The advantages of Computerized Accounting seem to be unknown by business owners and individuals who are in doubt of purchasing Accounting Software. Accounting Software has been a trend nowadays. With the vast Computerized System Providers and wide range of versions to choose from, Accounting System has evolved to be one of the trends in information technology. With the advancement of latest technology in Computerized Accounting, one can question why some business owners especially in the areas of Small and Medium Enterprises remain to be reluctant when persuade to purchase Accounting Software. Is the lack of accounting knowledge the reason why these business owners are hesitant to acquire Computerized System? Why should business owners rely on Accounting Software for their Small Businesses? Is Computerized System designed only for Big Companies? Is it necessary to acquire the latest trend in Accounting Software like others do? Computerized Systems are designed to create more value in Financial Accounting. Value can be relayed in terms of speed, accuracy and reliability of accounting data. The advantages of Computerized Accounting can be classified using these values.
· Automation: Since all the calculations are handled by software, computerized accounting eliminates many of the mundane and time-consuming processes associated with manual accounting. The accountants do not have to sit for hours trying to find where the few missing cents have gone.
· Accuracy: This accounting system is designed to be accurate to the minutest detail. Once the data is entered into the system, all the calculations, including additions and subtractions, are done by software. These days, accounting packages are so accurate that they never make any mistakes.
· Reliability: Because the calculations are so accurate, the financial statements prepared by computers are highly reliable. Having been generated by software, the statements are unbiased. Thus, financial statements and reports generated by a computer accounting system can be trusted in the making of every management decision.
· Speed: This makes the entire accounting process fast and painless. Statements and reports can be generated instantly at the click of mouse. Managers do not have to wait for hours, even days, to lay their hands on an important report. Payrolls can be processed on time so that there are no delays in salary payments.
· Security: The latest copies of data can be saved and stored in offside locations so they are safe from natural and man made disasters like earthquakes, fires, flood, arson and terrorist attacks. In case of a disaster, the system can be quickly restored.
· Information sharing: Computerized accounting makes it easier for different departments of an organization to share financial information. The statements and reports can be sent by email or accessed by other means instantly.
· Cost-effective: Using this system, a single accountant can smoothly handle the tasks that would need several accountants to accomplish manually. Because most of the functions are automated, it doesn’t require accountants to work overtime. This makes the system highly cost-effective in the long term.