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Explain about the disadvantages of manual accounting?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 rohith asked over 2 years ago

Hi, Can you tell me about the disadvantages of manual accounting?

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5 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 acharya answered over 2 years ago

Hi, It takes more effort and physical space to keep track of paper documents, to find information and to keep details secure. When mistakes are made or changes or corrections are needed, often a manual transaction must be completely redone rather than just updated. With manual or partially automated systems information often has to be written down and copied or entered more than once. Systemisation can reduce the amount of duplication of data entry.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered over 2 years ago

Manual systems put pressure on people to be correct in all details of their work at all times, the problem being that people aren’t perfect, however much each of us wishes we were. With manual systems the level of service is dependent on individuals and this puts a requirement on management to run training continuously for staff to keep them motivated and to ensure they are following the correct procedures. It can be all to easy to accidentally switch details and end up with inconsistency in data entry or in hand written orders. This has the effect of not only causing problems with customer service but also making information unable be used for reporting or finding trends with data discovery. Reporting and checking that data is robust can be timely and expensive. This is often an area where significant money can be saved by automation.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered over 2 years ago

> Explain about the disadvantages of manual accounting? --Manual systems put pressure on people to be correct in all details of their work at all times, the problem being that people aren’t perfect, however much each of us wishes we were. With manual systems the level of service is dependent on individuals and this puts a requirement on management to run training continuously for staff to keep them motivated and to ensure they are following the correct procedures. It can be all to easy to accidentally switch details and end up with inconsistency in data entry or in hand written orders. This has the effect of not only causing problems with customer service but also making information unable be used for reporting or finding trends with data discovery. Reporting and checking that data is robust can be timely and expensive. This is often an area where significant money can be saved by automation. --It takes more effort and physical space to keep track of paper documents, to find information and to keep details secure. When mistakes are made or changes or corrections are needed, often a manual transaction must be completely redone rather than just updated. With manual or partially automated systems information often has to be written down and copied or entered more than once. Systemisation can reduce the amount of duplication of data entry. --Another impact of manual systems is on Customer service. Customer queries can be difficult to respond to as information is stored in different places and may even require that you find the right person before being able to respond. This is no good if they are out to lunch or only work part time. Inconsistency in data entry, room for errors, miskeying information. Large ongoing staff training cost. System is dependent on good individuals. Reduction in sharing information and customer services. Time consuming and costly to produce reports. Lack of security. Duplication of data entry.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 lochan answered over 2 years ago

There can be many disadvantages of using a manual accounting system. Accounting, for any business, can be a complex undertaking. A manual accounting system requires you to understand the accounting process in a way that may be unnecessary with a computerized accounting system. This can be an advantage or a disadvantage, depending on the person doing the bookkeeping - often, a specially trained professional is needed to ensure that accounting is done properly. Unraveling the complexity of your financial records by hand may be time consuming. Since it takes time to generate reports, you may be neglecting other aspects of the business and miss opportunities for growth. Human error also plays a role in inaccurate financial records: Manual accounting can be tiresome and tedious, causing bookkeepers to make mistakes. Additionally, records may only be available in paper format, which can cause issues if they are lost, stolen or damaged. Thanks

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Open uri20170510 32134 1uwcnoc?1494421631 Shubhangi Jain answered over 2 years ago

Manual systems put pressure on people to be correct in all details of their work at all times, the problem being that people aren’t perfect, however much each of us wishes we were. With manual systems the level of service is dependent on individuals and this puts a requirement on management to run training continuously for staff to keep them motivated and to ensure they are following the correct procedures. It can be all to easy to accidentally switch details and end up with inconsistency in data entry or in hand written orders. This has the effect of not only causing problems with customer service but also making information unable be used for reporting or finding trends with data discovery. Reporting and checking that data is robust can be timely and expensive. This is often an area where significant money can be saved by automation. It takes more effort and physical space to keep track of paper documents, to find information and to keep details secure. When mistakes are made or changes or corrections are needed, often a manual transaction must be completely redone rather than just updated. With manual or partially automated systems information often has to be written down and copied or entered more than once. Systemisation can reduce the amount of duplication of data entry. Another impact of manual systems is on Customer service. Customer queries can be difficult to respond to as information is stored in different places and may even require that you find the right person before being able to respond. This is no good if they are out to lunch or only work part time. - Inconsistency in data entry, room for errors, miskeying information. - Large ongoing staff training cost. - System is dependent on good individuals. - Reduction in sharing information and customer services. - Time consuming and costly to produce reports. - Lack of security. - Duplication of data entry.

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