Case Questions

Topics: Computer program, Computer, Application software Pages: 8 (2861 words) Published: May 7, 2013
Shiva did not like computers. A skilled accountant, she was shocked when her boss required her to use accounting software to transfer all the data from books and journals to the companies’ computer program. She used to do all calculation and recording information using paper and a pen. Shiva trusted the manual method; however she was suffering from spending hours to do her tasks. She knew that accounting process is an integral part of her company, thus she was not sure how reliable computer’s software can be. Max Weber (2011) in the article, “Manual Accounting Versus Computerized Accounting,” explains accounting as an important part of each business. Every company has to reveal sets of particular financial information and management reports to the public and the government. Accounting is keeping books on company credits and debits which are account entries with negative and positive value for assets. In other words, accounting is a systematic process of recording, reporting, and analyzing financial transactions of a business, and accountants are people who perform these processes. Accountants analyze the financial statistics of businesses including net profit and economic information that are used and judged by consumers and government taxation. Businesses use it to help them control their transactions and ensure that the costs are meaningful. Accountants help in reducing unnecessary expenses and increasing the revenue of the companies. In the article, ”Comparison Between Manual and Computerized Accounting” Mary Magdalene (2010), an expert author, mentions that accounting has three main steps; 1) Recording all the transactions to a “journal”, 2) Posting them into ledger accounts, 3) Preparing trial balances, adjusting entries and trial balances, preparing entries and balance sheets. These steps may seem simple but they could be hectic having thousands of entries and transactions. Not very long ago, all businesses used to do the bookkeeping processes manually; however, technology has affected accounting well. Nowadays, most companies are using computer based accounting systems because this developing technology makes the accounting practices easier. Although both manual and computerized accounting systems have advantages and disadvantages in speed, accuracy, and cost, computerized systems are better overall.

One major disparity between manual and computer based accounting is speed. Due to the minute by minute financial changes, efficiency plays a noticeable role in accounting. Performing bookkeeping tasks by hand takes a lot of time while computers are more efficient. Weber (2011) notes that in the manual accounting, employees should perform all accounting processes such as calculating trial balances, journaling transactions, as well as much more manually in a limited period of time; however, computerized systems makes it easier and faster. Inputting the transactions into computer software is the only thing which accountants need to do in computer based systems, and the computer will perform the rest. It means that in an accounting program, as soon as, the data is entered in the system once, it will be saved and the program uses them in reports in speeds never dreamed of in the manual approach. The article, “Manual and Computerized Accounting” (2009) argues that the entire employees salary sheets of big companies, requiring a large accounting department, can be built in minutes by computer software. Every company has numerous employees and providing their monthly salary sheets takes a long time and numbers of accountants. However, this process is done in a very short time by computer programs. The ITS tutorial website in its article, “The Advantages of Using a Computerized Accounting Package Such as MYOB Accounting Software,” (2005) mentions that the one important advantage of the computer based accounting is in its ability to complete transactions in very little time, contrary to manual accounting which is a...
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