What are the benefits of a computerized accounting system?

Answer 1

A computerized accounting system has many benefits, including: Ø Improved Reporting To Funders - many projects have more than one funding source, each with specific and different requirements; Ø assisting with compliance with charity regulations e.g. SORP; Ø Minimal sing Mathematical Errors- with computers doing the maths, errors are virtually eliminated (unless the data is keyed in improperly in the first instance); Ø Better Record Keeping - whilst human error can still corrupt your data e.g. entering figures in wrong fields, a good package will reduce this possibility and ensure that there is a reference for all transactions e.g. for every cheque or receipt entered/created. However, this does not eliminate all manual work. Vouchers, invoices, receipts etc. will still need to be filed in a logical order and details of what was entered onto the system should also be recorded on paper. This will help when you need to track errors, in the annual audit and if disaster strikes and you have to re-enter all transactions; Ø Saving Time - with fewer errors and the software automatically generating reports, time will be saved in the long run; Ø Saving Money - even though there will be the immediate cost of the software, you are potentially saving the costs of unnecessary audits as well as saving money through time saved