ICT in Financial Transactions
Introduction To transact means to conduct or carry out business. Financial transaction refers to an agreement or communication between a buyer and a seller on how to carry out business. They agree on the terms of exchanging goods or services for payment. ICT as a tool in financial transactions enables the smooth and efficient running of the agreements and payments made between the buyer and the seller
2.1 The Role of Computers in Financial Transactions Computers are important tools in all financial transactions. Computers are used to automate business operations, for record keeping, and for the stock exchange. 2.1.1 Automated OperationsAutomation is the process of using computers and information technology to produce products and offer services with minimal human involvement. Some examples of automated operations include automated accounting, automated mailing, and Electronic Data Interchange (EDI). 1. Automated Accounting • Automated accounting refers to the process of maintaining up-to-date accounting records using accounting software. • Accounting software allows easy cross-posting of accounting records. • Most of the readily available automated accounting systems can be customised to suit the needs of the company that purchases the software. This makes it possible to create customised reports.