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Computerized vs. Manual Accounting

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Computerized vs. Manual Accounting
King Fahd University of Petroleum and MineralsENGLISH 214:Academic and Professional CommunicationSemester (113) | Term Report Prepared For : Mr. Nelson Title: | Computerized Accounting should completely replaces Manual AccountingPrepared By : Ali H. Al-MuslimID#: 200628620Section# : 05SN#: 02Group#:01Word Count:1,333 | 10/7/2012
10/7/2012

Table of Contents

Table of Contents II Introduction 3 I. Manual Accounting 4 A. Benefits 4 1. Cost effective 4 2. Availability 4 B. Limitations 4 1. Finding Errors 4 2. Time Factor 5 II. Computerized Accounting 5 A. Benefits 5 1. Speed 5 2. Saving Money 6 B. Limitations 6 1. Lack of security 6 2. External events 7 Conclusion 7 C. Summary. 7 D. Evaluation 7 E. Recommendation 8 WORKS CITED 9

Computerized Accounting should completely replaces Manual Accounting
Accounting is the backbone of every existing business. Starting with the definition of accounting: “Accounting is the art of recording, summarizing, reporting, and analysing financial transactions” (Snyder, 2008). It is clear from the definition that accounting has three main activities: recording the transactions, summarizing the accounts and analysing the financial statements.
These main activities can be approached through what is called the accounting cycle which is basically what accountants do before they prepare the financial statements. Image 1 below illustrates the accounting cycle and how accountants move from one step to another.

Image 1: The accounting cycle (Glaser, 2011)
It starts from journal entries which are record the transaction in the company’s book called the general journal as debits and credits. Then these transactions are posted into the related accounts to get the balances in another book called the general ledger. After that, adjustments are made until we reach the final result which is preparing the financial statements that are the balance sheet, income statement,


Cited: Avinash. (2012, January 13). “Computerized accounting specialists.” Retrieved from http://accounting.ezinemark.com/computerized-accounting-specialists-7d333c4528a2.html Drew, B. (n.d.). “The advantages of manual or computerized accounting.” Retrieved from http://smallbusiness.chron.com/advantages-manual-computerized-accounting-4910.html Francis, K. A. (n.d.). “The advantages of manual vs. computerized accounting”. Retrieved from http://smallbusiness.chron.com/advantages-manual-vs-computerized-accounting-4020.html Glaser, A. (2011, September 2). “Accounting completing and closing the accounting” cycle. Retrieved from http://www.economicswiki.com/accounting-completing-closing-accounting-cycle/ Magloff, L. (n.d.). “Advantages & disadvantages of computerized accounting”. Retrieved from http://smallbusiness.chron.com/advantages-disadvantages-computerized-accounting-4911.html Ots. (n.d.). Retrieved from http://ots-sdchc.org/computerized-accounting-program/ Schreiner, E. (ND). “The advantage & disadvantage of manual accounting.” Retrieved from http://smallbusiness.chron.com/advantage-disadvantage-manual-accounting-24515.html Snyder, S. (2008).” What is accounting?”. .Microsoft.com Retrieved from http://office.microsoft.com/en-us/support/what-is-accounting-HA010102445.aspx
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