Advantages and Disadvantages of Manual Accounting Systems




You must do the accounting for your small business. That does not mean you have to buy expensive accounting programs and a computer with a lot of memory. You can actually bring a paper book if you wish. Manual accounting in a paper book has advantages over computerized accounting, but it also has drawbacks.

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Learning curve
If you are learning how to do business accounting for the first time, manual accounting can teach you the ins and outs of balancing your debits and credits and keep you up to speed with things such as depreciation costs and overheads. This hands-on experience helps you understand accounting operations if you later computerize your accounting.

Weather
One of the disadvantages of manual accounting is the amount of time you have to put in this. Because you do not have a computer that categorizes and adds numbers, you must do it yourself. More hours are needed to do manual accounting than those needed with computerized accounting.

Routine work
Manual accounting can seem much more tedious than computerized accounting. You have to add columns accurately, double check your work and write numbers physically. These routine tasks are handled efficiently by computerized systems.

cost
One of the main advantages of manual accounting is cost savings. Accounting software can be expensive. If you are starting a business, you can save money by doing bookkeeping in a paper book. If you do the work yourself, you can even save the expense of having an accountant.

Freedom of machines
With manual accounting, you are free of computers. You can do this kind of accounting anywhere, even at home or during a bus or train trip. In reality, this can free up part of your workday. Also, you do not have to worry about technical computer problems and software crashes.

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