wheels etc.

In 1673, the famous German mathematician Gottfried Leibnitz developed a machine by which addition, subtraction, division and multiplication were easily done.

It is interesting to note that 19th century was the golden time for the development of computers. Herman Hollerith, a German scientist, developed the punch card system in U.S.A.

In 1830, Charles Babbage (1792-1871), a professor at Cambridge University, developed a machine which is regarded as the first modern digital computer. He is called the father of computer. In 1822 he first designed and developed a machine known as Difference Engine.

Again, in 1842, he designed another machine which was more advanced than the earlier one and known as Analytical Engine. Although his machine did not bring commercial success, his work was highly appreciated by Lady Ada Augusta. She suggested that computers may be programmable in future. For this she is known as world’s first programmer. Her name is used in programming language.

5. Essay on the Generations of Computers

Generation refers to the advancement of a computer technology over the years. There are a few distinct features of a computer made since the mid-40s of the 20th century. Therefore, these can be classified into different stages called generations.

First Generation Computers (1946-58):

All the computers from Mark One to Universal (ENIAC, EDVAC, EDSAC etc.) fall into this category.

The distinct features of these machines were:

(i) They were very large in size;

(ii) Vacuum tubes were used as switching devices;

(iii) They occupied a very large area;

(iv) They consumed a lot of power;

(v) They were very large and could not be transported because of the large vacuum tube in them; they also consumed a lot of power and had to be shut down for cooling;

(vi) They also undertook frequent repairs; and

(vii) Their working speed was in the order of milliseconds (1,000 milliseconds = 1 second).

Second Generation Computers (1959-63):

A big resolution was brought about in the field of electronics with the invention of transistors in 1946. Another important innovation in this period was magnetic cores. In this period magnetic disks were used for storage.

Their characteristics were:

(i) They had transistors as switching device;

(ii) Their sizes were largely reduced;

(iii) They had faster input-output units, better storage capacity and greater programming ability;

(iv) They were more reliable than vacuum tubes;

(v) They consumed less power;

(vi) Their speed of working was in micro-second (1 micro-second = 1/1000000 second = 10-6 sec.

(vii) Many high level language like COBOL (Common Business Oriented Language); BASIC (Beginners All-purpose Symbolic Instruction Code), PL/I were developed.

Third Generation Computers (1964-75):

During the development of micro electronic technology it was possible to indicate large number of circuit elements into every small surface silicones known as Chips. This technology was called ‘Integrated Circuit ‘or’ I.C.’. This third generation was based on IC technology and the computers were designed with the use of integrated circuit.

Their features were:

(i) They were smaller in size in comparison with previous generation computers.

(ii) These were more reliable than second generation computers.

(iii) Even lower heat generated than second generation computers.

(iv) These computers were able to reduce computation time from micro 10-6 to nano 10-9 seconds (1,000,000,000 nanoseconds = 1 second).

(v) Maintenance cost was low because hardware failure was rare

(vi) They were easily portable.

(vii) They were commonly used for various commercial applications all over the world,

(viii) Power consumption was less,

(ix) Commercial production was easier and cheap.

The computer programming language developed during this period were RPG, ALGOL etc.

Fourth Generation Computers (1976-85):

A fourth generation computer has Small Scale Integration (SSI) chips A whole computer circuit was available on a single chip. In SSI type of integrated circuits (IC) there were maximum 20 basic components i.e., 20 basic components could be replaced by using a single SSI integrated circuit. During this period, MSI (Medium Scale Integration); LSI (Large Scale Integration); and VLSI (Very Large Scale Integration) were developed.

Their features were:

(i) They were very powerful in mathematical calculation and data processing as well.

(ii) Consumed very less power and heat generation was also less.

(iii) Very small in size.

(iv) Cheapest among all generations of computers.

(v) 4 GL language was used to operate these computers.

(vi) Very fast operation in the range of nanoseconds (1,000.000,000 nanoseconds = 1 second)

(vii) Hardware failure is negligible.

(viii) Minimum maintenance is required.

Fifth Generation Computers (1986 onwards):

Although present form of computers work very fast and can perform all sorts of activities, they do not, however, possess any kind of intelligence. In other words, to get a work done by a computer instructions are given in details, step by step. But if a mistake lies in any step, the computer will locate the errors.

