Question
State the limitations of Computerised Accounting System.
✓
Answer
Limitations of Computerised Accounting System are given as below..
$(1)$ Trained Manpower : To get optimum benefit of automation trained manpower arerequired.
$(2)$ Huge Investment: If computer hardware and software are selected improperly then one cannot derive desired benefit for the investment. Many times units invest hugeamounts in selection of proper hardware and software and they are not able to take dueadvantage of such investment
$(3)$ Unemployment: Computerisation can lead to increased unemployment as the accountingwork with the help of automation required less number of persons as compared tomanual accounting.
$(4)$ Changes in Technology: Frequent change take place in computer hardware andsoftware so investment in outdated technology will result into frequent expenses toupgrade the same.
$(5)$ Defective Programmes: If software or computer programmes are defective then desiredbenefits cannot be obtained.
$(6)$ Limitation of Machines: A machine works according to the manner in which it isprogrammed. For any situation for which a machine is not programmed, the programmewill have to be modified. Such modification, results in additional expenses.
$(7)$ Danger of Data Theft: When accounts are maintained with the help of computers, theftof data can be made easily and third party can steal the data easily even if he gets accessto the computer for very less time.
$(8)$ Danger of loss of Data : If computer system crashes all the data therein may get lost andone may lose important information stored by hard work of many years.
$(9)$ Lack of Decision Making : Some steps in accounting cycle involve judgement andothers are primarily mechanical. Computer lack ability to take decisions. Hence, wheneverthere is need for judgement, human with power to think can do such work and machines cannot do.
$(10)$ Chances of Manipulation : In computerised accounting system, manipulations inaccounting information can be done very easily.
$(1)$ Trained Manpower : To get optimum benefit of automation trained manpower arerequired.
$(2)$ Huge Investment: If computer hardware and software are selected improperly then one cannot derive desired benefit for the investment. Many times units invest hugeamounts in selection of proper hardware and software and they are not able to take dueadvantage of such investment
$(3)$ Unemployment: Computerisation can lead to increased unemployment as the accountingwork with the help of automation required less number of persons as compared tomanual accounting.
$(4)$ Changes in Technology: Frequent change take place in computer hardware andsoftware so investment in outdated technology will result into frequent expenses toupgrade the same.
$(5)$ Defective Programmes: If software or computer programmes are defective then desiredbenefits cannot be obtained.
$(6)$ Limitation of Machines: A machine works according to the manner in which it isprogrammed. For any situation for which a machine is not programmed, the programmewill have to be modified. Such modification, results in additional expenses.
$(7)$ Danger of Data Theft: When accounts are maintained with the help of computers, theftof data can be made easily and third party can steal the data easily even if he gets accessto the computer for very less time.
$(8)$ Danger of loss of Data : If computer system crashes all the data therein may get lost andone may lose important information stored by hard work of many years.
$(9)$ Lack of Decision Making : Some steps in accounting cycle involve judgement andothers are primarily mechanical. Computer lack ability to take decisions. Hence, wheneverthere is need for judgement, human with power to think can do such work and machines cannot do.
$(10)$ Chances of Manipulation : In computerised accounting system, manipulations inaccounting information can be done very easily.
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