Question
Briefly explain three advantages and three disadvantages of computerised accounting.
✓
Answer
Advantages: Advantages of Computerised Accounting A Computerised Accounting System has many advantages, as discussed below:
- Large Volume of Transactions: In the present-day business environment, the transactions of a business are normally large in volume. The computerised accounting system can store and process such voluminous transactions with speed and accuracy.
- Scalability: A computerised accounting system is scalable to handle the growing transactions.
- Security: The accounting data under the computerised environment is safer than the accounting data under the manual system. The data can be kept secure by using a password, i.e., allowing only authorised users to access the data.
- Timely Reporting: Availability of reports on time enables the management to take quick decisions, which is an important element for the success of an enterprise. A computerised accounting system makes these reports available as and when required.
- Controls: If adequate controls are not built and, where built, are not followed, it can lead to loss of data. It is important to take back-ups at regular intervals to avoid such a situation.
- Data Corruption: The data can get corrupted through viruses that may come in through the internet or the use of external input devices without scanning them for viruses.
- Trained Computer Operators: Untrained computer operators can lead to loss of data.
- Limitations of Software: The software is developed on the basis of the experiences of the team of developers. As such, it may not be able to deal with a specific problem that may arise.
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