Computerized Accounting System VS Manual Accounting System

Differences Between Computerized Accounting System And Manual Accounting System

Computerized System:

1. Starts with the account balances in the ledger at the beginning of the period.

2. Analyzes and classifies business transactions by type. Access appropriate menus for data entry.

3. Computer automatically posts transactions as a batch or when entered on-line.

4. The unadjusted balance are available immediately after each posting.

5. The trial balance, if needed, can be accessed as a report.

6. Enters and posts adjusting entries. Print the financial statements. Runs automatic closing procedure after backing up the period’s accounting records.

7. The next period’s opening balance are created automatically as a result of closing.




Manual System:

1. Starts with the account balances in the ledger at the beginning of the period.

2. Analyses and journalise transactions as they occur.

3. Posts journal entries to the ledger accounts.

4. Computes the unadjusted balance in each account at the end of the period.

5. Trial balance is processing step leading to the statements.

6. Prepares the financial statements. Journalizes and posts the adjusting entries. Journalizes and posts the closing entries.

7. Prepare the post-closing trial balance. This trial balance steps 1 for the next period.


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