Advantages and Disadvantages of Computer Accounting




Accounting is a crucial function for all businesses; Large or small. There are two types of accounting systems: manual and automated. Where accounting functions were done by hand by trained professionals, today there is a wide variety of accounting software available to help maintain the necessary accounting records. Choosing to use an accountant to perform accounting manually or use a computer system, will depend on your specific needs.
Advantages that can save money
The computer accounting system offers several advantages for small businesses. Systems for small and medium-sized businesses can be purchased at low cost. These programs allow managers to see the financial situation of the company in "real time" and make adjustments to the business strategy as needed. Computerized systems can also provide instantaneous reports on inventory valuation, profit and loss, customer accounts, returns and sales analysis once again, allowing for quick adjustments to your business strategy. In addition, transactions need to be entered only once, and, with some training, anyone in the company can make the income.

Advantages that can save time
Using a computerized accounting system can save you time. Accounting software allows data entry faster than manual accounting and documents such as invoices, purchase orders and payroll to be collated and printed quickly and accurately. Because of their effectiveness and ease of use, computerized accounting systems also enable improved inventory control and collection, save time and better cash flow. Because computerized systems automatically update some records, your account records will always be up-to-date, saving time in updating.

Disadvantages
Using a computerized accounting system comes with its own set of problems, such as the need to protect yourself against data loss through blackouts or viruses and the danger of pirates stealing information. Computer fraud is also a concern, and you need to investigate a system of controls for who can access information, particularly customer information. If there is a security breach and data is stolen, management may be responsible for the loss of information. You should also make sure that the data has been entered correctly in the system, as a mistake in the data entry can throw incorrect information.

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