Manual Accounting System versus Computerized Accounting System

What are we
Manual Accounting System Computerized Accounting System
comparing?

Meaning Manual Accounting is a system of Computerized Accounting is an

accounting that uses physical accounting system that uses an
registers and account books, for accounting software, for recording
keeping financial records. financial transactions electronically.

Recording Recording is possible through book Data content is recorded in customized

of original entry. database.

Calculation All the calculation is performed Only data input is required, the
manually. calculations are performed by computer
system.

Speed Slow Comparatively faster.

Adjusting It is made for rectification of errors. It cannot be made for rectification of

entries errors.

Backup Not possible Entries of transactions can be saved and

backed up

Trial Balance Prepared when necessary. Instant trial balance is provided on daily
basis.

Financial It is prepared at the end of the It is provided at the click of button.

Statement period, or quarter.
In conclusion, we can say that As the number of business transactions increases, it is
difficult to manage accounts manually, as it takes a lot of time to update a single transaction
in all the accounts that it affects. In computerized accounting, a number of limitations of the
manual accounting have been removed. Whenever the transactions occur, the entry is
made and it is updated automatically in all the accounts that it affects, in the computerized
accounting.