Pros and Cons of Computerized Accounting

Pros and Cons of Computerized Accounting

There are many benefits of using a computerised accounting which I am

going to list below and talk about in a little more detail.

Ø Timesaving

Ø Increased speed and accuracy

Ø Less staff required

Ø Less space need

Timesaving

It is fair to say that a computerised accounting system is much

quicker than a manual accounting system as all the user has to do is

enter the data into the computer and the computer will make the

calculations and produce and print out any reports, invoices or credit

notes at the touch of a button.

Increased Speed and Accuracy

The main benefit of the computerised accounting system is to carry out

the processing stage quicker, more consistently and accurately than

the manual accounting system. These are a few of the main benefits of

a computerised system as it is able to produce reports immediately

i.e. customer statements or more enhanced reports such as a cash flow

analysis or VAT returns. Another benefit of the computerised system

is its error detection capabilities i.e. if wrong values are entered

the computer will detect this.

Less Staff Required

Although some feel this may be a disadvantage I feel that this will

help a small business financially as they therefore have less wages to

pay and need less room to accommodate for the staff. It is fair to say

that a computerised accounting system can do the job of several

accountants in the same time and cost much less money

Less Space Required

Again this is a another benefit of a computerised accounting system as

the less space that an accounting firm needs the cheaper it is go...

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viruses.

Whenever a computer is used to handle an organization’s accounts, it

can be used to gain access to a business funds. In most computerized

bookkeeping systems, it is the computer which makes the credit

transfer; so by establishing false accounts, or diverting some of the

contents of the real ones, money can reach hackers.

Computerised accounting systems tend to be very expensive to set up

especially for small businesses who don’t have the financial backing

however for the larger organisations a computerised accounting system

will eventually pay for itself after several years as the requires

less staff and space.

In conclusion I feel that the benefits of the computerised accounting

systems outweigh the disadvantages of the system and before soon

computers will be in almost every business.