There are a large number of advantages of the computerized accounting system. Here we provide the most common and important advantages of computerized accounting system.
Advantages of computerized accounting
1. Reduce Error: The biggest Advantage of computerized accounting is it dramatically reduces human error. As the computer does most steps automatically, many errors resulting from human intervention in a manual system, such as errors in posting or preparation of financial statements, are eliminated.
2. Reduce Expenses: It is very much cost-effective as a lot of software firms are offering many accounting packages at a very reasonable cost. In the computerized method, a person can handle an organization’s account within a few hours. But in the manual process a person needs a full day to do that job so, he must need to pay more salary.
3. Auto Report Generation: Accounting software can generate a report very quickly according to your demand. On the other hand, a human can take many hours even some days to make a report.
4. Accuracy: You might know the proverb “to err is human” this is also applicable here in accounting. On the other hand, the computer does not make a mistake. So, in computerized accenting system accuracy is the most impotent advantage of computerized accounting.
5. Automation: All of the accounting software are automated you don’t calculate anything just enter the number.
6. Reliability: Any types of reports or data processed by accounting software are more reliable than manual accounting processes.
7. Easy Document Production: In a business organization we often need various documents like inventory list, sales receipts, sales invoices, debit and credit memos, etc which is a matter of print.
8. Quick Processing Time: It can provide data up to the minutes to the users.
9. User-Friendly: It can wonderfully user-friendly and very convenient for the users.
10. Security of Data: You may lose your accounting data record in many ways like a burn, lose, waterfall and it can be destroyed after a few years. But software never loses data because it has various backups. Even after many years, you can find your data.
11. Instant Access to Data: In the manual process, you need to search many account books to find information but in the computerized process it is instant.
12. Helpful for Staff: The accounting department should run more and more smoothly and the computerized accounting process reduces time spend and make accounting hassle-free.
13. Clarity: When a business organization uses computerized accounting they are free from poor handwriting, spelling mistakes, calculating mistakes, etc.
14. Real-Time Transaction: Real-time means when the transaction did then record happens. In the manual process, it is not possible all the time.
15. One-time entry: In the computerized system the accountant enters data only once.
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Well explained and long article, thanks it helps me