Since the computer has no basic intelligence to understand the actual meaning, it will not work for a simple spelling mistake. But at present modern computers have got some Artificial Intelligence or AI.

They will be able to take the right decisions if they have been previously programmed in those directions. It is needless to mention here that an intelligent computer would be able to take the proper decision on its own, i.e. it should have the power of thinking.

6. Essay on the Some Common Terms Associated with Computers:


It means the raw facts that have been collected from various sources but not organised. Data cannot be used directly to make meaningful discussions, e.g. numbers, letters of the alphabets, words, special symbols etc.


The organised and processed data is known as information, i.e. the meaningful sequence of data.


The collections of raw data and the sequential set of instructions fed into the computer for processing is called input.


The achievement of the final result what we get from a computer as meaningful information is known as output.

Data processing:

The manipulation i.e. skilful management of raw data on the basis of the instruction given to get some meaningful information is called data processing.


It refers to the physical components of a computer system which are used for data processing i.e. keyboard, wires, floppy, chips, (i.e. it can be touched and felt).


It refers to the programmes or set of instructions to obtain a solution to a problem i.e. it can neither be touched nor be felt.

Again, software is of two types:

(i) System Software:

Fixed instructions which are fed in by the manufacturer and are needed for the computer to continue its operation i.e. it explains instructions.

(ii) Application Software:

They are fed in by the users to apply on raw data to be processed. Application software’s can be business-applications-related or scientific-application-related.


It is a set of instructions given in any computer language to carry out a specific task.

Central Processing Unit (CPU):

The Central Processing Unit (CPU) of a computer is the nerve centre of the computer. It performs all the arithmetical calculations, takes all the logical decisions and controls the activities of all the other units.

It consists of two main components:

(i) Control Unit (CU); and

(ii) Arithmetical Logical Unit (ALU).

Control Unit (Cu):

Computer controls each and every part of the computer system through the Control Unit.

It performs the following functions:

(i) It directs the flow of the input from the input device to the primary memory.

(ii) It accordingly directs the flow of the raw data to the ALU to be processed.

(iii) It interprets the instructions in the programme.

(iv) It then re-directs the processed data from the ALU to the memory.

(v) Finally, it directs the flow of the meaningful information from the memory to the output device.

Arithmetical Logical Unit (ALU):

The functions of the arithmetic part of the ALU is used to work out arith­metical problems like addition, subtraction, multiplication, division and involves making comparisons. ALU comprises of registers. A register is a temporary storage device which holds the data and instructions as long as it is being manipulated.

Calculators, Computers and MenCalculators, Computers and Men

7. Essay on the Types of Computers:

Computers may be classified into:

(i) General purpose computers;

(ii) Special purpose computers.

(i) General purpose computers:

They can perform a variety of functions i.e. they are not for a specific function.

(ii) Special purpose computers:

They can perform specific tasks.

Another classification of computers may be made as under:

(1) Analog Computer;

(2) Digital Computer; and

(3) Electronic Data Processing.

Now, Digital computers are again of four types:

(a) Micro-computer;

(b) Mini-computer;

(c) Mainframe-computer; and

(d) Super-computers.

Again, Micro computers are of three following types:

(a) Personal Computer (or PC)

(b) Personal computer with Extended Technology

(c) Personal computer with Advanced Technology.

Now, the whole classification stands as under:

Types of Computers

Analog Computer:

This type of computer works under the principles of analog or analogous data which means equivalent. In other words, the signal or wave which is continuously varying in nature between any set of boundary values is known as analog signal.

The computer which can process various types of analog signal is termed as analog computer. This type of computer is primarily required by scientists and engineers for specific purposes. It gives a limited accuracy in computation to about 0.012.

Digital Computer:

Digital computer, on the other hand, performs arithmetical and logical operations on discrete data. It works on the principles of binary system. In this computer, only two states are taken into consideration, e.g. true/false, high/low, present/absent etc.

It is interesting enough to see that if it is true/high/present, it is taken as 1 and in the case of false/low/absent, it is taken as 0. For example, if a lamp glows, it will be taken as 1 and if it does not glow, it will be taken as 0. Thus, a binary signal possesses only two states 1 and 0 i.e. it must not possess values other than 1 and 0.

