Computer accounting has been growing in popularity since the availability of the Internet as a worldwide communication medium began to grow. Individuals and companies manage their money and assets one way or another. They usually hire accountants to help them carry out the requirements of accounting and balancing their books. Before the internet became inescapable, these accounting protocols were performed manually. Today many accountants and non-accountants alike use computer software to perform these duties. However, this convenience has positive and negative sides. One of the important advantages of computer accounting is that it is efficient. In less than half the time needed for traditional, non-computer accounting, you can complete the required functions through computerized programs. Some additional advantages using computerized accounting system include: 1. Reduction in processing cost. The large reductions in the cost of hardware, software, and the availability of user-friendly packages. The manual system has lost its comparative cost advantage. 2. Speed of processing. The computer can process thousands of transactions at incredible speeds, and high speed printers enable output to be produced at thousands lines per minute. 3. Error reduction. Once programmed, the computer is virtually error free in both processing and performing mathematical calculations. Manual system are much more prone to human error. 4. Automatic posting. Once data has been entered all posting is performed automatically by the computer. 5. Automatic production of documents and reports. The computer can be programmed to produce automatically up to date reports on request and accounting documents such as invoices and statement of accounts. 6. Improved reporting. The computerized system can be used to generate a wide range of reports such as analyses of sales by product, salespeople and customers. 7. Faster response time. This provides the users with the...
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