Computerized Accounting System

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)

Buy Free Custom «Computerized Accounting System» Essay Paper paper online


* Final order price might be slightly different depending on the current exchange rate of chosen payment system.

Order now

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.

Related Accounting essays

  1. FASB Takes up Insurance Accounting essay
  2. IFRS Assignment essay
  3. Accounting essay
  4. Regression Analysis essay
  5. Auditing Information Systems essay
  6. Principal Finance Interview essay
  7. Flexible Budgeting (Advanced Managerial Accounting) essay
  8. Targer Corp. Budget Estimates essay
  9. The Need for Accounting essay
  10. Australian Funghi Importer Pty Ltd essay


Preparing Orders


Active Writers


Support Agents

Limited offer
Get 15% off your 1st order
get 15% off your 1st order
  Online - please click here to chat