Advantages of Computerised Accounting System
The main advantages of computerised accounting system are as follows:
(i) Faster processing
Computers require far less time than human beings in performing a particular task.
Therefore, accounting data are processed faster using a computerised accounting system.
(ii) Accurate information
There is less space for error because only one account entry is needed for each transaction unlike repeated posting of the same accounting data in manual system.
Computer systems are immune to boredom, tiredness or fatigue. Therefore, these can perform repetitive functions effectively and are highly reliable.
(iv) Easy availability of information
The data are easily available and can be communicated to different users at the same time.
(v) Up-to-date information
Account balances will always be up to date since the records are automatically updated as and when accounting data are entered or stored.
The computer based accounting system ensures better use of time and resources.
(vii) Storage and retrieval
Computer based systems require a fractional amount of physical space as compared to the books of accounts in the form of journals, ledgers and accounting registers.
(viii) Works as a motivator to employees
Employees using computer systems feel more valued as they are trained and specialised for the job.
(ix) Automated document production
Accounting reports like trial balance and financial statements are generated automatically and are easily accessible just by a click of the mouse.
(x) MIS Reports It is easier to monitor and control the business using the real time management reports generated by the computerised information systems.