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Computerized Accounting System essay
← Managerial AccountingBusiness Risks →

Computerized Accounting System. Custom Computerized Accounting System Essay Writing Service || Computerized Accounting System Essay samples, help

The advantage of a computerized accounting system is that it is faster. It is faster to input data in a computer compared to doing it manually since it has inbuilt databases for suppliers and customers. A computerized system is effective in the automatic production of documents. The other advantage is that there is a high level of accuracy. Computerized system minimizes to a great extent the occurrence of errors since there is only one entry compared to the manual way where there may be two or three entries that increases chances of errors.  A computerized system also allows for compatibility. This means that different people within the same organization can share information stored in the system. A computerized system also leads to cost savings. The programs reduce staff time and it reduces audit costs since records are neatly kept (Shann Turnbull, P. 1997)

Disadvantages of a computerized system

The systems are subject to risks such as hacking and fraud. This can lead to important and confidential information about the firm being leaked to an unauthorized person which can affect a company. The systems are also costly. It is expensive to purchase and install the systems in an organization. They require regular updating, and the staff has to be trained to to be able to use them which adds up to operating costs. The computer systems are difficult to understand and they require experts to use them (Phillip Lipton & Abe Herzberg 2001). They depend on power and suffer a great deal of failure during power blackouts. A computer system can cause health problems to its users.

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