Benefits Of Using A Computerized Accounting System

Introduction Anita, an independent CPA, and accounting software consultant, has several clients in her practice located in Louisville, Kentucky. XYZ Company has used the same journal and ledger manual system for more than twenty years. On the other hand, other small, medium and large business clients prefer an automated accounting system because of the advantages. In the end, independent accountants serve multiple types and sized businesses. Which accounting system is the best in a public accounting (CPA) environment; computerized, manual or both? In the book â€Å"Financial Accounting†, authors Duchac, Reeve, and Warren (2014) write: â€Å"The computer prevents transactions in which the total debits do not equal the total credits.† In this basic entry, the software will notify the user an error has occurred; then the correction can be made immediately. This is one of the many advantages of using a computerized accounting system. However, what’s on the mi nds of most small business owners, and, managers of medium to large operations; is what is working now. Many users of manual systems get accustomed to their own method of accounting and resist change to something new. As a result of this kind of thinking, the independent accountant must be flexible enough to handle the demands of the client. Automated vs. Manual Systems Many small businesses continue to use their own form of accounting including keeping receipts in bags and boxes, etc. They argue that what has paid theShow MoreRelatedComputerized vs. Manual Accounting1630 Words   |  7 PagesFor : Mr. Nelson Title: | Computerized Accounting should completely replaces Manual AccountingPrepared By : Ali H. Al-MuslimID#: 200628620Section# : 05SN#: 02Group#:01Word Count:1,333 | 10/7/2012 10/7/2012 Table of Contents Table of Contents II Introduction 3 I. Manual Accounting 4 A. Benefits 4 1. Cost effective 4 2. Availability 4 B. Limitations 4 1. Finding Errors 4 2. 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