• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Describe the advantages and disadvantages of using a computerised system, giving examples throughout.

Extracts from this document...

Introduction

Task 1 Describe the advantages and disadvantages of using a computerised system, giving examples throughout. By using a computerized accounting system can help a business manage accounts more efficiently. Popular systems include Sage, or Omni accounts. It can make the process quicker and more straightforward. An accounts system will be used for all the important financial transactions in the business and the business will rely on it to give critical information about the health of the business. A computer accounting system can replace the manual handwritten accounting records, the ledgers and daybooks. Written records are normally the traditional form for recording information, particularly for small businesses. Traditionally, accounts were kept on paper with handwritten entries. Many small businesses still use the traditional methods of book-keeping, often using specially printed books to organize records. However, handwritten accounts can take a significant amount of your business' time and it is easy to make mistakes. Manual Accounting System: The manual accounting system consists of the following: * Sales ledger * Purchase ledger * General or Nominal ledger * Cash Book Also a business like a sole trader may keep stock control and payroll records, but because of the different expertise of the business a full set of accounts is not always required. ...read more.

Middle

When the system is introduced it must be chosen with great care and with proper professional advice, this is mainly because it has to be suited to the companies required needs and it must be easily operated by the intended workforce. If a business wishes to cut the amount of work from that of a paper based system, a computer and printer will organize the business a substantial amount of time. The financial information is stored in exactly the same way as a paper based system. The main difference is that the computer makes all the entries for the business, based on the information entered, and then will prepare the accounts. There are fewer worries of the accounts balancing because each entry made will be automatically be entered into the right ledgers. There are therefore some potential problems with a manual and computerized system. If used correctly and a careful eye for error is used, then the computer based system will save the user time in the long run compared to an manual accounting. The benefits of a computerized computer system allows staff cuts to be made, as a book keeper will no longer be needed, but instead someone who is comfortable with the software. ...read more.

Conclusion

With a computer, you can request and receive accounting reports at a moment's notice. The most important advantage of using the computer is the speed with which we can get accounting done. In addition, we find that it is very easy to do accounting functions. For example the task of doing double entry, when done from the accounts system it is automated which means the accounting system automatically performs the double entry. However using computerised accounting may have drawbacks, it is possible that data can be lost because of hardware or software damage. Since the computer has no judgement of its own, it does not pick up on errors as a human being does. There can be loss of data due to accidents like fire etc. There can be loss of data or change of data due to fraud or embezzlement. There can be loss or unavailability of data due to loss of staff. Inaccurate data may be due to clerical error or mistakes in programming. Total security is unachievable and some failures must be expected. The right level of expenditure on security measures will minimize the sum of the cost of the measures and the expected loss. The package cost, although small in relation to your other costs, is higher than a paper-based system. Businesses may need to purchase yearly maintenance and support for the accounting package. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level ICT in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level ICT in Business essays

  1. Advantages and Disadvantages of e-commerce in terms of easyjet

    Consequently more and more people have been in a position to give it a try. A much wider base of people with access to websites has made Web-based businesses much more viable. Furthermore there are many government initiatives that give funding to people to pay for things such as computers.

  2. Implementation of ATMS at SBI. Banks in India are looking at deploying biometric ATMs ...

    � Account for cash found excess / short on the day it is detected. � Ensure that excess cash found in ATM is parked in Sundry Deposit account. When a customer makes a claim, the amount can be refunded after proper enquiry.

  1. kanthal - accounting

    Over a period of several months of interviews and investigation, the team was able to divide Kanthal's costs into order and volume costs. Further analysis revealed four major cost drivers associated with order placement and completion: 1. Manufacturing order costs - includes the cost of setup and other activities when ordered products are not in stock.

  2. Report for StGeorges School computer system

    wouldn't require the organisation to spend any of their allocated budget Disadvantages * The major disadvantage for this option is that the school doesn't improve any of their objectives on improving their IT System which could be extremely beneficial * The second option would be to implement a totally new

  1. E2: describe and explain the objectives of the business

    All new products have to satisfied quality and hopefully improve technology i.e. tyre performance. * Manufacture Division They are trying to improve the techniques of manufacturing to reduce costs and increase quality. Hopefully creating more and better sales. They work closely with the sales department, making sure sufficient tyres have been made ready to meet orders taken.

  2. Explain how a computerised system could improve the efficiency of an organisation, giving examples ...

    Information could be easily lost or damaged. This is because it is on paper. The paper could have fallen out of the book, in the case of the cleaner he could easily misplace his pocket book, if there was a fire or flood, the book where all the recordings were made could be easily destroyed.

  1. The Entourage System: A Feasibility Study

    Presentation of Search Result BoyhBoth of the search options will return the results in the same format showing head-shoulder pictures of all matching profile up to 15 pictures per page with link to view the subsequent pages of the results.

  2. College admissions computer system

    Task 1: The recommended operations software is Windows 98, 2000 or XP. Nowadays, the Internet is essential and it looks more professional for a business, and makes ordering cheaper, faster and obtains more orders from the Internet. The communication software such as: Outlook Express can be used.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work