accounting is a key slogan of each company. Without the accounting practice, it is difficult to be effective in your business. Its basically allows you to monitor transactions that take place and ensure that all expenses are significant. Accounting helps to reduce unnecessary costs and increase the profitability of the business scale. All companies that apply the same strategy to record the transactions to achieve the net maximized with reduced expenditure to a minimum. Accounting can be done manually or by using the accounting software. We will discuss about the advantages and disadvantages of manual bookkeeping and accounting records in this article.
accounting cycle generally has some passages of activity. The recording of all the operations as "Journal". publishing them in the ledger accounts. Preparation of trial balance, making the adjustment items, preparing adjusted trial balance, preparation of financial statements and correct information, publishing the closing entries and the balance sheet. This is all about accounting. It's not a big deal to accomplish this sequential process, but its become dramatically hectic when there are thousands of transactions.
let's focus on the major accounting manual themes here. paper works involved in manual accounting. All accounting work will be done manually on paper. Obviously, it would take much time and resources to the largest organization. Computerized accounting saves much time in which the employee must record transactions and all other calculations would be made automatically by software or by a request. computerized accounting provides accurate results on the precise relationship but some software requires a lot of time and resources, as required by the manual accounting. Therefore, it is not easy to decide which software would work faster and cheaper. The best computerized accounting software is extremely expensive. On the other hand, computerized accounting able to handle thousands of calculations at the same time in which the manual accounting needs much time to do so. Even then, we can not say that the manual accounting provides no benefit. manual accounting can be managed with a low-cost workforce and resources. It is reliable as is done manually with minute observations. Do not rely on the machines.
The main advantage of computerized accounting is the speed and accuracy. We can have a system backup and easy restoration. All data and information will be insured. Disadvantages include high cost, the system upgrade, special training for personnel, relying only on machines and reduced use.
Both computerized and manual accounting obtained through the merits and demerits. They can be differentiated only in terms of cost, speed and mobility. It can be implemented according to the size of the structure. Small and medium-sized prefer manual accounting considering the low cost. They could use quality accountants and carry out daily activities or even might just offshore their accounting activities to an outsourcing company. the large companies completely rely on accounting records as it gives fast and accurate results. It would be really helpful for them to have accounting records without any chaos.
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