What is the role of computerised accounting?Accounting is very significant partof the world of business and plays a very vital role as it has the power toensure businesses grow as well as keeping track of their financial records.Many years ago when Accounting concepts such as the double entry system wasintroduced it was all manually done until a technological breakthrough whereAccounting had grown and double entry book keeping and other financial reportswere now computerised through software’s such as Sage 50, QuickBoooks and manymore. In this report I will be discussing whether the role of computerisedaccounting is more efficient than manually recorded book keeping.Advantages of the use ofcomputerised accounting As all of the calculations arehandled on software’s and applications, computerised accounting abolishes manyof the mundane and time-consuming processes associated with manual accounting.An example of that would be, once an invoice has been issued the accountingsystem will automatically process it and update the accounts creating a faster,less time-consuming way of accounting. In addition to this advantage wouldbe its accuracy. These accounting systems have been made to be more accurate tothe smallest detail. When the data in entered into the accounting system, allof the calculations including additions and subtractions are and all doneautomatically by the software making it more time efficient and more accurateas computers don’t take a lot of time to calculate and doesn’t make humanerrors.
Furthermore using accounting software’s makes it easier to meet IASstandards and the Accrual concepts. Also this makes the financial accounts andfinancial statements made highly reliable which meets the accounting concept ofreliability. Another advantage would be it is easy to access. For example ifyou were not in your office you may be able to access accounts and financialstatements at home securely. This is more often when you have an onlineaccounting system.http://www.
cleveraccounting.com/9-advantages-computerized-accounting/ Computers help in the paying ofseveral bills for a businesses. By using accounting software such as sage 50for example, it becomes easy to pay bills and also you are able to record anexpense that is linked to the same payment easier. (Bajdor and Grabara, 2014).Also, using computers makes it possible to pay bills in bunches and to printstatements and therefore this speeds up the accounting side of a business beingrun. In addition, computers make sure that there is no need to write checksmanually.
Data is inserted to the system by the workers doing the accounts andalso this means it is easier to retrieve when needed. (Let’s Log In 10 (RevisedEdition)).Disadvantages of computerisedaccounting It is frequently we speak about howcomputerised accounting is brilliant for businesses. But it gets us to thinkhow people have done without it. The use of accounting applications is verypopular that only a few of us have well thought out the disadvantages of usingcomputerised accounting to complete accounting tasks, nevertheless thesedisadvantages still do exist.The accounting software’s andapplications needs you to take time to understand how to use it. You could be aqualified accountant, you’re still required to know what every button andcommand menu is used for to use the application effectively. This process couldbe resulting is costly errors.
Occasionally paid training is needed to learnand understand how to complete certain tasks. If the accountant isn’t a tech genius,the process may will be more challenging. Another disadvantage is that it maybe costly to buy and maintain. And when new system updates, a lot of time willneed to be invested into training. If a computer was to breakdown, get hackedor stolen then data will be lost. If precautions were not taken such as downloadinganti-virus such as Avast Endpoint Protection Advanced, there will be a securityrisk from hackers and spying via the internet. Hence it is necessary to have goodsecurity defences in place when using the accounting software’s, adding to thecosts.https://www.
buzzle.com/articles/advantages-and-disadvantages-of-using-computerized-accounting.html Conclusion As a current accounting studenthaving experienced both manual and computerised accounting many people andmyself can conclude that computerised accounting is definitely the way forwardand that is not just an opinion as we can see it has revolutionised theaccounting world with its attention to detail and accuracy. For accountants tobenefit and make full use of the accounting software’s they would have tounderstand it and that is why traditional accounting is still amongst us todayas it is a learning curve. The questions remains has computerised accountinghindered bookkeeping? I do not think so because it has concurred many flaws andissues previously seen or experienced in traditional accounting.