What is the role of computerised accounting?

Accounting is very significant part
of the world of business and plays a very vital role as it has the power to
ensure businesses grow as well as keeping track of their financial records.
Many years ago when Accounting concepts such as the double entry system was
introduced it was all manually done until a technological breakthrough where
Accounting had grown and double entry book keeping and other financial reports
were now computerised through software’s such as Sage 50, QuickBoooks and many
more. In this report I will be discussing whether the role of computerised
accounting is more efficient than manually recorded book keeping.

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Advantages of the use of
computerised accounting

As all of the calculations are
handled on software’s and applications, computerised accounting abolishes many
of the mundane and time-consuming processes associated with manual accounting.
An example of that would be, once an invoice has been issued the accounting
system will automatically process it and update the accounts creating a faster,
less time-consuming way of accounting.

In addition to this advantage would
be its accuracy. These accounting systems have been made to be more accurate to
the smallest detail. When the data in entered into the accounting system, all
of the calculations including additions and subtractions are and all done
automatically by the software making it more time efficient and more accurate
as computers don’t take a lot of time to calculate and doesn’t make human
errors. Furthermore using accounting software’s makes it easier to meet IAS
standards and the Accrual concepts. Also this makes the financial accounts and
financial statements made highly reliable which meets the accounting concept of
reliability. Another advantage would be it is easy to access. For example if
you were not in your office you may be able to access accounts and financial
statements at home securely. This is more often when you have an online
accounting system.

9 Advantages of Computerized Accounting

 

 

 

Computers help in the paying of
several bills for a businesses. By using accounting software such as sage 50
for example, it becomes easy to pay bills and also you are able to record an
expense 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 print
statements and therefore this speeds up the accounting side of a business being
run. In addition, computers make sure that there is no need to write checks
manually. Data is inserted to the system by the workers doing the accounts and
also this means it is easier to retrieve when needed. (Let’s Log In 10 (Revised
Edition)).

Disadvantages of computerised
accounting

It is frequently we speak about how
computerised accounting is brilliant for businesses. But it gets us to think
how people have done without it. The use of accounting applications is very
popular that only a few of us have well thought out the disadvantages of using
computerised accounting to complete accounting tasks, nevertheless these
disadvantages still do exist.

The accounting software’s and
applications needs you to take time to understand how to use it. You could be a
qualified accountant, you’re still required to know what every button and
command menu is used for to use the application effectively. This process could
be resulting is costly errors. Occasionally paid training is needed to learn
and 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 may
be costly to buy and maintain. And when new system updates, a lot of time will
need to be invested into training. If a computer was to breakdown, get hacked
or stolen then data will be lost. If precautions were not taken such as downloading
anti-virus such as Avast Endpoint Protection Advanced, there will be a security
risk from hackers and spying via the internet. Hence it is necessary to have good
security defences in place when using the accounting software’s, adding to the
costs.https://www.buzzle.com/articles/advantages-and-disadvantages-of-using-computerized-accounting.html

 

 

 

Conclusion

As a current accounting student
having experienced both manual and computerised accounting many people and
myself can conclude that computerised accounting is definitely the way forward
and that is not just an opinion as we can see it has revolutionised the
accounting world with its attention to detail and accuracy. For accountants to
benefit and make full use of the accounting software’s they would have to
understand it and that is why traditional accounting is still amongst us today
as it is a learning curve. The questions remains has computerised accounting
hindered bookkeeping? I do not think so because it has concurred many flaws and
issues previously seen or experienced in traditional accounting.