Advantages of manual system?
Answers
Despite the convenience and market penetration of computer-based accounting systems, manual accounting still offers several advantages that make it a viable alternative.
Error Correction: double-entry accounting, attributed to Luca Pacioli, a 15th century Italian, provides a natural way to guard against data entry errors and number transpositions. Every transaction gets entered as a debit in one account, and a credit in another account. Trial balances compare all debits and all credits. If these don’t match, an error is made somewhere in the accounts.
Data System Errors and File Corruption: Computer systems store data in ways that aren’t commonly understood by many users. Opening the wrong file with old data or encountering a data file with digital errors can ruin the validity of your current data. Manual systems use a single file, the ledger, for each account. There’s no other version with similar data that may be confused.
Always Accessible: Power or internet outages won’t prevent you from working on accounts unless you’re thrown into complete darkness.