D1-Analyze the circumstances under which a business would adopt a computerized accounting system instead of a manual one.
Strive & Plotter Accountant
Prospects Industrial Estate
Dear Mr. Lawson
I`m writing this letter to analyses the circumstances under which a business would adopt a computerizes accounting system instead of manual one.
A business would adopt computerize accounting system instead of manual one because the accounting programs carry out functions such as invoicing, dealing with payments, paying wages and providing regular accounting reports such as trading, profit, loss accounts and balance sheets.
A business may adopt computerise accounting system as the cost of using a manual one are high and less efficient. The business can easily set up the computerise system at a lower cost and this will cut the costs of the business. Computerized accounting offers several more benefits than manual accounting process more information faster, formulas verify calculated totals and errors are less common. Accounting systems also are customizable by industry, allowing accountants the opportunity to use preset templates for their general ledger. Accountants also can store several years of financial information with relative ease, giving them the opportunity to review previous year's information without sorting through stacks of paper ledgers. Most companies will use a computerized accounting system for recording and presenting their financial information. This system allows companies to record business transactions accurately and generate financial reports quickly for management review. While the functions of manual accounting have changed, it will never go away completely. Accountants must review the information presented on financial reports from the accounting system and ensure that it is accurate and valid. Accountants must also ensure that all financial...
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