Q.Discuss the advantages of a Computerised Accounting System.

Computerisation brings several practical benefits over manual bookkeeping, mainly around speed, accuracy and the quality of information produced.

A Computerised Accounting System offers several advantages over a manual system, most of which stem from the fact that the software itself performs the mechanical work of posting and calculating.

1. Speed — vouchers are posted and reports generated far faster than by hand.
2. Accuracy — every calculation is performed by the software, eliminating casting and carry-forward errors.
3. Up-to-date information — a trial balance or a customer's balance can be checked at any moment, not only at period-end.
4. Easy storage and retrieval — years of data can be stored compactly, and any past entry retrieved almost instantly.
5. Higher-quality reports — the same data can be analysed in many ways (ageing of debtors, branch-wise or product-wise profitability) without any re-entry of data.
6. Scalability — the system absorbs a growing volume of transactions far more easily than a manual system can absorb more clerks and ledgers.
7. Easier statutory compliance — periodic filings such as GST returns and TDS statements are easier to prepare from already-computerised data. …

Answers that list only speed and accuracy miss the marks reserved for scalability, compliance and backup — a complete answer …