Computerized accounting systems have several advantages over manual systems, including increased speed, accuracy, and availability of information. However, computerized systems also have some limitations. They require upfront and ongoing costs, and businesses are dependent on the computers and software functioning properly. Computerized systems can also be subject to data errors and fraud. Accounting in general has limitations, such as using estimates and historical costs, limited predictive value, and qualitative factors not being measurable. Manual accounting systems are time consuming, prone to errors, inefficient, and have other disadvantages compared to computerized systems.

5. Computerized Accounting System
 A Computerized Accounting System is now a
basic necessity and no longer a luxury among
businesses. In the past, accounting was done
manually by business owners. The process proved
time-consuming AND OMIT human error. There were
also problems with storage and retrieval of
information.Computerized accounting systems have
revolutionized the way businesses are conducted.
They have enabled companies to paint a more
accurate picture of their organization’s financial
performance and to make comparisons and across
places and periods of that performance.

6. MOST FREQUENTLY USED
SOFTWARES
 There are a lot of top accounting software available in every
category. So, it is not easy to select the best ones. Below are top five
accounting software in every category.
A. business/personal accounting software:
1. Peachtree (Best Software)
2. MYOB Plus for Windows (MYOB Software)
3. Peachtree Complete Accounting (Best Software)
4. QuickBooks Online (Intuit)
5. Small Business Manager (Microsoft)
B. Low-End Accounting Software:
1. BusinessVision 32 (Best Software)
2. MAS 90 & MAS 200 (Best Software)
3. QuickBooks Pro 2003 (Intuit)
4. ACCPAC Pro Series (ACCPAC International)
5. Vision Point 2000 (Best Software)

7. C. Middle-Market Accounting Software:
1. ACCPAC Advantage Series Corporate Edition (Best
Software)
2. Great Plains (Microsoft) MAS 90 & MAS 200 (Best Software)
3. Navision (Microsoft)
4. SouthWare Excellence Series (SouthWare)
5. SYSPRO (SysproUSA)
:
1. Axapta (Microsoft Software)
D. High-end accounting ERP Market
2. e-Business Suite (Oracle)
3. MAS 500 (Best Software).
4. Solomon (Microsoft)
5. ACCPAC Advantage Series Enterprise Edition (Best
Software)

9. MAJOR ROLES OF
COMPUTERIZED ACCOUNTING
 Material Management
 Purchasing / Receiving / Stores
 Production
 Manufacturing
 Support - Production Planning, Quality control,
Maintenance
 Marketing
 Distribution
 Personnel
 Finance
 Information -
 Accounting /Computer Services
 Materials Labour Capital Information

10. MAJOR ADVANTAGES Speed – data entry onto the computer with its formatted screens and built-in
databases of customers,supplier details and stock records can be carried out
far more quickly than any manual processing.

Automatic document production – fast and accurate invoices, credit notes,
purchase, printing statements etc all done automatically by softwares.

Accuracy – there is less room for errors as only one accounting entry is
needed for each transaction rather than two (or three) for a manual system.

Up-to-date information – the accounting records are automatically updated
and so account balances (e.g. customer accounts) will always be up-to-date.

Availability of information – the data is instantly available and can be made
available to different users in different locations at the same time.

Current time information – reports can be produced easily which will help
management monitor and control the business,

11. Legibility – data is easy to read.the onscreen and printed data should
always be legible and so will avoid errors caused by poor figures.
Efficiency – better use is made of resources and time; cash flow has
improve through better debt collection and inventory control.
Staff motivation – the system will require staff to be trained to use new
skills, which can make them feel more motivated.
.
Cost savings – computerized accounting programs reduce staff time doing
accounts and reduce audit expenses as records are neat, up-to-date and
accurate.
Reduce frustration – management can be on top of their accounts and
thus reduce stress levels associated with what is not known.
The ability to deal in multiple currencies easily – many computerized
accounting packages now allow a business to trade in multiple currencies
with ease. Problems associated with exchange rate changes are
minimized.

