Bookkeeping › Computerized Bookkeeping

What is computerized bookkeeping?

Beginner

Answer

Computerized bookkeeping uses accounting software (e.g., QuickBooks, Xero, Sage) to record and process transactions instead of manual books. The software applies double entry automatically, maintains ledgers and control accounts, and generates the trial balance, reports, and financial statements from the data entered.
Real-world example A small business records invoices and payments in Xero, which automatically updates the ledgers and produces reports.

Common follow-ups: Name common accounting software. | What does the software automate?