Computer Hardware -Hardware refers to the physical components of a computer.
Computer
Hardware is any part of the computer that we can touch these parts.
Different Types of Computer Hardware
Input Devices - Input Devices are those devices through which a user enters data and
information into the Computer or simply, User interacts with the Computer
Output Devices- Output Devices are devices that are used to show the result of the task
performed by the user.
Storage Devices- Storage Devices are Different Types of Computer Software
System Software System Software is a component of Computer Software that directly operates
with Computer Hardware which has the work to control the Computer's Internal Functioning
Application Software: Application Software is the software that works the basic operations of the
computer. It performs a specific task for users.devices that are used for storing data and they
are also known as Secondary Storage Data
Internal Component- Internal Components consist of Important hardware devices present in the
System.
Essential Hardware Components
1. Computers (Desktops/Laptops)
2. Servers
3. External Storage (Hard Drives, USB, Cloud Storage)
4. Printers & Scanners
5. Point of Sale (POS) Systems
6. Barcode Scanners
7. Network Devices (Routers, Modems, Switches)Security Devices (CCTV Biometric Scanners,
Firewalls)
Computer Software - Software is a collection of instructions, procedures, and documentation
that performs different tasks on a computer system. We can say also Computer Software Is a
programming code executed on a computer processor The code can be machine-level code or
code written for an operating system.
Different Types of Computer Software
System Software - System Software is a component of Computer Software that directly
operates with Computer Hardware which has the work to control the Computer's Internal
Functioning
Application Software - Application Software is the software that works the basic operations of
the computer. It performs a specific task for users.
Popular Accounting Software
QuickBooks - Best for small to medium-sized businesses.
Sage 50 -Ideal for growing businesses needing advanced features.
Xero Cloud - based accounting with real time collaboration.
FreshBooks - Good for freelancers and small business owners.
SAP ERP Accounting - For large enterprises needing a full accounting and financial
management system.
Tally ERP 9 - Popular in small and medium businesses, especially in India.
Varieties of Accounting Software in Use
There are several varieties of accounting software tailored to meet the needs of different users,
businesses, and Industries. Here's a breakdown of the main types:
Basic Accounting Software
• Target Users. Small businesses or individuals.
• Features: Basic bookkeeping, invoicing, expense tracking, and financial reporting.
Examples: QuickBooks Simple Start, FreshBooks
Cloud-Based Accounting Software
Target Users: Businesses of all sizes looking for accessibility and collaboration.
Features: Real-time access from any device, automatic updates, and collaboration tools.
Examples: Xero, QuickBooks Online, Wave.
Enterprise Resource Planning (ERP) Systems
• Target Users: Medium to large enterprises needing integrated solutions.
Features: Combines accounting with other business functions like inventory, humanresources,
and supply chain management.
• Examples. SAP, Oracie NetSuite, Microsoft Dynamics.
Payroll Software
• Target Users: Businesses needing payroll processing.
Features: Calculates wages, taxes, and manages employee benefits.
Examples: Gusto, ADP, Paychex.
Mobile Accounting Software
• Target Users: On-the-go entrepreneurs and freelancers.
Features: Mobile-friendly interfaces for invoicing, expense tracking, and financiaireporting.
• Examples: QuickBooks Mobile, Zoho Books
What is DBMS?
Database management systems (DBMS) A database management system (DBMS) is a
collection of programs that enables you to store, modify, and extract information from a
database.
The following are examples of database applications:
1. Computerized library systems
2. Automated teller machines
3. Flight reservation systems
4. Computerized parts inventory systems
Advantage and Disadvantage of DBMS
Advantages
• Control redundancy
• Data Integrating
• Relating Data Items
• Database Performance
• Data Security
• Management Control
Disadvantages
-It requires considerable outlay of resources.Main frame hardware is expensive and although
today there are a number of PC based database, multiple copies of the software, combined with
training, can become an expensive proposition.
Data Management Activities
1. Data Integrity
2. Integrity and Verification
3. Storage
4. Maintenance
5. Security
6. Organization
7. Retrieval
Components of DBMS
Data Dictionary System (DDS) - A data dictionary is a file or a set of files that contains a
database's metadata.
Data Definition Language (DDL) - The Data Definition Language (DDL) is used to create and
destroy databases and database objects.
Data Manipulation Language (DML) -The Data Manipulation Language (DML) is used to
retrieve, insert and modify database information.
Structured Query Language (SQL) - is a standard computer language for relational database
management and data manipulation.
Database Models
1. Hierarchical Model - The hierarchical data model organizes data in a tree structure. There is a
hierarchy of parent and child data segments.
2. Network Model - The popularity of the network data model coincided with the popularity of the
hierarchical data model. Some data were more naturally modelled with more than one parent
per child.
3. Relational Model - A database based on the relational model developed by E.F. Codd. A
relational database allows the definition of data structures, storage and retrieval operations and
integrity constraints.
ERD Diagram
-An entity-relationship (ER) diagram is a graphical representation of entities and their
relationships to each other. It is used in computing in regard to the organization of data within
databases or information systems.
Three types of relationship among entities
1. One-to-one
2. One-to-Many
3. Many-to-Many
Symbols of E-R Model
Rectangle- Representing Entity set
Oval- Representing attributes
Diamond- Relationship
Line- Links attributes and entity set
PRINCIPLE OF DATABASE MANAGEMENT
•Database technology must be aligned with business strategy.
• It Should be easy to access and process data residing in different databases
• Data resources are critical to an organisation and must be fully utilized and protected.
• Control and security are Important issues in databases, particularly distributed databases.
Database tools must be carefully selected.
For this following points should be taken into consideration:
-Understand the resource required
-Understand database utilities
Role of Information Technology in Financial Reporting
Information Technology (IT) plays a pivotal role in transforming traditional accounting practices
into dynamic, streamlined operations.
-Understand SQL optimization
-Understand connectivity issues
Here are several reasons why IT is important and beneficial for accounting firms:
1. ENHANCED DATA MANAGEMENT AND SECURITY
2. DATA BACKUP AND RECOVERY
3. IMPROVED EFFICIENCY AND PRODUCTIVITY
4. WORKFLOW AUTOMATION
5. ACCURATE AND TIMELY REPORTING
6. REAL-TIME ANALYTICS
7. REGULATORY COMPLIANCE
8. AUDIT TRAILS
9. CLIENT RELATIONSHIP MANAGEMENT
10. PERSONALIZED CLIENT SERVICES
11. SCALABILITY AND GROWTH
12. COST EFFICIENCY
13. COMPETITIVE ADVANTAGE
14. INNOVATION AND ADAPTATION
