Is computerized accounting the way forward?
There was once a time when before the huge emphasis on speed and technology of computers, where accounting practices were old fashioned, simplistic and processed manually with transactions recorded. Computers were huge and expensive, and there wasn’t the scope for adaptability to moving on to a digital platform like there is today. Then computers become affordable and imperative to businesses; virtually all tasks moved onto a digital platform, which also included the accounting practice.
What do you think are the main differences between the traditional and digitalized methods? We’ve complied what we believe to be the core and fully recognizable differences. We’d be keen to know if you agree with us.
There is no disputing the fact anymore that computers are now affordable for those for require them and the models available are endless. The manual setup may work for small businesses up to a certain point, but it’s not going to be a productive way of investing time, especially if there are alternative and digital methods available. Time is always going to be of the essence.
The difference in speed of the operations and processing is clear. With a digital platform, data is inputted online and saved, and reporting can be generated to supplement the information already provided. Establishing key piece of information about a business’s operation such as profitability is available instantly and as a result, various decisions can be completed in a similar speed.
It’s an undisputed fact that the accuracy levels on any digital platform will always be more superior then that of any manual account input. An essential point being that there is time lost when having to amend errors that have been made. By using software this problem is effectively eradicated. Efficiency is always going to be one or if not the main aspect when looking at improving or changing the setup.
Data and information backed up
In traditional accounting, the risk of losing information is constant, and even the most robust and organised or accounting practices may struggle with retaining and organizing information. Backing up data and having multiple copies is imperative to any organization; with this problematic for manual accounting practices where a great deal of time could be spend searching for paperwork or data, or possibly having to re-do work for the client.