An accounting system is a collection of processes, procedures and controls designed to collect, record, classify and summarize financial data for interpretation and management decision-making.
Computerized Accounting involves making use of computers and accounting software to, classify, record, store and analyze and present financial data.
A computerized accounting system has many advantages. We will look at the 8 major advantages.
Accuracy
These accounting systems are designed to be very accurate and detailed. Data entered into the system are calculated automatically by software.
Staff motivation
It exposes staff to new skills. Availing them opportunity to learn a different method. It gives a lot of motivation.
Global Data Access
There is ease of accessibility when accounting software is used. It is much easier for individuals in an organization to have access to financial information even when they are not in the office.
High Rate of Reliability
We can rely more on calculations done by a computer. The reports created by computers are highly reliable.
Scalability
It reduces the complexity of paper works especially when a company outgrows a certain level. Using accounting software makes everything easy and straight to the point.
High Speed
It takes a whole lot of time to prepare accounting information. Doing them manually can be time consuming. By using accounting software, it becomes faster and easy to prepare any kind of financial report for management decision making.
File Security
Data can be saved and stored in locations free from theft, fire, disasters and any form of attack. Most accounting software companies offer online storage of data.
Saves Cost
We save time and money by using an accounting software. We can reduce the amount of employees in our organization if accounting software is used. One person can do more than what three persons can do manually with accounting software.
In summary, accounting software is a major advancement in the study and practice of accounting. Get stated with the use of a computerized accounting system to grow your business and take advantage of all it offers.
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