Here are some of the useful information about the advantage and disadvantages of using a computerized accounting system for the small businesses. Accounting services Singapore for small businesses are often facing a lot of trouble when using an accounting software or system that will provide accurate financial reports. They will be often left with two choices, either they can use manual procedure in generating financial reports or rely on using a computerized accounting system. However, owners should keep in mind that these accounting or bookkeeping procedures often come with pros and cons.
One of the most essential benefits that a computerized accounting system can provide is that an accountant or owner can save time in generating financial reports. Functions for calculations for payroll and billing can be executed in just a matter of time, which is also designed for small businesses. Accountants can access the records in a file saved in the computer, rather than looking through stacks of paper. This is truly an advantage for the accountants because they can spend more of their time working with the business owners or clients while performing some of the marketing functions in order to improve the business strategy.
This accounting software is also known to reduce financial report errors. Compared to the manual approach, there is a bigger room for human error especially when it comes to calculations. Using computerized accounting software can also help businesses in avoiding tax errors which can catch attention of the internal revenue department.
Common disadvantage of using accounting software will create a dependence on machinery. It is known that machines like computers can fail in some time. Files and records stored in its memory can crash and will leave you unproductive in performing your accounting tasks. Worst of all is that you may loss all the necessary information if these files are left not properly backed up. If your accounting staffs have little of knowledge in accounting then they end relying on the computerized accounting software to do all the necessary work. In some companies and accounting firm, security breaches would often result in stolen or loss of accounting data.
Another disadvantage is that owners may invest or outsourcing accounting system. Another requirement is that users need to buy new and updated computers in order to bear the software’s activity. Using a computer will also need training and may require a learning curve or worst is its downtime. In addition to that software upgrades are also needed if new versions are available. When computers malfunction, repairs and replacements may take place and this will mean money to spend.