Computerised Accounting

Question 1

Give 3 advantages of computerised systems for recording accounting data compared to manual methods

Answer 1

accuracy and reduced errors:
Minimise human error
Identify errors quicker

Speed and efficiency:
Transactions processed faster
Financial reports can be generated instantly

Can handle large volumes of transactions without increasing workload

Cost effective in long-term:
Reduced need for paperwork and storage space
Saves time on labour

Real-time financial monitoring:
Can track financial trends in real time = quicker decision making

Secure data:
Digital records reduce risk of physical loss or damage e.g. fire, theft

Question 2

Give 3 disadvantages of computerised systems for recording accounting data compared to manual methods

Answer 2

High initial costs:
Purchasing software, hardware, training staff
Ongoing maintenance and updating costs

Risk of cybersecurity threat:
Digital record vulnerable to hacking, malware etc

Potential data loss:
backups not maintained properly = risk losing important financial records