What are differences between manual & computerized accounting?

Written by christopher carter
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Manual accounting requires that all journal entries, invoices and other financial documents be created by hand. Computerised accounting allows users to input information into accounting software programs.

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Computerised accounting produces information much faster than manual accounting. Accounting software packages, such as QuickBooks and Peachtree, come with built-in databases that allow users to input data.


Manual accounting systems are prone to mathematical errors and misplaced numbers. With a computerised accounting system, your company data is automatically calculated based on numbers you input.

Financial Statements

In a manual accounting system, you have to prepare your company's income statement, balance sheet and statement of owner's equity by hand. Information from your journal entries helps formulate your company's financial statements. Computerised accounting systems allow financial statements to be created from information stored in the database.


The cost of computerised accounting systems can range from hundreds to thousands of dollars for large businesses. A computerised accounting system may save on man hours used for creating financial statements and other reports. For this reason, many small and mid-sized businesses use computerised accounting software.


Reports are created in a timely manner when using a computerised accounting system. Reports generated from computerised accounting software allow managers to run the company in a more efficient manner. Creating reports in a manual accounting system may lead to more staff frustration and result in having to work with outdated information.

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