Know these limitations of computerized accounting system

Know these limitations of computerized accounting system

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Created By Admin Last Updated Tue, 08-Dec-2020

This is a fact that if a thing has some benefits and advantages, it might have disadvantages and limitations too. Though technology and computers provide many advantages to the accounting field as making the work easier and more accurate than manual methods, it came along with some limitations. In this blog, we are going to discuss those limitations with you.

Limitations of CA’S: -

Ø  The the very first limitation that the computerized system in accounting comes with is that it brings disruption in the work. The existing, manual process of work shifted and interrupted by the digital work. Hence it brings the changes in the working environment and takes the time of accountants to understand and comfortable with it.

Ø  As the technology makes improvement the unemployment in the country increases with a drastic rate. On the introduction of the computerized accounting system, the employees feel insecure that their place may be taken up by computers as they are more accurate and faster to work with.

Ø   The computer system needs to be updated with time to time. The need to replace the hardware and update their software with the newer version might be costly and their availability can be challenging.

Ø  There is a need to train the staff of the company working on the computerized systems so that they can work on with the newer versions of software and hardware. This might be costly as the training of employees needs to be constant.

Ø  As a machine, the danger of crashing of the system due to any failure in hardware is there which brings more headache and interruption in work. In case of no backups, a serious problem has to face by the employee. This brings the disturbance and can be proven more cost consuming as the system needs repairing.

Ø  The uploaded or anticipated errors are the only one that computers can find. Computers can’t understand those errors which are not uploaded in the software. Hence here bring the chances of errors in financial statements or reports.

Ø  The a cyber attack can be more seen with the digitalization process. Any mistake can lead to a serious problem and can be a reason of big concern for the organization’s security.

CONCLUSION- We can find computers costlier that overweigh its advantages in the accounting system. Apart from having additional benefits over manually accounting system, the pitfalls can lead to loss regarding disruption in work etc. One should not underestimate the benefits of having a skilled human operator who can understand accounting better than computer systems and prove to be better than computers in the accounting field.