What is the meaning of computerized accounting?

As the name says ‘computerised accounting’ is the use of computers, software, and hardware to process financial transactions and events and produce accounting reports:  

A computerized accounting system (CAS) automates financial records and reporting processes of financial transactions and events and produce reports based on user requirements. The process of financial transactions done through the computer system is faster, more accurate, and easier to manage. They are also less error-prone than manual accounting and automate the accounting process, which improves efficiency and reduces costs.

Advantages of Comuterised accounting:

• The process of Computerised accounting is much faster, more reliable, and easy. Using Computerized accounting software in financial transactions, all data is maintained systematically and accurately.
• The margin of error is very low and the transactions are precisely recorded.
• The information stored on the computer is reliable and can be sent digitally anywhere in a fraction of a second using the internet.
• Any changes can be performed easily as it’s easy to edit things in a computer system and doesn’t have to redo the whole work again.
• As the process is based on accounting software, the preparation of the Trial Balance is produced automatically and is accurate.
• Since documents are digitally stored, it does not require a large area to store records and ledgers as in the case of manual accounting.

Disadvantages:

• In computerized accounting systems, cyberattacks can be used to steal the organization’s data unless it is strongly secured using advanced anti-hacking software. Editable:
• Computers may often face technical problems, like software freezing, system not responding, data crashes, etc., if proper maintenance is not done.
• Online or external backup is always preferred to eliminate any accidental hardware crash and data loss.

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