SSC CGL Exam > SSC CGL Videos > SSC CGL Tier 2 - Study Material, Online Tests, Previous Year > Comparison between Manual and Computerised Accounting System
Comparison between Manual and Computerised Accounting System Video Lecture | SSC CGL Tier 2 - Study Material, Online Tests, Previous Year
FAQs on Comparison between Manual and Computerised Accounting System Video Lecture - SSC CGL Tier 2 - Study Material, Online Tests, Previous Year
| 1. What is the difference between manual and computerized accounting systems? |  |
Ans. The main difference between manual and computerized accounting systems is the way in which financial transactions are recorded and processed. In a manual system, all transactions are recorded by hand in journals and ledgers, while in a computerized system, transactions are entered into a computer program or software and processed automatically.
| 2. What are the advantages of using a computerized accounting system? | |
Ans. There are several advantages of using a computerized accounting system. Firstly, it can save time as transactions can be entered and processed much faster compared to manual systems. Additionally, it reduces the risk of errors as calculations are automated, and it provides real-time access to financial information. Moreover, it allows for easier analysis and reporting of financial data.
| 3. What are the disadvantages of using a computerized accounting system? | |
Ans. Although computerized accounting systems offer many benefits, they also have some disadvantages. One major disadvantage is the initial cost of purchasing and setting up the software and hardware required for the system. Additionally, there may be a learning curve for employees who are not familiar with the software. Moreover, reliance on technology can also lead to the risk of system failures or data loss.
| 4. What are the advantages of using a manual accounting system? | |
Ans. While computerized accounting systems have become more popular, manual accounting systems still have some advantages. One advantage is the lower cost, as there is no need to invest in expensive software or hardware. Additionally, manual systems provide a more tangible and physical record of transactions, which can be beneficial for certain businesses. Moreover, manual systems may be simpler and easier for small businesses with fewer transactions.
| 5. Can a business switch from a manual to a computerized accounting system? | |
Ans. Yes, a business can switch from a manual to a computerized accounting system. However, it requires careful planning and implementation. The process may involve data conversion, training employees on the new software, and ensuring a smooth transition of financial records. It is essential to consider the specific needs and requirements of the business before making the switch to ensure a successful transition.
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