Understanding Computerization and 9 Benefits in Accounting

Financial or accounting records were carried out manually until the 1980s. When computer technology and software that emerged were easy to use, accurate and reliable, slowly financial writing with manual systems began to be abandoned. Now, computerization has become a solution for accounting records. The following is a more complete explanation.

Understanding Computerization

Computerization is a change in the mechanism of data processing from manual to automatic using computer media. The function of the computer is as a human tool that can facilitate and make every human job effective.

According to Nana Mulyana (2004), computerization is an electronic system that works automatically to process data precisely, quickly and accurately as well as receive, store data and produce information based on instructions or programs provided.

Computerized accounting itself is the use of computers and accounting software to record, store and analyze financial data. A computerized accounting system brings many advantages that are not available for analog accounting systems.

Computers as a technology medium run applications that are used to process accounting transactions and produce financial statements of a company.

9 Benefits of Computerized Accounting

1. Accuracy
This accounting system is designed to match the smallest details. Once the data is entered into the system, all calculations, including additions and subtractions are done automatically by the software so as to guarantee the accuracy of the numbers because nothing is processed and recorded twice. All data obtained from the beginning of recording.

2. Automation
Because all calculations are handled by software, computerized accounting eliminates many of the time-consuming processes associated with manual accounting. For example, once the stock of goods is issued and registered, the invoice will be processed automatically making accounting records more efficient.

3. Data Access
By using accounting software, it’s easier for different individuals to access accounting data outside the office, safely. This is especially true if online accounting solutions are used.

4. Reliability or Reliability
Because the calculations are very accurate, financial reports prepared by computers are very reliable and can be accessed quickly because they use systematic calculation tools.

5. Has a Calculation Scale
As your company grows, the amount of accounting needed not only increases but becomes more complex. With computerization, everything is maintained because sorting data using computerized accounting is easier than filtering a number of documents one by one.

6. Speed
By using computerized accounting, the entire account creation process is faster. Once data is input, various reports can be generated directly as easily as pressing the desired button. A manager does not need to wait for hours, even days to submit reports to internal parties in need.

7. Security
Data can be stored online so it is safe from natural disasters such as earthquakes, fires, floods. If a disaster occurs, the system can be quickly restored on another computer in another location, so that it does not worry about damage or loss.

8. Cost-effective
Because using computerized accounting is more efficient than paper based accounting. Work will be done faster and saved immediately. Time efficiency is the low price obtained from this computerized system.

9. Visual
Viewing accounts using a computer allows you to take advantage of the option to view data in different formats. You can see data in tables and use various types of graphs. This is also the advantage you get from computerized accounting.

It cannot be denied anymore, computerized accounting is a technological advance in the field of accounting that is needed to facilitate the preparation of corporate financial statements. Journal is a provider of online accounting software services. With Journal, you will get freedom in managing business finances easily, quickly, safely, and comfortably. The journal will provide instant financial reports according to what your company needs. For more information about journals or features that you can get with journals, you can see here.