Question

disadvantages of computerised accounting system

Answer 1

Advantages And Disadvantages Of Computerized Accounting ... Advantages And Disadvantages Of Computerized Accounting Software. Accounting is a very important function for every small and large business. The accounting programs fulfill functions such as paying wages, reports, invoicing, managing payments, profit & loss accounts and balance sheets.

Answer 2

The Human Element

Although computerized accounting systems use technology to calculate sums and store information, this data must be entered by humans, and these humans must be trained. Training staff on software programs can be expensive, and knowledge needs to be updated regularly because computerized accounting systems change, sometimes every year. Mistakes happen at many stages in the learning curve, and a computerized system with formulas that build on one another is likely to compound seemingly simple errors, making the source of a problem even more difficult to find.

Technology Costs

Virtually every aspect of a computerized accounting system is costly. Computers are exponentially more expensive than paper ledgers, and the software required for your accounting data adds a further expense which often has to be renewed or updated yearly. You may also have to shell out funds for repairs, or hire professionals for training, custom software or to untangle especially complex mishaps.

Security and Permanence

Computerized accounting systems are vulnerable to cyber security issues. Cloud-based systems store your company’s information remotely, where it can be hacked. Your system may be infected with a virus that destroys or corrupts information. Computers also crash periodically, so unless you’re especially diligent about backing up files you may lose many hours’ worth of work. So, while computerized accounting systems organize information and make calculations quickly and efficiently, they may create a false sense of security. The bottom line is they can never fully stand in for direct knowledge of systems or first-hand familiarity with the details of your operation.

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