A computerised accounting system is when there is special software which is used to record, store and analyse information from financial transactions. The computerised accounting system provides many advantages for its use.
One of the many advantages would be that it greatly reduces paper work which in turn eliminates human error which is so easy done. The most common human error is making mathematical mistakes. This potential error is eliminated through the automated mathematical system which never makes a mistake, making the accuracy very advantageous. This advantage in turn saves the company money as mistakes create a chain reaction, making it very difficult to fix. The limitation of human errors is one of the best advantages that come with computerised accounting systems.
A second benefit of using a computerised accounting system would be that is saves the company a considerable amount of money. Lower cost can be brought about through computerised accounting systems as it is far more efficient. The better use of recourses and time contributes towards the saving of the company’s money. It also reduces the amount of employees needed which greatly reduces labour expenses. Money which is saved through computerised accounting systems can be spent in another area which is more important for example, expanding their company or investing in new technology which will further create more favourable costs. Computerised accounting systems allow managers to identify clearly and accurately the company’s financial position and so they can see where they need to makes changes in order to reduce their costs. This further benefits the company as the computerised accounting systems provide reports on stock, evaluation, payroll, customer accounts as well as profit and loss which contribute to the quick adjustments the company can make in their business strategy and reduce their costs.
An additional advantage of computerised accounting systems would be that the speed of using...