Accounting vs Computer Science: How do they Relate!

The relationship

A close relationship exists when we look at accounts and computer science, that on the surface, one can easily fail to notice the linkages. For starters, one should try to answer the question as to what is meant by the term computing, or what is to compute.

What is to compute?

To compute means counting. That explains the close linkage between the two fields. A further interrogation of what computer is shows that it means 'counter' as a term.

Since the advent of computers, it has become humanely possible to compute huge and complex mathematical issues in less time possible. Results can be archived , recorded and result determination undertaken at the same time.

It is understandably clear, that where a lot of time would be required to undertake complex mathematical problems and accuracies not at 100%, computer eliminates to a great extend this obstacle. We can then conclude that, the correlation between accounting and computer science is a call home.

Computerized accounts systems

The accounting procedures carried out by the aid of computers with specific accounting software is called computerized accounting.  Just like information and records can be maintained in a manual accounting system including the ledgers, Journals, Profit and Loss accounts, balance Sheet and so on, so is the same as maintained in a computerized accounting system. Perhaps the only variance is that in a computerized system, the records are electronically maintained with the support of the accounting software in use while the manual system gives you the option of the physical records.

Features of an accounting system

As one plans to apply the use of computerized accounting, here are the various features that should stand out-:

  • Should greatly help in the online recording and storing of accounting data.
  • It should be able to help in generation of your purchase and sale invoices.
  • Be able to assign codes to each transaction undertaken sequentially.
  • Can be able to generate analysis reports for various records and transactions.


This is the art of classifying and summarizing in a significant manner and in terms of money, transaction and events which are in parts at least of financial character and interpreting the results thereof. Bookkeeping is a part of the accounting process that is related to recording, classifying and summarizing transaction of a financial nature.

Classification of accounting

  • Cost accounting
  • Financial accounting
  • Management accounting


The main purpose of maintaining a set of accounting information Books is to enable the person concerned to get information about the financial condition and conduct of his business as and when he needs it. Accounting provides the information that can enable him see the individual effect of each transaction and the collective effects of the transactions made in a particular period.


  • Keeps the businessman informed about the financial position of his business.
  • Helps in calculating profit/loss over a period.
  • Avails information on movement of business assets
  • Helps in decision making about business e.g expansion, opening new branch, or closing down etc
  • Provides evidence of a transaction
  • Helps traders who buy and sell goods on credit.
  • Necessary for income tax purposes

Commercial terms

Debtor- A person who owes money to another person.

Creditor- A person to whom money is owed

Transaction-Any exchange of goods or service between two people for a consideration

Voucher- Any document used in a business to show a transaction has taken place e.g. an invoice, credit note, cash sale slip.

Invoice- A document issued by a seller to a buyer when goods are sold in credit.

Credit note- A document issued by a seller when a buyer returns some of the goods sold to him on credit or if there is an overcharge the invoice previously issued.

Source note- Document on which an accounting entry is based.

Goods- Things a businessperson trade

Purchases- The word in business and accounting mean only purchases of goods for the purpose of resale.

Sales- It is whereby goods are brought for which business is trading.

User of accounts

Financial statements (accounts) are prepared by profit making companies as well by non-profit organizations e.g. social clubs, hospitals, schools etc. used for different purposes by

  • Owners and management
  • Prospective investment
  • Creditors
  • Bankers
  • Government agencies

Assets and liabilities

  • ASSETS- Anything of value owned by a business. They may be classified as follows:
    • FIXED ASSETS- Assets retained for use in the business for a long period e.g. premises, buildings etc.
    • CURRENT ASSETS- Are short term in form of cash or convertible to cash e.g. stock
  • ASSETS – This are neither fixed nor current assets in the balance sheet.

They are classified as follows.


They are made by a business enterprise in form of purchase of shares or debt of limited company.


Assets which have no material existence e.g. goodwill, copyrights etc. N/B Goodwill is the excess of current and fixed asset that balances-sheet.


They are financial obligations in a business. They are classified as follows.

Long-term liabilities
  • They are payable at a date more than one year e.g. capital.

Current liabilities

They are payable by the business within one year of the balance e.g. creditors, bank- overdraft etc.

Bookkeeping equation

Double entry accounting is the accounting equation that shows the relationship between assets and liabilities and the equity. A balance sheet equation indicates if you use the business funds for your asset financing or through debt.

Businesses that use single entry accounting do not necessarily use the balance sheet equation because the accounting equation shows a balance between the two sides of the general ledger. Standard Procedures in a Single-entry accounting do not require a balance on the two sides of the general ledger.

Best accounting software for small business

A quick glance at Investopedia's article on best small business computerized systems can help you in making an informed decision. 

This basic standard operating processes in accounting field, the use of computerized accounts software greatly automates these practices easily because of the segmentation and easy to use application. Software like  WP ERP gives you all these benefits with many other automations good for your business.

You can contribute your own experiences, critique and or add your thoughts to this article and help keep the conversation going.  

PreviousProgramming Languages: Why not human language?
NextLedger accounts: A computerized accounts perspective

Leave a Reply

Scroll to Top
Share via
Copy link