Question

What are the benefits of the computerized accounting system to record sales transactions over the manual accounting sustem?

Answer 1

Benefits of computerised accounting system to record sales over manual accounting system:

1. Computerised accounting system is significantly faster than manual accounting system. Recording sales instantly updates the required accounts, databases and inventory records etc.
2. As mentioned above, all the required accounts and other records get updated instantaneously. So the information in the computerised system is always up-to-date.
3. There very less room for error because the only error most likely to occur is in the entry of figures. It involves very less manual effort. The manual accounting system involves significantly higher human involvement and hence there is more room for error.
4. Computerised accounting systems support use of multiple currencies which is turning out to be a very essential feature in the global market. Manual accounting gets complicated as more currencies are involved.
5. Computerised accounting system, if chosen appropriately, can prove to be economical and can improve accounting efficiency. Staff salary can be significantly reduced by computerising accounting.
6. Most computerised systems provide various industry specific reports and features which make things much simpler for the management by helping it exercise more control and oversight.
7. The accounting records are more secure as they can be saved in multiple locations at a time and if one of them gets affected beyond recovery, the other copies can be used to revive the information. Manual records once lost are hard to recover. The records can also be password protected and can be kept safe from strangers.