Comparing Accounting Software Programs to Manual Accounting
Manual accounting uses several paper ledgers to record financial transactions. It is very time consuming to record each single transaction onto paper, being very cautious not to make an error. There are several ledgers for each part of the accounting system, such as accounts payable, accounts receivable, and revenue accounts. Combining these ledgers into one general ledger, provide the balance for each ledger. The general ledger assists in organizing income statements and balance sheets. On the other hand, there are computerized programs such as spreadsheets and simply accounting, which necessitate accountants to enter data into the program, and then mathematical algorithms calculate the information into the ledgers. Computerized system also allows accountants to create analysis and report any changes quickly and accurately. Additionally, all of the transactions recorded are accessible and through computerized accounting systems, giving accountants better access to the information. Although, manual accounting is time consuming and dull it does come with benefits. You can easily go over the ledgers to see if you made any errors or not, if there are, it’s simple to make changes. For example, when you need to change an entry on your ledger you simply erase it with an eraser. On the computerized accounting systems, it would take much more time to change the error. Moreover, one of the major benefits of manual accounting is that you avoid corrupt data. When you are using a computerized accounting system, sometimes the data will become corrupted and you will no longer be able to access that data which could end up in chaos. Another advantage of manual accounting is the accessibility. It is easier to access the data from a book rather than getting the data from the computer that only someone can access. The benefits of using a computerized accounting system are numerous. Working on the...
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