The Evolution of Computerized Accounting

Computers have automated tasks and reduced errors for standard accounting.

Accurate accounting has been enhanced by the use of computers. As computers have evolved, so has the application of accounting. In addition to accurate aggregations of numbers, enhancements in procedures used in accounting can be automated with computers on data that is persistent.

Computers Provide Accuracy in Accounting

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Computerized accounting helped reduce common human errors in rote summations and other calculations through lengthy lists of numbers. Anyone who has manually balanced a checkbook knows that errors tend to appear in direct proportion to the length of the list of transactions. Accurate accounting had previously benefited when adding machines were introduced prior to computers for this reason.

Computers Provide Persistence of Data

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Computer accounting provided for the persistence and reuse of data. Lists of numbers could be added to, corrected and otherwise maintained over time because the data was now stored in permanent computer files.

Computers Provide for Automation in Accounting

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Accounting benefits by being able to program procedures with computers. Reports of different types can be run on the same persistent data using reusable procedures. Over time, ever more complex procedures have been abstracted

Manual And Computerized Accounting

It's a well known fact of how much, over the years, manual accounting has evolved: Nothing. There is a critical difference between manual accounting and computerized accounting which just can't be measured by simple scales, since for decades the traditional accounting has been the same and computerized accounting has evolved in large leaps. In a little manual accounting Vs computerized accounting kind of perspective, what kind of benefits does manual accounting really has? True that the human factor will be stronger, and this may be great if you need to have a stronger presence face to clients who surely want to be answered quickly and talk with people who can talk with people, rather than accountants who can only talk with machines. Of course, this sort of staff is more prone to errors than those who rely more heavily on computerized systems. It can be argued that there are disadvantages with the current computerized accounting in existence. Computer systems are prone to damage like hardware malfunctions, virus, etcetera, plus the data can be far more easily tampered with than the one written on hard media, like paper records. Additionally, you need specialized personnel to handle these systems. In the relatively long history of computerized accounting, evolution took place at a parallel pace with the evolution of the computer itself. As machines gained more processing power and more storage power, they were able to be used to store larger amounts of information, which for accounting is essential, but, on top of that, they gained more processing power. Now you are capable with just a few samples of data inserted into a spreadsheet to have whole

salary sheets for an entire company produced in minutes. This is the difference between manual and computerized accounting, it's how in one case you may have the human presence to interact with other people, but you'll have to sacrifice efficiency and money. Computers can do the same job for less pay, so to call it, and create a more efficient corporation. Small companies may fare well without the heavy assistance of computers, which may allow working with traditional accounting. If a large company however wants to survive, it simply cannot rely on a large accounting department, as errors are bound to happen and at some point that will be more critical than what you'd otherwise expect.