Impact of Removing Manual Accounting Functions in an Organization

Management accounting

INTRODUCTION
Accounting refers to the system of maintenance of the financial accounts of the company. The
company can maintain the accounts by implementing the manual accounting system or,
computerized accounting system or manual accounting system along with the computerized
accounting system (Beattie, 2014). The present study focuses on the impact on the removal of
the manual accounting functions entirely within the organization.
Manual accounting function
Manual accounting functions refer to a system of maintenance of the accounts by using the
physical register and the account books, for keeping the financial records. It is very easy to set up
the manual accounting function in the business. It is very secure and does not require any
electricity and internet facility for the access of the data. It is more flexible as compared to the
computerized accounting system. However, in the manual accounting functions, the possibility
of the human error such as an error, in addition, incorrect recording of data, transposition error,
incomplete recording of data and so on exists. The further human takes very long time to
generate the reports that are why it is not suitable for the large organizations as there are large
volumes of transitions. Further in this accounting system implementation of the disaster recovery
plan is very typical (Ellwood, 2018).
Computerized accounting function
Computerized accounting function refers to a system of the maintenance of the accounts by using
the accounting software, for keeping the financial records electronically. This system assists the
managers in interpreting the financial data and taking a decision by collection, recording,
classification, summarization of the financial data in a computer system with the accounting
software. This system is very suitable for the large organization as it can process a large amount
of data in a very few spans of time. Further accuracy, data access, automation process, speed,
security are the advantages of this system. Through the computerized accounting function owner
of the business has the right to give the permission of access to the data to a particular person by
which the unauthorized access of the data can be prevented. However, in this system, there are
chances of the fraud by the hacker. It is because; in a situation where the hacker gets access to
the financial data of the business then sensitive information of business can be leaked and