The manual accounting system offers a traditionally conservative accounting system. A manual accounting system entails manual recording, processing and presentation of financial transactions by a professional accountant with the aid of account books, registers, vouchers and other accounting resources. On the other hand, computerized accounting offers a more convenient, accurate and fast accounting system than feasible with a manual system. Nevertheless, both computerized and manual accounting systems exploit conservative presentations, principles and accounting concepts, albeit for their differences in their mechanism. In particular, whereas manual accounting systems exploits pen and papers to document financial transactions, computerized systems of accounting exploit the internet and computers to electronically record transactions (Henry, 2009) . This presentation recommends a hybrid of a manual and computerized accounting system for an integrative and synergistic exploitation of the conservative approach of manual accounting system as well as the competence of computerized accounting.
Several factors determine the choice of a particular accounting system, including reliability, simplicity, speed and transparency. For instance a computerized accounting is more suitable for quick accounting needs compared unlike the relatively slower manual accounting system. Although data entry time is comparable for a manual and computerized system, a computerized system cuts a great deal of time when analyzing results. Furthermore, a computerized system allows fast alteration of parameters with just a simple click and selection of alternatives as opposed to the tedious and the painstaking addition of columns in a manual system. Nevertheless, computerized systems are equally vulnerable to slow down due to glitches and bugs. Similarly, while manual system is relatively slower than computerized system the time required for results generation is more predictable.
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Computerized accounting systems offer a considerable lower accounting cost than costs incurred in manual accounting systems. Small and medium sized enterprises (SMEs) can readily purchase cheap computerized accounting systems on the counter or shelf at cheap prices. Such low cost on-shelf/counter computerized accounting programs gives managers “real-time” financial position of the company, which enable them to adjust business strategy appropriately with considerable cost and revenue benefit outcomes. Similarly, latest state-of-the art accounting programs offers “real-time” reports on profit, stock assessment and losses as well as reports on payroll, customer accounts and sales evaluation, which allow a timely review of business strategy. Furthermore, computerized system requires single data entry, which is then distributed to all relevant departments.
The efficiency benefits of computerized accounting systems come at a cost. Such cost includes investment in data protection methods against malicious attacks and power backups in the case of power failure (Bansah, 2018) . Like in manual accounting, computerized systems are similarly prone to fraud. Wrong entry or security breach of data can also turn the entire system on its head due to dependence on a single data source.
As reviewed from the analyses of the contextual suitability of the various accounting system, the conservative benefits of a manual accounting system makes it ideal for use in storage of physical receipts to handwritten journal entries. On the other hand, the efficiency and speed of a computerized accounting system makes it ideal for use in electronic cash register and maintenance of a comprehensive digital accounting system for the entire organization as well as in financial reporting, income tax processing, audit and word processing. Other applications of computerized systems include graphic software for graphical representation of financial reports and statements data, image processing, electronic data interchange, and electronic funds transfer.
References
Bansah, E. A. (2018). The threats of using computerized accounting information systems in the banking industry. Journal Of Accounting And Management Information Systems, 17 (3), 440-461.
Henry, L. (2009). Manual versus Computerized Practice Sets in Accounting: The Students Perspective. Journal of Education for Business, 65 (3), 106-109.
