Nevertheless, manual accounts can only be prepared correctly if the accountant possesses good knowledge of bookkeeping and accounting. It is also characterised by confidentiality, which makes the sensitive information hacking free. One of the advantages of the manual accounting system is its easy accessibility. to maintain the record of the business transactions, due to lower cost. It is often used by small businessmen, such as sole proprietors, shopkeepers, etc. Manual Accounting, as the name signifies, is the paper-based accounting system, in which journal and ledger registers, vouchers, account books are used to store, classify and analyse financial transactions of an organization. It is prepared at the end of the period, or quarter. Instant trial balance is provided on daily basis. It cannot be made for rectification of errors.Įntries of transactions can be saved and backed up Only data input is required, the calculations are performed by computer system.
Recording is possible through book of original entry.ĭata content is recorded in customized database.Īll the calculation is performed manually. Manual Accounting is a system of accounting that uses physical registers and account books, for keeping financial records.Ĭomputerized Accounting is an accounting system that uses an accounting software, for recording financial transactions electronically. Content: Manual Accounting Vs Computerized Accounting
In this article, you can find the substantial differences between manual and computerized accounting.
However, they differ only in their mechanism, in the sense that manual accounting uses pen and paper, to record transactions, whereas computerized accounting makes use of computers and internet, to enter transactions electronically. Both manual and computerized system is based on the same principles, conventions and concept of accounting.
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