Now, we are going to highlight in short the classification of Digital computers. It has already been shown earlier that digital computers are of four types:

(a) Micro-computer;

(b) Mini-computer;

(c) Mainframe-computer, and

(d) Super-computer.

(a) Micro-computer:

Practically, the invention of microprocessor brings out the development of Micro computers or Personal computers (PC). When it was invented, it used 8-bit microprocessor (i.e., information was taken in units of 8 bits). Gradually, 16 bits, 32 bits microprocessors were developed. Now, more precise calculation and more complex instructions may be processed by a 16 bits or 32 bits word size computer. Its storage capacity were 64 kilobytes at first, now it has gone up.

Areas of Application:

(i) At homes, in offices, in business houses and in commercial establishments;

(ii) Schools, colleges, universities and research institutions.

(b) Mini-computer:

Its features are:

(i) Its hardware units are smaller in size;

(ii) It has smaller backing storage facilities (i.e. use of floppies);

(iii) It has smaller range of input/output interfaces;

(iv) It possesses lesser memory capacity;

(v) It has slower operational speed;

(vi) It can support 15—20 terminals;

(vii) It does not require dust and temperature control;

(viii) It can accept all high level language;

(ix) Its speed is 500 KIPS (kilo instruction per second);

(x) Its storage capacity is 256 KB to 1 MB.

Areas of Application:

(i) Engineering and scientific application;

(ii) Accounting;

(iii) Financial analysis of companies;

(iv) Computer graphics.

(c) Mainframe-computer:

Its features are:

(i) It supports a wide range of high speed input-output terminals with storage capacity, capable of storing large volume of information;

(ii) It has a large and fast CPU;

(iii) It also requires strict air-conditioning, dust and temperature control;

(iv) It can support 100-500 terminals;

(v) High speed—1 to 10 chips;

(vi) Storage capacity—2 MB to 016 MB.

(vii) It can accept any high level language.

Areas of Application:

Complex Engineering designs; Scientific research, Reservation system etc.

(d) Super-computer:

These are the most powerful computers. They are now widely used to produce special effects and computer generated images in sci-fi movies. They are generally 64-bit machines together with a huge memory and can execute over 100 million instructions per second or MIPS. Its capability is measured in terms of Flops.

Its features are:

(i) It may use several processors working at the same time;

(ii) It has very high process speed;

(iii) Its operations are done parallel rather the sequentially;

(iv) Its speed is 100 MIPS;

(v) Its storage capacity is 5 MB to 64 MB.

Areas of Application:

(i) Weather/Meteorological forecasting;

(ii) Space Research; and

(iii) Bio-medicine, aeronautics, robotics, etc.

8. Computer Memory:

Memory is the basic unit of a computer where it can store data and all other instructions that are given to it. There are small rooms or space called cells in memory where data are stored in the form of 0s and Is. For accessing previously stored data, we are to supply the address of the cell where it has been stored.

Now the memory may be depicted as under:


Primary Memory and Secondary Memory:

While typing a programme, if power goes off the entire typing matter is lost. In order to avoid this difficulty the data are stored in the memory for which we can see the previously typed programme. The same is known as Primary Memory. The programme can be saved for future use in a floppy disk or in the hard disk before switching off the power and, in that case, the same is retrieved again which, in other words, is known as Secondary Memory.


ROM stands for Read-Only-Memory. It is a permanent memory. Here, we can read but cannot write anything. It is non-volatile. It stores the computer’s own operating instructions and it cannot be used for storing any other information.


It is non-volatile.


(i) It is not possible to change or alter the instructions or data on it.

(ii) Except for the odd peak at it, it is a prohibited area for the programmer.


PROM stands for Programmable Read Only Memory. Here, data can be stored by special means.


(i) It is non-volatile.

(ii) A programmer may place his own data on the chip.


(i) Once the PROM is programmed it cannot be reprogrammed.

(ii) The PROM needs a special processor for programming.

(iii) Each programme must be written, tested, rewritten and re-tested until it is entirely workable which consumers much time.


