Unit 8 - Accounting Systems P3 explain the benefits of using a computerised accounting system
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Unit 8 - Accounting Systems
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BTEC Level 3 National Business Student Book 2
Unit 8 - Accounting Systems P3 explain the benefits of using a computerised accounting system. BTEC business level 3 extended diploma. Please leave a review if you found this useful, thank you!
unit 8 p3 explain the benefits of using a computerised accounting system
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Unit 8 - Accounting Systems
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Sadia Hussain Unit 8
The benefits of using a computerised accounting system - P3
“Computerized accounting is carried out via computerized accounting software
and computers in the recording, analysis and storage of financial and
accounting data. With all manner of systems available today, small businesses
and anyone else can actually find the computerized accounting system that
matches their individual characteristics.” Some companies prefer carrying out
bookkeeping by hand, but it is much more efficient for larger companies to use
a computerised accounting system, as they have far too many transactions to
be able to record them with pen and paper.
A computerized accounting system allows companies to set up accounts such
as income and expenses, sales income and cost of sales, it is used to report the
financial data. Companies use the computerised accounting system in many
different ways such as by using software programmes, or by using the internet.
One advantage of computerised accounting system for Style Clothing is that it
helps to save time, the functions that computerized accounting involves,
allows for a much faster accounting process, it allows the user to carry out
different functions at once, they can easily enter data using just a few buttons.
“Statements and reports can be generated instantly at the click of a button.
Managers do not have to wait for hours, even days, to lay their hands on an
important report.”
Small business owners can benefit from this quite a lot, as they do not have
separate employees that carry out the financial side of the business, the
manager themselves have to do the accounting and they also have many other
responsibilities they have to carry out, so time is the most important thing to
them, which is why computerised accounting is beneficial to small businesses
as it is much quicker to enter data.
Another benefit of computerised accounting is the physical space,
computerised accounting is carried out on one computer so it does not involve
documents, papers and another physical resource that manual bookkeeping
would involve, which means that computerised accounting gives a much
cleaner space for offices for Style Clothing as all the financial data is stored in
the computer instead of files.
A clean physical space allows for managers and employees to be more
accurate and avoid any confusion and mistakes. Another advantage of
computerised accounting is that it is secure because all the financial data is
stored in one device or programme and is less likely to be stolen, lost or
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