Accounting Software or Manual Accounting Systems?
Posted on October 10, 2011 | No Comments
Neil Rischall asked:
When I started working as an accountant it was just at the point that personal computers where becoming more common. So I was fortunate to begin my career in accounting using manual bookkeeping systems. You are probably wondering right now about how fortunate I was. After all anyone that has tried looking for bookkeeping errors with a manual system will know that it can be quite aggravating to say the least. However there are also benefits to using a manual system. In this article I will address the benefits of both a manual and computerized system for accounting.
The biggest benefit that I encountered with a manual accounting system was that it allowed me to really understand the flow of the numbers. When using a computerized system often the computer software is doing the other side of the entry. So with a computer it can be easy to miss the concept of double entry bookkeeping. So this means that when using a manual system you often get a better feel for the numbers and how recording transactions in a particular way can effect the bottom line.
The downside of a manual system is that is it quite slow and tedious in terms of data entry. Often numbers need to be summarized and then recalculated when an error is found. And as human beings we do make mistakes. This is why experienced bookkeepers may seem slow yet if their work is correct the first time it is worth the wait.
All this being said if one uses a carbonized system you may be surprised how little time it takes to record, summarize and even reconcile to the bank statements.
As far as a computerized system the advantages are many and you probably do not need me to tell you. Information can be analyzed once inputed many ways and reconciling to the bank statement is generally faster.
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When I started working as an accountant it was just at the point that personal computers where becoming more common. So I was fortunate to begin my career in accounting using manual bookkeeping systems. You are probably wondering right now about how fortunate I was. After all anyone that has tried looking for bookkeeping errors with a manual system will know that it can be quite aggravating to say the least. However there are also benefits to using a manual system. In this article I will address the benefits of both a manual and computerized system for accounting.
The biggest benefit that I encountered with a manual accounting system was that it allowed me to really understand the flow of the numbers. When using a computerized system often the computer software is doing the other side of the entry. So with a computer it can be easy to miss the concept of double entry bookkeeping. So this means that when using a manual system you often get a better feel for the numbers and how recording transactions in a particular way can effect the bottom line.
The downside of a manual system is that is it quite slow and tedious in terms of data entry. Often numbers need to be summarized and then recalculated when an error is found. And as human beings we do make mistakes. This is why experienced bookkeepers may seem slow yet if their work is correct the first time it is worth the wait.
All this being said if one uses a carbonized system you may be surprised how little time it takes to record, summarize and even reconcile to the bank statements.
As far as a computerized system the advantages are many and you probably do not need me to tell you. Information can be analyzed once inputed many ways and reconciling to the bank statement is generally faster.
Create a video blog…instantly.