Question

Compare and contrast the differences and similarities between a manual accounting system and a computerized accounting system. Some considerations include the speediness between the two, the ability to generate quick reports, and what if your software crashes. What would you do then?

Answer 1

Manual accounting system and Computerized accounting system -

Meaning -

Manual accounting system - Manual Accounting is a system of accounting that uses physical registers and account books, for keeping financial records

Computerized accounting system - Computerized Accounting is an accounting system that uses an accounting software, for recording financial transactions electronically.

Speed -

Manual accounting system - Slow

Computerized accounting system -  Comparatively faster

Calculation -

Manual accounting system - All the calculation is performed manually

Computerized accounting system -  Only data input is required, the calculations are performed by computer system.

Technical Issues -

Manual accounting system - Not Possible.

Computerized accounting system - Huge chances of getting technical error in computerised accounting system. If back ups are taken on timely manner then there will not be any problem but otherwise it will become huge impact.

Expensive -

Manual accounting system - Relatively less expensive

Computerized accounting system - Expensive as compare to manual accouting