It stands for Erasable-Programmable-Read-Only-Memory. Here, existing stored programme can be erased and new programme can be stored by special means. There is a glass window on the upper side by which ultraviolet rays fall inside. As a result, the existing matter is destroyed/erased. In order to store a new programme in a EPROM chip, an EPROM programmer is required.


(i) It will be erased by ultraviolet light and new information can be written on it.

(ii) It is non-volatile.

(iii) Its programming capacity reduces the wastage of PROMs.


(i) It takes a long time to erase a programme,

(ii) Ultraviolet light is not easily available.


It stands for Electrically-Erasable-Programmable-Read-Only-Memory. If we do not need ultraviolet light to erase the programme, we need electricity for the same purpose, i.e. the existing matter can be erased with the use of electrical pulses.


RAM stands for Random-Access-Memory, with this we can erase as well as write. It is volatile. It means that anything inside it is lost once the computer is switched-off. From this we can read at random the existing stored data and can write any new set of data. When we load a programme from a floppy disk/hard disk into the memory of the computer or we feed the data into a computer through the keyboard after typing, the same is stored in the RAM temporarily. That is why it is also called temporary memory.


(i) The RAM is very fast in the sense that data can be retrieved from the memory with exceptional speed,

(ii) It is wholly electronic.


(i) It is volatile. Once the power is switched-off, all the information in it disappears.

(ii) The RAM is more costly in comparison with a core memory.

Static RAM:

A STATIC RAM receives an electrical pulse only when its contents need to be changed.

Dynamic RAM:

A Dynamic RAM needs a constant supply of electrical pulses for it as it is able to hold its information.

9. Application of Computers

At present computers have entered into our day-to-day activities and its application is increasing at a very fast speed.

However, we are going to highlight its areas of application to some extent:

(a) In Data processing jobs:

We know that computers are used for both data processing and computation purposes. Raw data are fed into the computer through input device. Computers process them to make some meaningful information. Comparative study among various matters can be made possible by the proper data processing technique.

(b) In Commercial and Financial Application:

Various commercial applications viz. advertisement, various investment opportunities etc. may be performed in an efficient manner. Moreover, financial applications through financial accounting become useful e.g. drafting comparative analysis of Income Statement and Balance Sheet of companies.

(c) In Engineering and Statistical Research:

It is needless to say that at present engineering and scientific research become impossible without the help of computers, particularly the mathematical calculations.

(d) In Publishing work:

Various publishing works, like, book, paper newspapers, etc. use computers at a very large scale and it is known as Desk Top Publishing (DTP) work.

(e) In Weather forecasting:

Forecasting weather can efficiently be done with the help of computers which require high level data processing and speed of calculation. Super-computers are best suited for this purpose.

(f) In Graphic applications:

Advertisements with animated pictures in. TV and cinema are the product of graphical applications by a computer.

Moreover, computers are equally applicable in the following fields:

(i) In office automation;

(ii) In processing control application;

(iii) In drawing, designing and manufacturing fields;

(iv) In teaching aids;

(v) In information and communication systems.

Computers in Accounting Functions:

We know that the accounting work is to some extent repetition in nature and it also involves routine work for some common purposes. This routine work which is also repetition to some extent can better be performed faster and accurately by a computer.

Large or medium scale organisations need the help of a computer for its multipurpose activities, since, with the help of computer, it becomes possible to know comparative analysis of cost/cost reduction by past data which are stored in a computer.

In addition to that, processing of pay-roll, preparation of bills and invoices and maintenance of stock records are effectively performed by a computer for which the same is used widely in the commercial world. Various accounting reports in the form of Cash Book, Ledger, Trial Balance, Profit and Loss Account and also the Balance Sheet are available after proper processing and clarifying the accounting jobs.

It is needless to mention here that accounting function, no doubt, can better be presented by a computer neatly in systematic and summarised form than manual performance. Thus, various accounting works are effectively and efficiently done at present by a computer.

Its areas of application are as:

(i) Preparation of various bills and invoices;

(ii) Preparation and Maintenance of stock and records;

(iii) Preparation and recording of business transactions;

(iv) Preparation of pay-role accounting;

(v) Preparation of individual records viz., Creditors’ and Debtors’ ledgers etc.;

(vi) Preparation of purchase and sales ledger along with other ledgers;

(vii) Preparation of various budgets.

