Ans: Advantages/importance/positive points/features etc.
(1).Accuracy: The software automatically posts the
transactions to the respective ledger accounts. Hence there is less scope of
errors as compared to making the same entry separately into different ledgers
manually.
(2)Automatic updating; Accounting records are automatically
updated so that account balances, debtor’s and stores ledgers ,etc are always
up-to-date.
(3) Efficiency: customised data entry screen, and databases
of customer’s suppliers, and stock records, speeds up each transaction. Prompt debt collection and better inventory control improves
the efficiency of the business.
(4). Multiple
currency capability: An accounting software takes care of exchange rate changes
and allows a business organization to trade in multiple currencies
(5).Document generation: Accounting software can generate
accurate and legible documents such as invoices, credit, debit notes, purchase
orders, vouchers, payroll and pay slips etc.
(6).Management information: Complete and up –to-date
information on purchases ,sales, inventory, taxes, assets, reduce frustration
of the management who can now take crucial decisions quickly
(7).Generation of GST and VAT returns: An accounting
software can generate returns for goods and service tax (GST) and value Added
Tax(VAT).
(8).online form filling of IT returns: with up-to-date
computerized accounts, calculation of income tax becomes a breeze and the
returns can be filed over the internet.
Disadvantages/limitation of computerized accounting
(1) Power
outages can entirely stop the accounting work and access to accounting
information
(2) Computer
viruses can erase or damage vital business and accounting data
(3) Hackers
can clandestinely gain access to top secret business and accounting data if
proper care of data base security and access control is not exercised.
(4) Accuracy
of computerized output depends critically on the correctness of data entered .i.e
garbage in garbage out(GIGO)
