Question

In your own words, describe the benefits of computerized accounting to an organization. What features in QuickBooks will aid an organization in its accounting and decision-making process? What differentiates manual and computerized accounting systems?

Answer 1

The Benefits of Computerized accounting to an organization are as follows-

1) Single entry point- All records are entered only once and it gets automatically updated in its respective places.

2) Accuracy- The amounts once entered correctly, gets accurately posted in all its respective ledgers.

3) Financial Analysis- Financial Statements are prepared quickly and upto the date requisitioned. It helps in analyzing day to day cash flows, etc.

4) Comparison- It helps in budget preparation and comparison of results with different accounting periods or firms.