Question

Explain briefly any 4 advantages of computerized accounting system over the manual accounting system​

Answer 1

Answer:

The following are the various advantages of the Computerised Accounting Systems over the Manual Accounting Systems.

1. Speed- The speed of a computer is very high and takes very less time in performing various difficult operations. The accounting data is processed comparatively faster through the Computerised Accounting Systems than it can be done through the manual efforts.

2. Accuracy- In Computerised Accounting Systems, the possibility of errors is minimised or reduced as the primary accounting data is entered only once for preparing various accounting reports and for subsequent usage and processes.

On the other hand, in Manual Accounting Systems, posting of same data is required a numerous times to prepare different types of accounting reports. This increases the possibility of accounting errors.

3. Reliability- As the Computerised Accounting Systems is well-equipped in performing repetitive operations, so it is comparatively more reliable to perform the operations than the manual system. Also, the Computerised Accounting Systems overcome the limitation of Manual Accounting Systems such as tiredness, boredom or fatigue, etc., thereby enhances the degree of reliability.

4. Up-to-Date Information. - In the Computerised Accounting Systems, whenever the new accounting data is entered and stored, the existing accounting records automatically gets updated. For example, when a transaction related to purchase of machinery is entered in the Computerised Accounting Systems, then automatically the cash balance and machinery balance on the Assets side of the Balance Sheet gets updated immediately. This ensures that latest information is reflected in the accounting reports at any particular period of time.

On the other hand, the accounting records maintained under the Manual Accounting Systems fail to reflect the latest status. This is because it depends on the human mental capability and patience to update the records each time a transaction happens.

Explanation: