‘Computerised Accounting Systems are best form of accounting system’. Do you agree? Comment.
‘Computerised Accounting Systems are best form of accounting system’. Do you agree? Comment.
Yes, we agree with this statement that ‘Computerised Accounting Systems are best form of accounting system’. It becomes very easier to work with Computerised Accounting Systems leading to reduction in the accounting errors. Moreover, the computerised accounting reports are highly reliable, thereby enhances the overall efficiency.
Due to the following positive aspects, the Computerised Accounting Systems certainly enjoy an edge over the Manual Accounting Systems.
1. Speed- The speed of a computer is very high and takes very less time in performing various difficult operations. The accounting data is processed comparatively faster through the Computerised Accounting Systems than it can be done through the manual efforts.
2. Accuracy- In Computerised Accounting Systems, the possibility of errors is minimised or reduced as the primary accounting data is entered only once for preparing various accounting reports and for subsequent usage and processes.
On the other hand, in Manual Accounting Systems, posting of same data is required a numerous times to prepare different types of accounting reports. This increases the possibility of accounting errors.
3. Reliability- As the Computerised Accounting Systems is well-equipped in performing repetitive operations, so it is comparatively more reliable to perform the operations than the manual system. Also, the Computerised Accounting Systems overcome the limitation of Manual Accounting Systems such as tiredness, boredom or fatigue, etc., thereby enhances the degree of reliability.
4. Up-to-Date Information- In the Computerised Accounting Systems, whenever the new accounting data is entered and stored, the existing accounting records automatically gets updated. For example, when a transaction related to purchase of machinery is entered in the Computerised Accounting Systems, then automatically the cash balance and machinery balance on the Assets side of the Balance Sheet gets updated immediately. This ensures that latest information is reflected in the accounting reports at any particular period of time.
On the other hand, the accounting records maintained under the Manual Accounting Systems fail to reflect the latest status. This is because it depends on the human mental capability and patience to update the records each time a transaction happens.
5. Real-Time User Interface- Most of the automated accounting systems are inter-linked through a network of computers. The availability of information to various users at the same time on the real-time basis is facilitated under computerised system of accounting. This is very difficult to avail such facility under manual system as this call for availability of multiple copies of the accounting records that can be accessed by many users at the same time.
6. Automated Document Production- Under Computerised Accounting Systems, the accounting reports such as, Cash Book, Trial balance, Statement of Accounts, etc. are very easy to obtain. This is because most of the computerised systems have standardised and user-defined format of accounting reports that are generated automatically. On the other hand, such an ease cannot be enjoyed under manual system. This is because the accounts books are prepared by different employees, thereby subjected to vary from person to person.
7. Scalability- The computerised systems of accounting are highly scalable as the requirement of additional manpower is mainly confined to data entry for recording and storing the additional vouchers in the computers. Thus, the additional cost of processing additional transactions is meagre as compared to the cost associated with hiring new accountants to handle additional transactions.
8. Legibility- In Computerised Accounting Systems, the accounting records are typed and presented in standard fonts. The various characters especially numbers, alphabets, graphics, etc. are more clear and can be read without any difficulty and ambiguity. But, in the manual system, the writing of different personnel varies; consequently, reading and interpreting the written materials involve errors due to misinterpretation.
Yes, we agree with this statement that ‘Computerised Accounting Systems are best form of accounting system’. It becomes very easier to work with Computerised Accounting Systems leading to reduction in the accounting errors. Moreover, the computerised accounting reports are highly reliable, thereby enhances the overall efficiency.
Due to the following positive aspects, the Computerised Accounting Systems certainly enjoy an edge over the Manual Accounting Systems.
1. Speed- The speed of a computer is very high and takes very less time in performing various difficult operations. The accounting data is processed comparatively faster through the Computerised Accounting Systems than it can be done through the manual efforts.
2. Accuracy- In Computerised Accounting Systems, the possibility of errors is minimised or reduced as the primary accounting data is entered only once for preparing various accounting reports and for subsequent usage and processes.
On the other hand, in Manual Accounting Systems, posting of same data is required a numerous times to prepare different types of accounting reports. This increases the possibility of accounting errors.
3. Reliability- As the Computerised Accounting Systems is well-equipped in performing repetitive operations, so it is comparatively more reliable to perform the operations than the manual system. Also, the Computerised Accounting Systems overcome the limitation of Manual Accounting Systems such as tiredness, boredom or fatigue, etc., thereby enhances the degree of reliability.
4. Up-to-Date Information- In the Computerised Accounting Systems, whenever the new accounting data is entered and stored, the existing accounting records automatically gets updated. For example, when a transaction related to purchase of machinery is entered in the Computerised Accounting Systems, then automatically the cash balance and machinery balance on the Assets side of the Balance Sheet gets updated immediately. This ensures that latest information is reflected in the accounting reports at any particular period of time.
On the other hand, the accounting records maintained under the Manual Accounting Systems fail to reflect the latest status. This is because it depends on the human mental capability and patience to update the records each time a transaction happens.
5. Real-Time User Interface- Most of the automated accounting systems are inter-linked through a network of computers. The availability of information to various users at the same time on the real-time basis is facilitated under computerised system of accounting. This is very difficult to avail such facility under manual system as this call for availability of multiple copies of the accounting records that can be accessed by many users at the same time.
6. Automated Document Production- Under Computerised Accounting Systems, the accounting reports such as, Cash Book, Trial balance, Statement of Accounts, etc. are very easy to obtain. This is because most of the computerised systems have standardised and user-defined format of accounting reports that are generated automatically. On the other hand, such an ease cannot be enjoyed under manual system. This is because the accounts books are prepared by different employees, thereby subjected to vary from person to person.
7. Scalability- The computerised systems of accounting are highly scalable as the requirement of additional manpower is mainly confined to data entry for recording and storing the additional vouchers in the computers. Thus, the additional cost of processing additional transactions is meagre as compared to the cost associated with hiring new accountants to handle additional transactions.
8. Legibility- In Computerised Accounting Systems, the accounting records are typed and presented in standard fonts. The various characters especially numbers, alphabets, graphics, etc. are more clear and can be read without any difficulty and ambiguity. But, in the manual system, the writing of different personnel varies; consequently, reading and interpreting the written materials involve errors due to misinterpretation.
