Sunday, 31 March 2013

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)