The use of a computer as part of a bookkeeping function offers great benefits over manual bookkeeping system especially for growing businesses with high volume of business transactions. The advantages of computerized bookkeeping system are discussed below.
Computer can perform arithmetic check in seconds and it can carry out procedure as set by a particular software, for example, using bookkeeping software like Sage or Quickbook, when a bank payment is entered, it will automatically update the bank account and post the entry to relevant expense ledger specified by you. This greatly reduces the likelihood of errors occurring in the bookkeeping process and accuracy is improved.
Computer can store large amount of data compared to manual system and you can reuse data for one purpose for another reasons. For example, data used for generating sales invoices and be processed for marketing analysis.
Flexible access to data, the computer offers the user more flexible access to the data by helping them to look at it in different ways, to output it in different forms and formats and to use it as input to other reports.
Traceable history, the computer will keep an accurate listing of all the actions it has performed so that they can be retraced easily. This is useful when looking to correct errors or to check the accounts are accurate. If your business needs to be reviewed, or audited, this audit trail will be very important as evidence of how the bookkeeping has been performed.
Canterbury Accountancy - Information for small businesses and companies
