Compare the Benefits of Using Manual and Computerised Accounting System to Record Business Transactions free essay sample

This is easier for businesses because they don’t have to add up the contents by their self’s and it’s less likely for them to make a mistake. List auto fill allows you to automatically extend the cells, where it allows you to make new changes rather than starting again. Auto fill is another feature which allows you to quickly fill in the cells with repetitive data such as numbers and text. Auto fill can also be used to copy and paste data, where you can modify text and numbers. Auto shapes toolbar is used to create a number of geometrical shapes, arrows, flowchart, Pie, Bar, Line charts, graphs, stars and etc†¦PivotTable allow you to sum data in a short period of time allowing you to perform data analysis and generating reports like periodic financial statements, statistical reports, etc†¦another feature is that it allows businesses to analyse complex data relations graphically. Businesses that use Microsoft excel: Retailers, accountants, banks, individuals to manage their finical life. Sage Software Features: Sage is a software that allows businesses to help businesses manage their money and keep track of payments and cash flow. Sage makes sure that businesses keep up to date with their customers and share information throughout the company. The sage software allows companies whom are taking payments, either online or in person easier. Sage is a software that allows business to manage their customer contacts, resources and costs to deliver it makes sure that it provides their customers an excellent service. Sage is flexible with any business for example if you’re working in manufacturing, sage products helps you manage your components and developments. Businesses that use Sage: Accountants, flowerets, Bookkeepers, entrepreneurs, manufactures and etc†¦ Quick books Features: Quick books is a software that is easy to set up and learn to use. Quick books organize your businesses finances all under one file which is easy to locate information on. Quick books is allows businesses to easily create invoices, observe sales amp; expenses that the business is making. Quick books make sure that they get reliable records for tax time as this is a benefit for the business. Quick book also manages and stores customer, supplier, and employee information safely. Quick books allows businesses to online banking without using paper. Businesses that use it: Retailers, supermarkets, entrepreneurs, accountants, students. E. F. T. A. P. S: Electronic Funds Transfer At Point sale. Features: E. F. T. A. P. S helps people pay for good by transferring money from there bank cards to the businesses instead of using cash. E. F. T. A. P. S makes sure that the customer’s credit or debit card is read by a card reader when it’s being swiped when the customer is purchasing a product. E. F. T. A. P. S allows customers to receive request which are sent by the bank requesting them authorisation of the payment. Therefore if approval is given by the customer to the business, money from the customer’s account are transferred into the businesses account. E. F. T. A. P. S allows people not have to withdraw any money out of the bank before going shopping. E. F. T. A. P. S also prevents customers from carrying a large sum of money around with them. E. F. T. A. P. S allows you to see a statement that is clearly stating the transactions a person has made. Businesses that use it: Supermarkets, retailers, individuals and etc†¦ What’s the benefit amp; limitations of computerising? Sharing data amp; files: Computers allows businesses to communicate with other divisions anywhere around the world or even within the work place. For example all the computers in businesses are connected therefore if a person wanted to out down some information about a customer it would be saved onto all the other computer systems as well so that information can be shared. The limitations of computerising is that businesses might accidently leak data about customers to the public due to an unreliable employee, this would create problems for the business because customers and employees may frown upon this. It stores information about customers: The benefit of computers for businesses is that they have the ability to copy data and information about customers on to their system; computers are also able to distribute data and information fast. Another benefit is that computers can organise files in an order that they can find easily. However if a business was to store information on paper this would take up room and it would be hard to look through. The limitations of this is that a computer doesn’t last forever when too much data is kept on the computer the computer starts to slow down. Therefore it’s better for businesses to keep data about its customers on paper as well as computers. Processing power: Businesses can access information and data on different types of computerised methods, for example smart phones, laptop, ipad and etc†¦ all allow businesses to access information from a small device that is portable rather than sitting at a computer which could cause health risks to employees. This allows businesses to be flexible with their time. The limitations of processing power is that it could be expensive businesses don’t have a lot of money to purchase different forms of technology, when employees could just use one computer. Information could be backed up therefore nothing would be lost: Another benefit of computerising is that it allows businesses to back up data and information on it so that no data is lost in the process. The limitations of this is that computers can’t be trusted because the computer might not back up data correctly therefore data would be lost, of the film may not open because it wasn’t saved correctly. What’s the benefit amp; limitations of manual system? Cost: The benefit of manual system is the cost saving money. Where computerising software’s can be expensive. Businesses can save money by doing work on paper, for example if a business’s wants to work out all their profit amp; loss, balance sheets, budgets all in all they could work out accounting in a paper ledger. If the businesses does the work themselves, they would be able to save the cost of paying an accountant. The limitations of this is that some businesses don’t have time to do work by hand because it takes a lot of time. Therefore they would hire an accountant to do that work which could be really expansive. Managing time: The limitations of manual system is that it’s time consuming. By not having a computer the business must categorizing and total figures, by themselves without the usage of a computer. Therefore it takes a lot of hours to do manual system than it does with computerized systems. Managing time for manual systems doesn’t really have a benefit because it’s not beneficial for the business. Manual systems allows businesses or individuals to be away and free from computers. Managing manual systems allows you to do work from the comfort of your own home or during a bus or train travel. Allowing you to work on other things within your work place. Businesses also don’t have to watch out for any issues with the computer such as glitches and software crashes. The limitations of manual system is that you have to make sure that all your work in accurate and double-check your work because you are not able to just correct it like you would if you were using computers. You would also have to physically write in numbers. Another limitation is that manual system is long and boring than computerized accounting which is faster. The benefit of using manual system is that the accounting that the person is writing out keeps fresh in the person’s mind, rather than relying on a computer. For example if a businesses wanted preform a series of accounting tasks using a computer but the computer breaks down the business needs to make sure that the person knows how to perform these tasks manually rather than depending on the computer. In this assignment I have compared all the benefits of using manual and computerised accounting system to record business transactions, and I have come to the conclusion that computerised systems is better for a business to use because it allows them to perform a variety of tasks.