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Advantages and Disadvantages of Using Computerized Accounting By Miss Saman Azeemi

Wednesday, 29 January 2014
As application applications are published to aid, make simpler and improve almost every human process, why should economic accounting be an exception? In fact, some of the earliest application applications, such as Microsoft Excel were published with the requirements of the company user in mind. One thing that computer systems are exceedingly good at is number bashing and since accounting is all about dealing with numbers, it seems sensible to change over to computerized accounting. Still,many who still rely on guide accounting, due to overall uncertainty about computerized accounting.
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What is Computerized Accounting?

This type of accounting is all about using application applications to carry out every process that is part of the annually accounting pattern. This involves the use of payroll application, keeping of records due and a / r, besides keeping a record of receipts using application applications. There are many applications that can assist in tax computations too. Some companies may limit themselves to just the use of worksheet application and some may completely manage their entire accounting pattern by using specialized application. Let us take a look at what are the benefits and drawbacks of changing over to computerized accounting.

Advantages and Disadvantages

If you are considering changing over to computerized accounting, it would be helpful to consider the benefits and drawbacks that this decision brings in.

Advantages


Speed & Accuracy
The prime benefit is rate and precision. Calculations can be zipped through substantially faster, compared to guide accounting. Recurring computations are especially simpler. All you have to do is key in the information, apply required computation formula and let the application manage the rest. Excel spreadsheets with thousands of records can be processed quickly, using application. Unless wrongly designed, a PC never errs, which provides you with a high degree of precision in accounting. As a consequence, you save a significant period of your energy and effort, which can be spent in economic research.

Backing Up Facility & Simple Mistake Correction
Backing up all your information is simpler. You can maintain a printed off all your annually accounting in the form of prints, along with a similar application backup. Another advantage is not hard error modification, which can be difficult in guide accounting.
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Disadvantages


Time Dedicated to Software Utilization Training
What could be considered a disadvantage is the significant period of cash spent in the coaching of personnel? For people used to guide accounting, it needs a chance to change over to application usage, which can delay records processing. For non-computer smart employees, computerized accounting can be tough. However, you need to invest cash in coaching just once.

Security Risks Involved
If precautions are not taken, such as installation of anti-virus application and obtaining of office network, there is a protection risk of losing information due to coughing attacks and neighbor's via Internet. Ergo, it's essential that adequate protection safety measures are put in place when using accounting application.

Instead of entirely changing over to computer systems, a company may opt for a similar execution with guide accounting. That way, you can have the key benefits of both guide and computerized ways. The rate and precision that pc offers can help a company's records department focus on research and economic planning, instead of investing quantity of time in the hard physical work of individual computations for every entry. To determine, it's strongly recommended that modern companies opt for computerized accounting as the benefits far over-shadow the drawbacks.
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