Manual Vs Accounting Software , Which One Is The Best? Before we know which one is the answer, we should see and know the differeces between both.
Accounting is vital to any business success. All businesses must record their income and expenses precisely and properly because they have to reveal the financial and management information to the government or related party. Besides, it is also as a tool to make a business decision.
The advanced technology has encouraged the development of computer software that makes accounting much more easier than ever. Basically, there is two system generally applied in preparing a financial report, manual and implementing accounting software:
The manual system implies that staff performs the accounting cycle manually on a periodic basis, such as calculate trial balance, journal transactions, prepare financial statements and others tasks. While accounting software focuses on the software program that automatically updates the account when the transaction entered.
There are some differences between manual accounting and using software:
- Financial statement record. In manual, it requires manual calculation, put it in the paper, then post it on a ledger. The accounting software will perform the calculation through the internal data when the information entered.
- Manual accounting calculation will take more time since it takes step by step. A large amount of data may cause the miscalculation or mistype. The accounting software will process the data automatically and perform the more accurate calculation.
- File backup. In the manual financial record, looking for some reference documents could be tiring because there is various reference document. By using software, owners or staff only need one click to find the stored financial data.
- Classifying accounting statements: In the manual, the transaction should be recorded in the books of original entry before creating a ledger. While in using software, it will be automatically classified.
- Accuracy. Manual accounting records require carefully and highly competent staff to perform the financial report precisely. Implementing accounting software, the financial accuracy is based on the correct data you have and software performance.
- Accounting software offers faster and simpler data recording into the computer. It provides accurate calculations, various reports in a minute, and better internal control. However, it also takes much time, resources, and effort to implement it.
Manual and software can create an accurate financial report as long as the proper procedures applied. Accounting software such as Zahir Accounting is very effective for owners who decide accounting software implementation. Accounting software provides the benefit of speed.
