Computerised Accounting Case Study

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D1: Analyse the circumstances under which a business would adopt a computerised accounting system instead of a manual one. The manual accounting system is when the business uses it often but still it a choice of record keeping for some small businesses. In this case the manual bookkeeping is maintained by computerised system, and providing layers of traditional form of maintaining a business accounts and records. Manual Accounting This accounting system means that they are used less but still keep the record of book keeping for some small businesses. In this case the manual accounting is maintained by computerised system because they are the forms of maintaining a business accounts and records. This is involved in keeping ledgers like…show more content…
Computerised accounting system can benefit small business because all the transactions can be made by computer. Small business owners face the task of ensuring their accounting procedures are as accurate and efficient as possible. The best method they could use is computerised accounting system that can help them to record transactions more quickly than any manual processing. Complexity, value and volume Computerised accounting system can benefit them because it is an automatic document production, speed, accuracy and update information. Cost savings can be computerized accounting programs reduce staff time doing accounts and reduce audit expenses as records are neat, up-to-date and accurate. This system allows them to record business transactions accurately and generate financial reports quickly for management review. However if Rumble carry less transactions this means they won’t need to have computerised accounting system because it is very expensive for them to use. In this case it is best for them to have manual accounting system because it is reliable, cheap and easy to use. They can easily do their transaction without problems. This means that these Systems can be costly as they require constant updating and staff need to be trained to effectively use the…show more content…
This means that they could adopt a computerised accounting system to deal with financial transactions and many staff can help them do this these transactions. Computerised Accounting system can benefit them because they can do all their calculations in the computer which helps them to do their work quickly. Rumble is a small business so they will have less staff. On the other hand If Rumble did not have many staffs this means they won’t need to adopt a computerised accounting system because it is too expensive and also manual accounting system could help them instead if they had less staff. In this case Manual accounting system is easier for them to handle with their calculations through sales day book, petty cashbook and cashbook. The business has to separate ledgers for each part of the Manual accounting system, such as accounts payable, accounts receivable and

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