Computerized Accounting Systems

Versus
Manual Accounting Systems

Author: Joan Milton-Cedan

GB512-Bussiness Communication
Professor Carolyn Edwards
June 17, 2014
 Introduction

 Benefit of integrating your manual accounting system with a computerized

accounting system
 Chart that shows the comparison of five computerized software
 Discuss the pros and cons of computerized accounting system over manual
accounting system
 Implementation of a computerized accounting system
 Recommendation
 Advantages of a Computerized Accounting Systems

More efficient calculation functions

Free time for clients one on one

Quick access to accounting information

More time to use for marketing and promoting

Increases productivity of staff

Information available in real-time

Improves cash flow

Information updated automatically

 Advantages of Manual Accounting Systems

Cost saving

No crashes or computer glitches

Daily attention to accounting task

Gives a better account of the ins and outs of the accounting process
 Disadvantages of a Computerized Accounting Systems
Some software’s are expensive

Computers crash and causes information loss

Security breaches

Staff becomes dependent on computer and forgets the manual process

Downtime for productivity during training

Software upgrade cost

Power failure

Viruses

Computer fraud
Disadvantages of a Manual Accounting Systems

Tedious work such as adding columns accurately, verify your work and
actually write in numbers

Gives the chances of manipulating financial information because of the

gathering process used

Time consuming

Errors increases significantly

No backup capability

 Consider This

 Ease the fear of client about computer use

 Using computerized accounting system makes work easier for both client and their
bookkeeper

 By using both systems it maximizes accuracy

 Productivity increases and payroll decreases

 Business information in given in real-time an advantage when making business

decisions
 Computerized Software
Companies
Companies Name
Cost Features
Intuit QuickBooks Starts at $12.95/mo. or Accounts payable & receivable, payroll, invoicing and
www.intuit.com billing, general ledger, time and expense management,
$249.95/license
reporting and analytics, SaaS platform, and multi-
currency.
Xero Accounts payable & receivable, payroll, invoicing and
www.xero.com Starts at $9.00/mo. billing, general ledger, time and expense management,
reporting and analytics, SaaS platform, and multi-
currency.
Microsoft Dynamics Starts at $178 per Reporting and analytics, general ledger, payroll, multi-
GP mo. per user currency, accounts payable and receivable, invoicing
www.microsoft.com and billing, and on-premise platform.
NetSuite ERP Accounts payable & receivable, payroll, invoicing and
& Small Business Starts at $399/mo. billing, general ledger, time and expense management,
www.netsuite.com reporting and analytics, SaaS platform, and multi-
currency.
Sage 50 Starts at $279 for Payroll, multi-currency, accounts payable and
na.sage.com 1-user license receivable, reporting and analytics, general ledger,
invoicing and billing, and on-premise platform.
Steps Used to Replace Manual with a Computerized System

Obtain software
Perform a software test
Training
Install new software

Converted
To
 Why a Change is Needed at the Davis Street Clinic

 Hand written fee notes causes errors

 Hand writing changes which causes confusion in what is interpreted

 Lost or misfiled fee notes

 Loss of revenue

 Productivity loss

 Research takes away from patients needs

 Too much human error

 Clients’ Revenue Comparison

Comparison of Revenue from 2012 to 2013

7

0
Jack's Auto Repairs Wayne's Auto Detail Washington's Home Healthcare The Davis Street Clinic

2012 2013
 Recommendation

 Implement a computerized accounting system such as Intuit QuickBooks

 Whatever software chosen should be compatible to your manual system in use

 Software must be easily integrated with the manual system in use

 Use both manual and computerized to generate information for reports

 Can make a business more competitive

 Can cause increases in profit margin

 Conclusion
 In a manual system spreadsheets are used to input information

 Errors are made easily

 Spreadsheets are a vital tool the manual process

 Companies that uses manual depends on the information generate to be accurate

 When errors are made, it is time consuming to research

 Computerized causes less time to research because it is compact

 References

Consul, J. (2014, Winter). Bring sales compensation into light. Financial Executive, 30(1), p. 17-

19, 3p. Kaplan University Database.

Danciu, R., & Deac, M. (2012). Changes caused by computerization in accounting

Management. Annals of the University of Oradea, Economic Science Series, 21(2), 655-

661.Retrieved from http://eds.b.ebscohost.com.lib.kaplan.edu/eds/pdfviewer/pdfviewer?vid=2&sid=b06dcdb0-1836-47b6-b9cf-

191b2dfb135f%40sessionmgr115&hid=106

Sylvan, R. (2014). How to replace manual accounting information systems with electronic
systems. Retrieved from http://smallbusiness.chron.com/replace-manual-accounting-

information-systems-electronic-systems-44735.html
Top 15 accounting software. (2014). Retrieved from

http://www.compareaccounting.com/top-10-accounting-software-vendors-
v4.php?confirm=1
Weber, M. (2014). Manual accounting versus computerized accounting. Retrieved from

https://www.experience.com/alumnus/article?channel_id=accounting&source_page=brea king_in&article_id=article_1173385201144