Electronics in Relation to Accounting Procedures and Records
BY GORDON C. STUBBS PARTNER, CINCINNATI OFFICE
Presented at the Southeastern Electric Exchange Accounting Conference, Pensacola — October, 1955
A few years ago, a discussion on this subject would have been started by a review of the elementary concepts of electronic data processing.
I believe it is safe to assume that such an elementary approach
is no longer necessary in groups such as this. I base this assumption
upon the work done in the field of electronic data processing by various utilities and utility organizations and upon the fact that some of the larger utility companies have been, in a sense, pioneers in this field. Evidence of this is the recent announcement made by Con Edison of New York that they have ordered three of the largest types of electronic
data-processing machines - a Univac, an IBM Type 705, and a Univac II. Commonwealth Edison of Chicago are installing, or have installed, an IBM Type 702 and many other utilities are well advanced in their electronic programs. Of course, electric utilities have a good basic reason to advance the use of such machines - as you know, electronic
data-processing equipment has a healthy appetite for electricity.
The subject assigned to me is "Electronics In Relation to Accounting
Procedures and Records". I intend to limit my remarks to electronic data-processing systems. This means such equipment as Remington Rand's Univac and Univac File-Computer, International Business Machine's Types 650, 702, and 705, RCA's Bizmac, and a half dozen or so other systems, most of which are of a small capacity. All of the systems to which I refer can be characterized by the fact that each has the ability to store internally its own set of operating instructions,
called a program.
The speed of this electronic equipment, as compared with other electro-mechanical data-processing equipment, is phenomenal. It is hard to talk about it without mentioning some statistics. For example, in a recent proposal, it was determined that all of the calculations required
in a 50,000 man payroll could be accomplished in 2-1/2 hours