Q.Explain any three limitations of a computerised accounting system.

A computerised accounting system, despite its advantages, has real limitations a business must plan for.

While a computerised accounting system offers real advantages, it also has genuine limitations that a business must be prepared for:

1. High initial investment. Setting up a computerised system requires spending on hardware, software licences, and training staff to use the system correctly — a cost a purely manual system, needing only registers and stationery, does not carry.

2. Dependence on power supply and trained operators. A computerised system needs continuous electricity to function, and its benefits depend on operators who know how to use the software correctly; a power failure or an untrained operator can interrupt work or introduce errors in a way a paper register cannot.

3. Vulnerability of electronic data. Data stored only electronically can be accidentally deleted, lost through hardware failure, or accessed by someone not authorised to see it, unless the business follows proper security practices such as passwords, user-level access and regular backups. …