Accounts Distinction 1 - Analyse the circumstances under which a business would adopt a computerised accounting system instead of a manual one.
Both computerised and manual accounting have their pros and their cons. However depending on the size of the business and the scale of the transactions it makes will depend on whether the business would have to adopt a computerised system over the manual method.
Overall if a business was to adopt the computerized accounting, here are some benefits that would come with it; this much less time consuming therefore is more efficient and would cut down on labour costs for employers, the system makes no errors where as employees naturally will always make human errors, the information the company gives will just have to be processed once and will be saved on hardcopy and also on another device so it is very unlikely to lose date, and also this date can be transferred into other sectors or columns at just the click of a button rather than the tedious process of filling in by hand.
For any company that has a healthy cash flow where there is constantly money going in and out of their account should consider the computerized method, due to it being much easier in terms of giving the information, less time consuming and more efficient. Companies vary greatly on the scale of the transactions that are made, however I think that if the company is turning over at least £1500 a month then it is a necessity for the company to adopt the system, as