Computer vs manual system

Both types of information system are designed to help a business carry out its day-to-day running and operations. In recent times, computer-based systems are generally considered to be more popular as more businesses are choosing to keep up with the developments in information technology. There are still those who continue to use manual systems though, perhaps as a matter of financial constraints or it may simply be more suitable for their type of business.

A manual-based information system is generally considered to be cheaper than a computer-based system, however it may contribute to lower levels of staff productivity. In addition, having data stores manually in boxes or files is not very environmentally-friendly and this could lead company documentation at risk if a fire broke out for example as there would be no back up.

A computer-based information system may be considered to be more cost effective and efficient than a manual system. It speeds up operations and can back up important information at the touch of a button. It is however very expensive to set up and may need to be maintained by IT technical support advisors on a regular basis.

An information system does not only refer to the way in which business data is stored by a company. But in the case of computer files, they can be easily transferred through e-mail and through many other forms electronically whether they are less number of files or more so the feasibility factor is more here.

Additionally, it would take time to transfer files manually than through a computer. Due to the tangible nature of the manual files there maintenance is also hard as we have to take care of them regarding many external environmental factors but it is not that difficult in the case of computer files. So, the chances of making a mistake while working on a computer are comparatively less than a manual file.

Another benefit seen while making a computer file is that we can gather lots of information for writing in a quick way but while writing manual file we have to go through different sources such as books, journals, research papers and other sorts of database which requires a lot of time and can delay our work.

Usually, we have secret manual files that are not to be seen by unauthorized people but due to their tangibility factor they can be accessed by them and can be destroyed by fire, etc.

These files are hand-written and are always present in an intangible form. Moreover, they can be stored in different areas like shelves, cupboards and in a file room, etc. Also, they are always present in hardcopy. The maintenance of the manual files is also an issue and they can be destroyed easily as well. In a manual system, you cannot make a back up of all the transactions recorded. Computerized accounting system, on the other hand, automatically saves and backs up your entire data.

In a manual accounting system, financial systems are prepared at the end of the period. While in a computerized accounting system, your financial statements and trial balance are just a click away. Powered by The Room Marketing. Mon - Fri: - Saturday, Sunday and after hours by appointment.

Facebook Linkedin. In this article, we tell you about the six main differences between manual and computerized accounting systems 1. Mechanism Manual accounting systems use pen and paper and require a lot of human effort to record transactions.

Errors Since manual accounting systems only involve human effort, there are more chances of errors. Security Your data needs to be secured and this is a huge priority for all businesses.