Computerised Accounting

Question 1

Give 4 advantages of computerised systems for recording accounting data compared to manual methods

Answer 1

accuracy and reduced errors:
Minimise human error
Identify errors quicker

Speed and efficiency:
Transactions processed faster
Financial reports can be generated instantly

Can handle large volumes of transactions without increasing workload

Cost effective in long-term:
Reduced need for paperwork and storage space
Saves time on labour

Real-time financial monitoring:
Can track financial trends in real time = quicker decision making

Secure data:
Digital records reduce risk of physical loss or damage e.g. fire, theft

more organised

data available to multiple ppl at the same time

legibility:
Easier to read - manual can be difficult to read ppls handwriting

Staff motivation; investing into their careers with computerised system = improved career prospects & feel valued

Question 2

Give 3 disadvantages of computerised systems for recording accounting data compared to manual methods

Answer 2

High costs:
High initial cost - Source of finance to fund initial investment?
Purchasing software, hardware, antivirus
training staff
Ongoing maintenance and updating costs

Risk of cybersecurity threat:
Digital record vulnerable to hacking, malware etc
Viruses = data corruption

Potential data loss:
backups not maintained properly = risk losing important financial records
Need to back up on a regular basis

Eye strain, back problems, wrist issues (RSI) - welfare of staff (health & safety)

Resistance/Reluctance of staff:
Preference of manual
Don’t want to change
Fear of losing job

Partnership = disagreements = breakdown of partnership

Question 3

How does computerised accounting systems make stock control more effective

Answer 3

• real-time tracking/ up-to-date inventory levels
• automatic reordering
• less chance of (human) errors

Question 4

How should you structure a computerised accounting 25 marker

Answer 4

intro

Paragraph 1:
Discuss a potential benefit/function
Limitation/evaluate

Paragraph 2:
Discuss a potential benefit/function
Limitation/evaluate

Paragraph 3:
Discuss a potential benefit/function
Limitation/evaluate

Paragraph 4:
Discuss a potential benefit/function
Limitation/evaluate

Paragraph 5:
Financial implications

Paragraph 6:
Overall disadvantages

Paragraph 7:
Conclusion; answer with summmary/evidence of points , suggestion for potential problems