Disadvantage of Computerized Accounting

Computerized accounting is another term for accounting software, programs or applications companies use to electronically record, report and analyze financial information. These systems use the basic concepts of manual accounting systems, but in a computer style and format. While there are many advantages to computer accounting, there are also disadvantages.

Facts

Computerized accounting systems can be expensive to implement in a company. While many basic, low-cost options exist in the business environment, these systems are not practical for larger organizations. The number of users or workstations needing access to the system can also increase the implementation cost.

Features

No computer program or application is error free. Companies must budget capital for maintenance costs, technical support and upgrades. These items represent an ongoing expense for most businesses. Expanding business operations can also create higher expenses by adjusting their computerized accounting systems.

Considerations

While most accounting employees are familiar with computerized accounting systems, companies may need to spend more time training older workers or college graduates working on the computerized accounting system. The learning curve also comes into play; workers may spend more time initially working with the system and become quicker using it over time.

References

• The CPA Journal: The Changing Landscape of Computerized Accounting Systems