Q.Explain the advantages and limitations of a Computerised Accounting System.

A Computerised Accounting System brings real benefits in speed and accuracy, but also genuine risks and costs that a business must manage.

Advantages of a Computerised Accounting System. Compared with manual bookkeeping, a computerised system offers: (i) Speed in recording, posting and reporting; (ii) Accuracy, since the software performs every calculation without arithmetic error once data is correctly entered; (iii) Real-time information, letting management check the current cash, debtor or stock position at any time; (iv) Better and more varied reports, since the same data can be presented in several formats with no extra recording effort; (v) Efficient storage and retrieval of years of records in a small space; (vi) Scalability, handling a growing volume of transactions far more easily than a manual system; (vii) Security, through password-protected logins and access levels; (viii) Backup facility, protecting against permanent data loss; and (ix) Easier statutory compliance, since digital records simplify filing returns such as GST returns. …

Answering only advantages or only limitations when the question explicitly asks for both, or listing the …