Importance of data in accountingThe term "data" refers to
primary details or numerical facts relating to an event or transaction. Data is
stored and maintained on a computer or network. Computer Software like
HiTech Financial Accounting process this electronic data. Data is also
maintained as hardcopy or paper print. Since accounting limits itself only
to those transactions and events which are financial in character, therefore,
accounting data will consist of facts, financial in nature, relating to
transactions and events of a business entity for the accounting period.
Moreover, accounting data must be supported by documentary evidence. Thus,
documents known as vouchers, support the data. Usually data is disorganized and
disjointed in its raw form. It is not capable of being understood. So,
accounting processes raw data into finished form of "information" to make it
useful and meaningful, capable of being used in decision taking process by the
various users of accounting information.
Thus accounting data processed by
the accounting cycle produces accounting information. Data is collected,
recorded, classified, grouped, valued, tabulated, arranged, summarized in order
to present the same in the form of information for its use by the users to
enable them to take decisions.
Accounting data Consists of
financial transactions and events relating to an entity for the accounting
period supported by documentary evidence (vouchers). For example receipts and
payments are documented by payee's receipt purchases by invoice, sales by
outwards invoice, returns inwards by credit note; returns outwards by debit
note; expenses by bills or payment rolls etc.
Thus the first and the most
important function of accounting is to collect the data supported by the
vouchers to ensure the authenticity of the same. Accounting processes consist of
recording in the books of original entry (journal or sub- journals); classifying
(posting into ledger) grouping (putting transactions of similar nature at one
place in one account) valuing (finding the value at year end by balancing or
valuing) tabulating (preparing list of balances and checking arithmetical
accuracy) and preparing financial statements (Trading and Profit and loss
account; Balance Sheet) in report form to communicate the information.
Now-a-days computer accounting software can manage this task very efficient in a
matter of short time. Accounting information is presented mostly in the
form of financial statements like Income statement (Trading and Profit &
Loss account) Position statement (Balance sheet). Now-a-days statement of
changes in financial position; value added statement; report on Human resources
accounting; Social performance report etc. form part of accounting
information
Difference between Data and InformationData
1. Refers to details, facts about any event. 2. Is, generally, disorganized and
disjointed in the form.
3. Is in raw-form and is the input of accounting. 4. Cannot be understood or made use of by the users. 5. It does not depend upon information. Information
1. Refers to only those events which are concerned with entity. 2. Is properly arranged, classified and organized. 3. Is in the finished form and is the output of accounting. 4. Is understood and used by the users of accounting information for taking their decisions. 5. Information is based upon and derived from data. |
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Note for International VAT USers and GST Users in India
Many business use services of Tax Consultants and Chartered Accountants for filing the Tax Return and the tax return of the software is not used. To assist such activity you can export all reports from the software to MS Excel or MS Word and submit it to your tax adviser for financial figures for the business . The software will perform all Inventory Control, Vouchers, Nominal Ledger Accounts along with Working/Trading and Profit & Loss account that will give you all figures ready for export for filing Tax Return. As soon as you are sure about the changes you want in the visual interface and printing regarding your GST requirements we will modify the software software as per your GST requirements. To get any of the off-the-shelf software modified for visual interface and printing please Contact Us Now. We will carry out all required customization for GST as per your requirements in the existing software in professional and timely manner . For any required customization as per GST in any of the off-the-shelf software, please contact us now. We will carry out required customization for GST as per your requirements in the existing software at nominal additional charges. Give us details of required customization for a man-hour or work estimate. For official reference to GST refer to following links:GST (Goods and Service Tax) Circular by Central Board of Excise and Customs (CBEC), Department of Revenue, Ministry of Finance, Government of India. Finance Act 2016 of Government of India HSN codes for Goods and Service Tax (GST) in India Central Board of Excise and Customs - HSN Codes Circular by CBEC, Government of India - About HSN Codes.
Central Goods and Services Tax (CGST) Rules, 2017 Draft government Approved Format Under Goods and Services Tax - Invoice Rules What is GST Compliant Business? What are the specific mandatory fields in an GST compliant invoice? Why the invoice an important financial instrument? What are Registered and Un-Registered Dealers? There is a lot for your business to catch up on those links along with online tax filing and registration for trading. Give us the details of required work you want in the off-the-shelf VAT accounting system and we shall make it GST compliant invoicing and accounting for your business at nominal additional charges. Cheers. Happy Accounting. If you want to know the details of for making VAT/CST system compliant to GST system: Standard rate of $15 per man hour shall be applicable for making any of off-the-shelf VAT based accounting software systems into CGST/SGST Compliant Accounting. Give the details of customization required in any of our off-the-shelf VAT accounting systems made for various business to get a quote of additional charges. See demo of software on website. See official Indian Government CGST/SGST Specification on the panel above here. Click for more information on Value Added Tax (VAT). Free Download of Full Featured Software - Try Full Featured Software Before Order - Time Limited 30 days Full Featured Version of these software are available for download from our website www.freeaccounting.in. HiTech Billing, Accounting Software Off-the-Shelf versions are available for Business, Traders, Industry, Hospital, Hotel, Petrol Pump, Medical Store & Distributor, Automobile or Motorcycle Dealers, Newspaper or Magazine Publishers, VAT Accounting & Billing and Commodity Brokers. | ||||||
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