Advantages of Computerized Accounting
The advantages of the computerized accounting system are:
1. Large Volume of Transactions: The transactions in the business houses are very large in number in present-day situations. The computerized accounting system can store and process a large volume of transactions with speed and accuracy.
2. Scalability: A computerized accounting system is scalable to handle growing business transactions.
3. Security: The accounting data under the computerized environment is safer than the accounting data under the manual system. The data can be kept secure by using a password and allowing only authorized users to access the data.
4. Timely Reporting: Available of reports on time enables the management to make quick decisions, which is an important element for the success of an enterprise. A computerized accounting system makes these reports available as and when required.
5. Labor Cost: The cost of maintaining books of account under the computerized process is lower than in the manual process.
6. Less Process Work: under the computerized process, there is less paperwork as compared to the paperwork in the manual process.
7. Flexible Reporting: Reporting under the computerized process is flexible in comparison to the manual process. The database can be processed further to obtain the desired report.
8. Queries: Replies to queries based on external factors can be obtained easily under a computerized process. For example, the list of creditors who have not paid on time can be taken out by processing the database.
9. Accurate: Computer statements are for more accurate in comparison to manual statements.
10. Updating: Updating and treatment of wrong transactions are easily done.
11. Financial Statements: from the daybook, the voucher posting software can manage the
General Ledger, Trial Balance, and Balance Sheet.