Question

Explain the advantages and disadvantages of computerized accounting system. (300-400 words)

Answer 1

Advantages and disadvantages of computerized accounting system

Advantages :

1. Fast, Powerful, Simple and Integrated: Computerized accounting is designed to automate and integrate all the business operations, such as sales, finance, purchase, inventory and manufacturing. With computerized accounting, accurate, up-to-date business information is literally at the fingertips. Computerized accounting has user-definable templates which provides fast, accurate data entry of the transactions.

Computerized accounting has the ability to handle huge volumes of transactions without compromising on speed or efficiency.

2. Complete Visibility & Scalability: With Computerized accounting the company will have greater visibility into the day-to-day business operations and access to vital information. Computerized accounting adapts to the current and future needs of the business, irrespective of its size or style.

3. Customised: Computerized accounting allows the company to enter data in a variety of ways which makes work a pleasure. Adapting to the specific business needs is possible. Hence, a software can be tailor-made accordingly to the need of the business.

4.For quick decision making & improved Business Performance: Computerized accounting is a highly integrated application that transforms the business processes with its performance enhancing features which encompass accounting, inventory, reporting and statutory processes. This helps the company access information faster, and takes quicker decisions. Computerized accounting also guarantees real-time optimization of operations and enhanced communication.It generates real-time, comprehensive MIS reports and ensures access to complete and critical information

5.Easy Access to Information : The data can be easy to access information from any where using the computer system

6. Storage Data : storing the data in computer is more

7. Backup and Recovery : In computarised information system the data will be backup and easy to recovery

Disadvantages

Technical Issues: This technology is always prone to outages and other technical issues

Security : In computer system the main issue is security if the system is not secure well the third party can access the data easily

Prone to Attack:· Storing information in the computer could make the company vulnerable to external hack attacks and threats. Nothing on the Internet is completely secure and hence, there is always the lurking possibility of stealth of sensitive data.

Cost of Training : The use of computarised accounting system the specific knowledge of computer hardware and software if the employee not known a special train is required

Health Issue : Continous usage of computer system is danger to health

Incomplete Information : The inforamtion not always completed because the user not know the information he is not filling the details properly

Hope you Understood.   If you have any doubt please leave a comment. Thank You.