Features, Importance and Limitations of Computerised Accounting? - Compuinfohub

 Features of Computerised Accounting

Fast, powerful, simple and Integrated Data :

Computerised Accounting System is designed to automate and integrate all the business operations, such as purchase, sales, finance, inventory and manufacturing with computerised accounting combines with enhanced MIS. Multi lingual Data organisation capabilities to support the company. Simplify all the business processes easily coast-effectively.

Complete visibility : 

Computerised accounting system gives the company sufficient time to plan, increases the customer base, and enhance customer satisfaction. With computerised accounting system the company will have greater transparency into the day to day business operations and access to viral information.

Enhanced User Experience : 

Computerised accounting system allows the company to enter data in various ways which makes work a pleasure by adapting to the specific business/organisation.

Accuracy, speed : 

Computerised accounting system has user-definable templates which provides fast, accurate data entry of the transactions thereafter all documents and reports can be generated automatically, at the press of a button.

The importance of Computerised Account System

Computer is an important part of an accounting system. Computerized accounting systems are important to business in various ways. The use of computers is time-saving for business and all financial information for business is well-organized.

Time and Cost Savings : 

Using a computerised accounting system saves companies time and money. The use of a computer makes inputting accounting information simple. Business transactions are entered into the system and the system posts transactions accordingly.

Organization : 

A computerised accounting system help business to stay organized. When information is entered into the system, it makes finding the information easy. Employees can see any financial information whenever it is needed. 

Storage : 

Storing information is vital to a business. After information is entered into the system, the information is stored indefinitely. Companies perform backups on the system regularly to avoid losing any information. 

Distribution : 

Computerised accounting system allow companies to distribute financial information easily. Financial statements are printed directly from the system and are distributed internally and externally to those needing the information.

Management Reports : 

Data within the Computerised accounting system is accurate and up to date. Management can request online report in real-time and that make management decisions more reliable and timely.

Regulatory Compliance : 

Reports are required on a regular basis from various government agencies. A computer system can organize their data and reports to comply with these statutory requirements, saving time.

Limitations of Computerised Accounting System :

Human Errors : 

The old saying, "trash in, trash out" applies to computerised accounting systems. Human errors can occur at all levels within a system, from programming to user errors. A system could be set up incorrectly, with an account reporting in the wrong report. A user could also enter enormous numbers or employ wrong accounts. Because of human errors, a new system implementation should undergo rigorous testing before it goes live, and comprehensive training should be provided to user to minimize errors. 

Costs : 

Accounting systems coasts have decreased substantially, but they still can be costly, not only to purchase, but to maintain them as well. Extra coast for training new employees in the system should be considered along with ongoing customer service. Charges for customizing reports and other processes can pose limitations on small and medium-sized business that cannot afford these services. Other program costs to be considered include new version upgrades and even hardware that may be required as technology progresses. If business can't afford these costs, they will be left behind. 

Security : 

System security concerns can pose limitations on accounting software. Besides worrying about viruses and worms, small-business owners also should be concerned with unauthorised access of computerised accounting data. Users ID and passwords are common minimum security measures businesses can use to protect the accounting software against intrusion, but they may not be enough. According to Kiplinger magazine, hacking is very common with small business however, only one in five small firms owns antivirus software and over half don't use wireless connections. 

Other Considerations : 

When dealing with accounting programs, you should consider electrical power as a major limitations of the system. Without electricity, most small-business accounting systems are useless-no data can be inserted or reports generated. Any electrical fluctuation can have a negative impact on accounting data, deleting information and creating confusion. Another consideration that limits the usage of accounting systems is the network where the program may reside if the computer network is not properly set up, the software cannot be accessed and  cannot be utilized.