Computerized Accounting
importance
limitations,
Answers
Answer:
Importance of computerized accounting:-
- In case of a disasters, the system can be quickly restored on other computers. This level of precaution is taken by Clever Accounting. Cost-effective: Since using computerized accounting is more efficient than paper-based accounting, than naturally, work will be done faster and time will be saving..
The main limitations of CAS are being dependent upon the operating environment they work in. Some of them are listed as follows:
(i)Cost of training
To ensure effective and efficient use of computerised system of accounting, newer versions of hardware and software are to be introduced. These require special training and hence, cost is incurred to train the staff personnel.
(ii) Fear of unemployment
On account of the introduction of computerised accounting system, the employees feel insecure that they may lose employment and show less interest in computer related work.
(iii) Disruption of work
When computerised system is introduced, the existing process of accounting and other works are interrupted. This results in certain changes in the working environment.
(iv) System failure
The danger of a system crashing due to some failure in hardware can lead to subsequent interruption of work. This is more when no back-up is made.
(v) Time consuming
When there is system failure, an alternative arrangement needs to be made to avoid loss of work. This consumes some time to bring the regular processes back.
(vi) Unanticipated errors not known
Unlike human beings, computers do not have the capability to judge or detect unanticipated errors in the system.
(vii) Breaches of security
The danger of viruses and hacking into the system from outside creates a strong need for security of the system. Similarly, the person who has created the specific programme can easily defraud by tampering with the original records.
(viii) Health dangers
Extensive use of computers may lead to many health problems such as eye strain, muscular complaints, back ache, etc. resulting in reducing work efficiency as well as increased medical expenditure.