There are many advantages of computerized Accounting System. Let us discuss few of them in detail.
1. Automation: As all the calculations are handled by the software, omputerized accounting eliminates many of the mundane and time-consuming processes associated with manual accounting. For example, once issued, invoices are processed automatically thus saving time.
2. Accuracy: This accounting system is designed to be accurate to the minutest detail. Once the data is entered into the system, all the calculations, including additions and subtractions, are done automatically by software.
3. Data Access: Using accounting software, it becomes much easier for different individuals to access accounting data outside the office, securely. This is particularly true if an online accounting solution is being used.
4. Easy representation of data in various formats: Viewing the accounts using a computer allows the users to take advantage of the option to view the data in different formats i.e. one can view data in tables and using different types of charts.
5. Reliability: Since the calculations are very accurate, the financial statements prepared by computers are highly reliable.
6. Scalable: When a company grows, the number of transactions entered into the system increases, as a result of which the need for accounting not only increases but also becomes more complex. With computerized accounting, everything is kept straight forward because shifting data using software is easier than sifting through a bunch of papers.
7. Speed: Using accounting software, the entire process of preparing accounts becomes faster. Furthermore, statements and reports can be generated instantly at the click of a button. Managers do not have to wait for hours, even days, to lay their hands on an important report.
8. Security: The latest data can be saved and stored in offsite locations so it is safe from natural and man-made disasters like earthquakes, fires, floods and terrorist attacks. In case of disasters, the system can be quickly restored on other computers. This level of precaution is taken by Computerized Accounting.
9. Cost-effective: Since using computerized accounting is more efficient than paper-based accounting, than naturally, work will be done faster and time will be saved.