12. Peach Tree
 Peachtree is an accounting application for small and
medium-sized businesses (SMBs) made by Sage
Software. Peachtree enables controllers and
managers to automate and manage numerous
accounting tasks, like:
* Reconciling accounts payable and receivable.
* Creating financial statements,
* check invoices.
* Tracking banking transfers and payroll.
* Importing and manipulating spreadsheets.
* Integrating scanned documents like checks, receipts
and invoices, eliminating paper from the accounting

13.  Sage Software's release of Peachtree Premium
Accounting for Construction is customized
specifically for the needs of
 contractors
 operations managers in the construction industry
 Small construction companies and individual
contractors both use construction industry-specific
functions like job costing, fixed assets tracking,
progress billing and advanced budgeting to control
costs, track expenses and organize billing.
 Peachtree also makes industry specific versions for
accountants, distributors, manufacturers and non-
profit organizations.

14. SYSTEM REQUIRMENT
 Peachtree minimum system requirements
include at least a
 1 GHz processor and
 512 MB of RAM for a single user
installation of Peachtree.
 Sage suggests 1 GB of of free disk space,
Internet access, Internet Explorer 6.0 and
at least Windows 2000 SP3.

17. 

18. 1) LIMITATIONS OF COMPUTERIZED
ACCOUNT SYSTEM
2) GENRAL LIMITATIONS OF
ACCOUNT SYSTEM
3)LIMITATIONS OF MANUAL
ACCOUNT SYSTEM

19. Computerized Accounting System
ALTHOUGH Accounting System is
now a basic necessity but as we
know that with each positive there is
some negative too,same is with
accounts system,its serving us really
well but also got some draw back.

20. DISADVANTAGES OF
COMPUTERIZED ACCOUNT SYSTEM
 Cost
When using accounting software, you must buy the software and any
additional licenses necessary for other users and computers. Some software
requires you to purchase upgrades or updates for additional features. You
must also ensure your computer is capable of running the software. If not,
you'll need to upgrade your computer as well.
 Dependent on Computers
If your computer crashes or data is corrupted by a virus, you won't be able to
use your accounting software until the problem is fixed. This also means you
won't have access to any entered data until the computer is running again.
Your data can also be corrupted, meaning you will have to re-enter
information unless you've backed up your files. In addition, if there's a power
failure, your software will be unusable unless you're on a battery-powered
laptop.
 Fraud
Accounting software data requires extra levels of security to prevent problem
like fraud and embezzlement. Software makes it easier for users to alter
data, making fraud easier to accomplish. As a result, there is an increased
need for internal auditors to check for any data inaccuracies. Security
measures must also be taken to limit the amount of control users have over
any accounting software's features.

21.  Additional Software
Most accounting software requires you to have additional software in
order to view reports. For instance, some programs allow you to
export data as a PDF file or an Excel spreadsheet. This allows users
without the accounting program to view the data. However, the
viewing software may pose an additional expense to the user.
 Human Error
While it is easy to write down numbers incorrectly, it is even easier to
mistype a number. Entering data into accounting software too quickly
may result in serious errors. With the program performing
calculations, it can be more difficult to trace the cause of the problem.
Spreadsheets, digital ledgers or written ledgers make tracking simpler
and faster.
 Training
Accounting software requires you to take the time to learn how to use
it. While you may be an experienced accountant, you'll still need to
learn what each button and menu command does in order to use
accounting software effectively. This learning curve can result in costly
errors. In some cases, paid training may be necessary to learn how to
perform certain tasks. If you're not tech savvy, the process could be

22.  Time
Many accountants find that it takes more time to enter data into accounting
software than it does to write it or type it into a spreadsheet. Due to step-by-
step screens, the process often takes longer, especially for those who don't
use the software often or are still new to using the program. If the software
requires numerous steps to enter basic data, the time requirements may
outweigh the benefits of automatic calculations
 Maintenance
Maintaining accounting software not only includes performing upgrades to the
accounting software package, but also maintaining and upgrading all the
necessary equipment to utilize the accounting software as new versions can
require upgraded equipment. That equipment often includes your PC or
laptop, monitor, printer, Internet connection and modem, backup drive and
operating system. If you do not wish to spend the time and money to keep
your equipment in compliance with the accounting software, it is best to stick
to spreadsheet or ledger accounting.

23. General limitations of accounts
 Different accounting policies and frameworks
Suppose we are using two different methods of
calculations,geographically used in different areas or countries,there
statement don’t match so when people from different region do such
business,they face the problems too.
The use of different accounting frameworks (e.g. IFRS, US GAAP) by
entities operating in different geographic areas also presents similar
problems when comparing their financial statements. The problem is
being overcome by the growing use of IFRS and the leading
accounting bodies are trying to arrive at a single set of global
standards.
 Accounting estimates
Accounting requires the use of estimates in the preparation of
financial statements where precise amounts cannot be established.
Estimates are inherently subjective and therefore lack precision as
they involve the use of management's foresight in determining values
included in the financial statements. Where estimates are not based
on objective and verifiable information, they can reduce the reliability
of accounting information.

