Uploaded by: Olekwu Peter Michael
NAME: OLEKWU PETER MICHAEL
MATRIC NUMBER: 15/33810/UE
COUSRE: B.SC. AGRIBUSINESS MANAGEMENT
COURSE CODE: ACC101
MANUAL ACCOUNTING SYSTEM
This involve the procedures of recording, classifying, analyzing, reporting and communicating financial data of an organization using manual method (paper and pencil) to enable users make decisions while computerize accounting system of the procedure of recording, classifying, summarizing, reporting and communicating financial data of an organization using computer to enable users make decisions
The four differences between manual and computerized accounting is as follows:
The main difference between manual and computerized systems is speed. Accounting software processes data and creates reports much faster than manual systems. Calculations are done automatically in software programs, minimizing errors and increasing efficiency. Once data is input, you can create reports literally by pressing a button in a computerized system.
Another difference between manual and computerized systems is cost. Manual accounting with paper and pencil is much cheaper than a computerized system, which requires a machine and software. Other expenses associated with accounting software include training and program maintenance. Expenses can add up fast with costs for printers, paper, ink and other supplies.
A third difference between manual and computerized systems is the ease of backup of a computerized system. All transactions can be saved and backed up, in case of fire or other mishap. You cannot do this with paper records, unless you make copies of all pages--a long and inefficient process.
In manual accounting, all calculation of adding and subtracting are done manually. For example, we find the balance of any ledger account. We will calculate the debit and credit side and then we will find its difference for showing balance. In computerized accounting, our duty is to record the transactions manually in the database. All the calculations are done by computer system. We need not to calculate each account's balance, it is calculated automatically by computerized accounting system