Computer use in Accounting

Computers in Accounting

•          Benefits of using computers

–        Faster

–        More Accurate results

–        Email Copies

–        What if scenarios

–        Easier Storage

–        Long term cost saving

–        Company looking to the future ?

–        Print multiple copies with good clarity

•          Drawbacks of using computers

–        High Capital Cost of equipment and software

–        Training costs

–        Resistance to change of systems

–        Motivational issues due to uncertainty

–        Redundancies? Will trade unions get involved which could lead to the company’s reputation suffering?

–        Computer viruses and bugs

–        Set up / installation teething problems

–        Running dual systems initially may increase complexity of task

–        Input of data to switchover

Exam Technique

•          These are a written question – watch out for whose perspective we are talking about.  Is it from staff point of view or the company?  There would be a different exam answer for each one!!!

•          This question needs to be applied to the scenario (computerised stock systems and ledgers)