24.  Verifiability
Audit is the main mechanism that enables users to place trust
on financial statements. However, audit only provides
'reasonable' and not absolute assurance on the truth and
fairness of the financial statements.there is not a sort of surety
in this…
 Use of historical cost
Historical cost is the most widely used basis of measurement of
assets. Use of historical cost presents various problems for the
users of financial statements as it fails to account for the change
in price levels of assets over a period of time.account predicts
for future by in keeping previous calculations estimates which
may prove wrong in future like in case of depreciation,you
purchase an asset of 10000 rupees in 2007,in 2009 accounts
shows 50 % depreciation but in facts its value has been
increased by 100 %...that is possible too…
That is a suspected area in accounts too…

25.  Measurability (Only Cash)
Accounting only takes into account transactions that are
capable of being measured in financial terms. Therefore it don’t
count your personal servings such as the competence of
workforce or goodwill.
 Limited predictive value
It can only predict for a limited future era.Depending upon the
previous calculations and statements.
 Fraud and error
Financial statements are susceptible to fraud and errors which
can undermine the overall credibility and reliability of information
contained in them.
It is completely depends upon the the person who is auditing
your firm can give you a true or false statement too.So in short
accounting calculations are always suspected.(also known as
'window dressing') has been a unfortunate reality in the recent

26.  Subjective Measurement
Accountants have to attach a monetary value to every event or
transaction that has taken place within the organization. Sometimes
the monetary value of the transaction is impossible to be
ascertained. Consider the case of depreciation. Accountants can at
best provide estimates of the depreciation that should have taken
place given the scale of operations. However, these estimates are
usually way off the mark. This makes accounting policies open to
debate as well as manipulation.
 Qualitative Factors
Accountants try to attach a monetary value to everything. The things
they cannot attach a monetary value to are not accounted for!
Consider the case of goodwill. Until the organization has explicitly
paid for the goodwill it purchased from another company, it cannot
account for goodwill. According to accountants, the goodwill
generated by the firm internally is worthless. We all know that this is
not the case and therefore accounting is flawed as far as goodwill is
concerned.

27.  Unstable Unit of Account
Accountants have to measure all transactions in a single unit of
account.
 This unit of account is usually the currency that is being used in
a particular country.
 However, it is common knowledge that the value of currencies is
not stable. Inflation, deflation and such other forces make
currency values dynamic. When accountants express assets
purchased in last year’s rupees with the same unit as
purchased by this year’s rupees, it presents a distorted image.
Many companies have low book values because their assets
were purchased a long time back during periods of no inflation.
 No Information about Opportunity Cost
Accountants provide information about what has happened.
However, management would be better off if they had
information about what could have happened if they used their
resources in the optimum manner. This feature is also lacking in
accountancy making its usefulness limited from the managerial

28.  ONLY FINANCIAL RECORDING
Accounting records only those transactions which can be
measured in monetary terms.
 DON’T RECORD CHANGE OF PRICE
Accounting transactions are recorded at cost in the
books.The effect of price level changes is not brought
into the books with the result that comparison of the
various years becomes difficult. For example, the sale to
total asset in 2009 would be much higher than in 2002
due to rising prices , fixed assets being shown at the cost
and not at market price.

29.  NOT REALISTIC
Accounting statements are prepared by following basic
concepts and conventions. Therefore the accounting
information may not be realistic.
 Incomplete knowledge of costs
JUST MAKE ESTIMATES
 No provision of cost control
Financial accounting does not help business organization
for controlling the cost. Because, there is no provision of
controlling cost in it. In financial accounting, we write cost,
if we paid any expenses. Thus there is no provision of
improvement in financial accounting. Except this, there is
no any other way to inspect

30. Disadvantages of manual accounts system
 Time consuming
It is much more time consuming than the computerized one.
 More error possibilities
Because of manual doings this sytem have more error omitting
possibilities.
 Less efficient
It is much inefficient than the computerized one.
 Slower access to the data
 Less current time availability
 Require physical space for storage
 Much more cotly
 Large number of staff required
 Mostly Illegible
 Problem in finding the mistake