(viii) Preparation of performance appraisal through final statement of account;

(ix) Preparation of comparative analysis of the statement of accounts etc.

Computers, in effect can do the same work much faster and much more accurately, than done by several hundred clerks in the Accounts Department, namely:

(i) Copying details (say, date, number, particulars, quantity, rates, amount etc.) from one record (usually original vouchers) to another, i.e. Book of prime entry and ledger.

(ii) Analysing and consolidating figures (through adding, subtracting, etc.) so as to provide meaningful information relating to each account;

(iii) Proving the accuracy of work (through the trial balance); and

(iv) Summarising information for preparation of final statements and for review.

Yorston and Smyth suggest that the following factors, among others, are to be considered before introducing mechanised accounting:

(1) Information

(2) Protection

(3) Convenience

(4) Timeliness

(5) Service

(6) Economy.

Computers in Business:

The applications of computer in the commercial and accounting world has already been highlighted above. Now, we want to discuss in general terms some facets of business operation and the information system used in business as well.

We know that business produces goods and services and they buy and supply the same in the .market. All their activities require a great deal of clerical work which can easily be satisfied by a computer.

Computers in Manufacturing:

If we assemble anything, we should have a basic understanding of the activities that are involved in manufacturing.

We must consider the following:

(i) Determine whether the products can be manufactured, i.e. whether skilled workers, proper machinery or sufficient materials are available or not?

(ii) Ascertain the steps involved while making the products, i.e. best use of machinery and workers or machine parts are available or not?

(iii) To do the task that are required to manufacture the product; and

(iv) Supply the finished product to a finished goods storage area.

Thus, it becomes clear from the above that all the said activities require a careful co-ordination along with other business activities viz. law firms/advertising agencies etc.

Computers in Buying and Selling:

It is interesting to note that business buying behaviours are quite similar to our own behaviour as a consumer.

For this, a business must perform the following:

(i) Assessment of requirements (i.e. minimum stock level, re-ordering stock level).

(ii) Fixation of purchase procedure, i.e. whether quick delivering is more important than low price or not?

(iii) Evaluation of goods supplied to the suppliers, i.e. whether higher quality of product ‘X’ is worth its higher price or not?

(iv) Make and receive the goods that are purchased;

(v) Examine and analyse the goods that are purchased;

(vi) Settle and pay the price for the goods.

We also know that buying and selling are the two important tasks that are performed by a business. The failure and success of business depend on these activities. Thus, accounts payable refers to goods that are purchased on credit from creditors and accounts receivable refers to goods that are sold to customers on credit.

For selling activities, a business has to:

(i) Create a demand in the market for the product;

(ii) Decide what kind of goods should be offered to the market;

(iii) Maintain a sufficient inventory level for the customers;

(iv) Receive the order from the customer and process the same;

(v) Deliver the goods as per order to the customers;

(vi) Prepare the bills and receive payments.

From discussions made so far, it becomes clear to us that buying, manufacturing and selling a product happen in every business. There must be a close link among the three activities. Because, if we buy goods but they are not manufactured or goods that are manufactured not sold, we face acute problems since huge amount will be blocked in inventory. So, inventory is a link among them.

In short, how much inventory level should be maintained depends upon the sales trend; the problem will be more difficult in case of a seasonal business. It is needless to mention here that if we maintain high level of inventory than our actual requirement, it will invite idle cash and, on the contrary, if we maintain the low level of inventory, some customers will stop dealing which, in other words, reduces the amount of sales.

All the said problems can easily be tackled by a computer. It can make a close link among buying, manufacturing and selling the products together with maintaining proper inventory level.

Some popular Financial Accounting packages:

At present, in our country, the following financial accounting packages are quite popular among the business houses and commercial undertakings:

1. Accord

2. Binary 2000

3. E.X. Next Generation

4. Peutronics Tally

5. Nacwin

6. WinCA

7. Wings or Windows

8. Visual Trio.

We are highlighting the above eight in short in a comparative analysis form as given:

Comparative Study of Eight Popular Financial Accounting Packages

Comparative Study of Eight Popular Financial Accounting Packages

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