Advanatges of Computerized Accounting

Only available on StudyMode
  • Download(s) : 164
  • Published : November 3, 2010
Open Document
Text Preview
The Advantages of Computerized Accounting System

Speed and accuracy
Computerized accounting system for invoicing make the accounting process run faster and more efficiently. Instead of using the old-fashioned manual paper and pen, you can print professional-looking invoices fast. You even can send out invoices via e-mail. The faster invoices get out, the faster you are likely to get paid. Many invoicing or billing software packages interface with the rest of your accounting software, making the process of preparing invoices and recording them seamless, fast and automatic. Computerized accounting programs are quicker as far as entering information is concerned.

End-of-Period Reports

Computerized accounting packages will automatically pull all relevant ledger entries for the period reports. If you later want to review the financial information several years ago with a computerized accounting system, it can be done easily. This is because all the data have already storage in the system. Saving Money

Even though there will be the immediate cost of the software, you are potentially saving the costs of unnecessary audits as well as saving money through time saved. Improved Accuracy
Even the most experienced accountant may make errors from time to time. While some larger businesses may be able to afford an entire accounting team to double check their financial statements, small businesses, or those with a complicated financial situation will want to be able to have the confidence to stand behind their accounting records. Even if data is keyed in incorrectly, a computer may be better able to immediately recognize errors and changes and alert users to them. Automatic Generation

The majority of computerized accounting systems have features such as order-entry and generation of associated invoices. The employer can create accounts for their clients, storing their names, addresses, orders and invoices for as long as necessary. A computerized system also allows the employer to make and print account statements. Further, many accounting systems have a payroll feature, which enables complete payroll processing, including the generation and printing of checks and reports. Timeliness

The employer is able to print and reprint customer orders, invoices, and all other accounting transactions as required. He can also easily find employees' payroll data such as current address and pay amount without having to search through filing cabinets to locate personnel files. With fewer errors and the software automatically generating reports, time will be saved in the long run. Staff Motivation

A computerized accounting system often requires the staff to undergo training to learn new skills, making them feel motivated. Further, the employer can outsource training to a representative from the software company, creating less pressure on staff members to administer the training themselves. Reduces Embezzlement

Using the computerized accounting system can reduces embezzlement. For the example, if a employer try to steal money from the company, it will be difficult to cover it because computer software already recorded and saved all the information. So that the accountant of the businesses can checking the information is correctly or not in a short period of time.. Data Security

For record-keeping and compliance with the law, businesses often must keep financial records for years. It is extremely difficult to keep copies of paper records in multiple locations, and a catastrophic incident that results in the destruction of paper records can damage a business in many ways. With a computerized accounting solution, files and important financial information can be stored online or on off-site data cartridges--or both--giving a business the level of redundancy that it needs to recover from a catastrophe and ensuring compliance with all applicable data retention laws. I want to do this! What's This?

Disadvantages of Computerized Accounting System...
tracking img