Why Use Computerized Accounting Systems Vs. Manual Accounting Information Systems

Historically, accounting was a manual process using paper books and documents to record financial information but the advancements in technology have created significant advances in the area of financial management and accounting software and businesses which are adopting these soft-wares are benefiting significantly as they are able to process transactions timeously, increased quality of information, increased accuracy of information, retrieve information easily for effective decision making, minimize the errors which are caused by human error including, eliminate handwriting limitations and also store data resources at minimal costs. (CIMA, 2014). .

2.7 Why use Computerized Accounting Information Systems

Over the past decades, the banking

(2005) indicated that computerization of the accounting system may lead to reduction in personnel costs, operating costs, more efficient transaction procession, better decision making and also they may lead to an improved security system which may reduce fraud

2.8 Computerized Accounting Information Systems vs Manual Accounting Information System

Accounting is an indispensable tool in business decision-making process, planning and controlling. This has led to the development of more advanced information technologies and many computer products such as software like accounting packages and various accounting database applications. From this point accounting can be divided into two basic categories: those which apply manual accounting and those which prefer computerized accounting systems. (Weber, 2011)

Whether a system is manual or computerized, accounting in itself is known to have a cycle. According to Weber (2011), the cycle has the following steps:

1. journalizing the

Time: Paper work is involved in manual accounting information systems and all the accounting activities are carried out on paper manually and it takes a lot of time and resources for any average business organization to process transactions under a manual accounting information system and this is even worse when the organization is a financial institution as financial institution heavily interact with the accounting information systems. In light of this, computerized accounting information systems save a lot of significant time as the computerized environment is highly automated and as such that those processing rely on soft wares and networks which are highly faster than manual systems. (Magdalene,