Accounting packages help in daily commerce and businesses. A traditional paper-based accounting has been done since ever. However, with the advancement of technology, conventional methods are being replaced by technology. Therefore, paper-based accounting has also switched to online accounting software. Using accounting software offers many advantages. These software are also being employed by the nonprofessional who does not know accounting at all. We have come with the merits and demerits of both methods with the intention to help you decide which system, either manual or online you are going to choose.

Manual or Paper-Based Accounting System

            Merits

  • The first advantage of using manual accounting is its vast scope. It can be applied to any commerce and businesses
  • This system is a way easier for arrangement or setup
  • It offers more flexibility and suppleness when compared to that of computerized accounting software
  • It offers more privacy and security
  • Another great advantage is that manual system is free of electricity
  • It is cheaper than the computerized system
  • In addition, manual operating offers better impression about control

            Demerits

  • The first demerit of employing manual systems is that almost all manual systems are lying on the front of human error
  • It takes longer in generating the reports
  • It is not best for bigger businesses but good for the smaller ones
  • Manual records are more prone to perils like water and fire
  • It is hard to implement the disaster recovery preparations
  • This system is more time consuming than the computerized system
  • It is not suitable for the places where the volumes concerning transaction are large

Accounting Software System

            Merits

  • Computerized system offers you simpler data entry ways
  • This system is speedier and reduce delays
  • Accounting software reports automatically creditors and debtors, on loss and profit, inventory counts, customer accounts, and forecasting, etc.
  • They reduce the chance of human error
  • The software saves time manifold
  • This system offers information accuracy
  • The accounting software tracks inventory of your business automatically

            Demerits

  • You may require purchasing of yearly backing and upkeep for the bundle
  • Generally, the record bundle is suitable for most of the businesses. However, if your commerce is awfully uncommon; you may have to modify your work in accordance with your bundle, or give money in order to get the adjusted bundle in accordance with your requirements

We have described all the benefits and drawbacks of both manual and computerized accounting systems. It is now up to you which system you are going to opt for your business. If you want to save time, money, as well as excellent data accuracy then computerized systems are better for you. If your business is tremendously uncommon and there is no potential software related to your commerce’s requirements as well as you need more privacy and security than the paper-based or manual accounting system will work better for you. After all, it is only you who can make the best decision for yourself. We are only here to guide you with the data; showing facts and figures that can help you make easy and potential decisions.