A computerized accounting system is a automated accounting system where the use of computer technology is used to manage the accounting processes of a business. A computerized accounting system is a great help in increasing the productivity of a business along with streamlining the complex processes. It also helps in eliminating the data redundancy, duplication of information and helps in minimizing the accounting errors.
The major competency of a computerized accounting system is that of its speed as it is much more speedy and efficient as compared to a manual accounting system. Computerized accounting system has an easy to use interface that helps you enter accounting data, export and import data to various accounting forms and apply different validation processes on the data. At the back end of every computerized accounting system there is a database that maintains the records of all the transactions and the records of all the entities of the business.
However one thing that may disturb a business while switching from the manual accounting system to the computerized accounting system is the cost of the system that is quite high as compared to the manual accounting system. If you are running a small or medium business you can buy an off the shelf computerized accounting system for your business. However if you owe a large business with complex transactions you can build a customize computer software for your business. Other key features of a computerized software system are the production financial documents automatically, keeping the information up to date, ready availability of information and almost hundred percent accuracy of data.
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