In today's technologically-minded society, computers play an integral role in just about every aspect of business, and especially in the field of accounting. Accountants are expected to constantly be updating information on a timely basis, and the wonderful computer allows such a process.
Normal calculations that were once done with a calculator and a pen and notepad can now be done much more quickly and accurately with a spreadsheet program. Electronic spreadsheets allow one to calculate what they call "what if" numbers without screwing everything up. These spreadsheet programs also allow you to easily keep sale and inventory records as well as create graphs which can potentially predict future expenses for your business. These such programs have become vital to modern businesses and companies.
Many other accounting processes have also been simplified with the use of computers, such as Accounts Payable, Inventory Control, and also Purchasing and Receiving. Software programs involved in the Accounts Payable aspect allow one to simplify the payment handling and selection and also will check the accuracy of the vendor's invoice. The inventory control will actually track the inventory and reduce the investment in inventory. The purchasing and receiving module creates buying orders and it tracks their progress. .
From what's been mentioned above, there are obviously many benefits of computer usage in accounting. The most important would probably be the speed in which the processes are completed. Manually executing these tasks would take at least twice as long and would potentially lead to money loss.
As with anything involving computers, mistakes can easily be made if there is a problem with the software or even an operator defect. Some disadvantages to a reliance on computers include errors on data entry that the computer cannot pick up and also fraud and embezzlement. .
Overall, there are probably more pros than cons when it comes to using computers in accounting.
