The computerized accounting system is a data structure that processes financial transactions and actions following GAAP to generate end-user information. The first requirement is that these systems adhere to a set of stated rules known as accounting ethics. There is also a user-defined aspect to protect records and information access (Alshbiel & Al-Awaqleh, 2011). A computerized accounting system must have hardware and software-based data storage and processing structure known as an operating setup.
It should be noted that Sage 50 Accounting is one of the most popular software subscriptions for the business management that is based on a limited Sage product that is typically commercialized in the United States. This strategy will benefit a company that handles accounting. The following are some of the benefits and drawbacks of using Sage 50 accounting software instead of a manual accounting system:
- Registering: The system allows for the efficient and secure registration of all company data. At the same time, all financial transactions are documented in books that can be easily stolen or changed within a database that can be protected from unauthorized access.
- When a manual accounting system is used, all business transactions in the company are typically recorded in the original entry bookless and then further subdivided into the leader accounts, resulting in fraudulent business information (McLuckie et al., 2011). In a digital system, no such disappointment may be used to clarify the transaction.
- Financial statements: The basis of the financial statements in the manual accounting system typically presupposes proof of balance. The necessity, on the other hand, does not exist in a computerized accounting system.
Alshbiel, S. O., & Al-Awaqleh, Q. A. (2011). Factors affecting the applicability of the computerized accounting system. International Research Journal of Finance and Economics, 64, 36-53.
McLuckie, T. M., Ross, S. E., Belay, T., Nestor, S., Valliani, A., George, B. … & Lapera, A. C. (2011). U.S. Patent No. 7,983,971. Washington, DC: U.S. Patent and Trademark Office.