Computerized Accounting Versus Manual Accounting

In the current scenario, advent of computer is in every field.In business firms also,computerized accounting is used instead of manual accounting so as to bring efficient decision making and reporting.There is a reason behind replacing the manual accounting as book keeping which has been done manually is a very long procedure.Firstly,cash transactions are recorded in cash book and non cash transactions in the subsidiary books and then the amounts from cash book and and subsidiary books are posted into respective ledgers.To prepare final accounts for any particular period,it is necessary to ascertain closing balance of ledgers of that period.For closing balance,one has to total the debit and credit amounts and find their difference and that difference is transferred to the trial balance.Since posting,balancing and totaling which are done manually give rise to enough errors in it.Also,it consumes a lot of effort.While in computerized accounting,we have to create all the ledgers and enter opening balance(in the subsequent years we need not to create the ledgers again and carry forward previous year’s closing balance as opening balance since it would be carried forward on own by a software) and classify under relevant account group which tells the software the nature of the ledger and thereby where it will appear.Therefore all the transactions should be entered in vouchers.Everything else like posting to ledger,preparation of trial balance,final accounts etc will be done by the software.In manual book keeping,it is required to pass journal entries which is not required in the computerized accounting.The software does this task on it own.Therefore,there are so many advantages of computerized accounting.One of the advantage is our accounts are always open and if any changes are to be done it can be done instantly.However,a software which has been developed by India for computerized accounting is Tally.There are certain steps for creation of final accounts in Tally which are as-Company creation,groups formation,identification of ledgers within the groups and vouchers creation.It has become easy to do accounting since manual accounting have been replaced over computerized accounting.

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