Computerized Accounting Versus Manual Accounting

Very important aspect in a business is accounting. It is mandatory to record the income and expenses in detail. It depends on the individual companies as to how they want to record their transactions, manually or computerized.

Accounting for every company is mandatory and it is generally accepted that companies should reveal certain financial and management information to the management and public as it is vital decision making process.

Manual accounting requires an accountant to record the transactions to the Journal, general ledger. These transactions are recorded individually either in the books or in the excel sheets.

Computerized accounting system allows the accountant to pass the transactions in the accounting package wherein all the relevant ledgers are updated. Unlike going through each ledger to prepare financial reports in the manual accounting system, the computerized accounting system automatically provides the required reports with just a click on the required report.


Manual accounting is time consuming in comparison to the computerized accounting. Once the data is passed in the computerized accounting system, generating reports is much easier than manual reports.


The possibility of errors is greater when the transactions are made in manual accounting, but in computerized accounting the accuracy is higher.


When you require complex reports, it is time consuming to extract manually whereas computerized accounting helps in getting all kinds of reports and in less time compared to the manual accounting. The reports in the computerized accounting are automatically updated and instantly available.

Each time management wants reports from different dates and in different formats it would be time consuming to generate manually whereas in computerized accounting system it would be easy to generate as and when required and in whichever format.

Considering the facts discussed above it is left to the individual companies to decide on having a manual way of accounting or the computerized accounting.



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