Compare the benefits of using manual and computerised accounting systems to record business transactions

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BTEC Business Level 3- Accounting Systems Unit 8 [P3, M1,]


[P3] explain the benefits of using a computerised accounting system

[M1] Compare the benefits of using manual and computerised accounting systems to record business transactions

Computerised accounting

Computerised accounting is a system which enables the user to enter the transaction into the program once and all accounts are updated as necessary. For example if the business buys £2000 worth of office supplies with a combination of £1000 cash and £1000 credit instead of going to each account and posting the transaction. A computerised system will just check office supplies, cash and the selected account payable account and the transactions automatically would post in the prospective accounts.

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Benefits of computerised accounting

  • Faster and efficient
  •  Automatic generation of accounting documents like invoices, cheques and statement of account;
  • Cheaper in maintaining than a manual accounting system;
  • More timely information can be produced;
  • No manual processing of the data they are all automatically  posted to the various ledgers/accounts
  • Many types of useful reports can be generated for management to make decisions

Disadvantages of computerised accounting

  • Power failure
  • computer viruses and hackers are the inherent problems of using computerised accounting
  • Once data been input into the system, automatically the output are obtained hence the ...

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