The Advantages of Using a Manual Accounting System

Written by dennis hartman
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Every business needs to keep track of its finances in an accurate and efficient way. Businesses use accounting to track their own progress versus competitors, meet federal and state regulations, and supply information to investors. The decision to use a manual accounting system instead of one that uses the automatic features of financial software can have several benefits despite being an old-fashioned choice.

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Manual accounting systems are generally simpler for business to implement. There's no need to shop around for the best and most affordable accounting software product. In addition, businesses that use annual accounting can hire any skilled accountant or recent accounting graduate and expect a degree of competence, whereas automated systems require workers with special skills. Most business begin with manual accounting and some find no need to advance to a more complex system of record keeping, especially in the case of smaller businesses with more straightforward finances.


Manual accounting systems have a relatively low cost, both in terms of human resources and program needs. Because a business can hire from a larger group of accountants, it can afford to start workers at lower salaries. Manual accounting systems require basic supplies such as paper, pencils, ledgers and blank accounting forms, but there's no need to invest in the latest computer technology or recurring software updates as with an automated system. The money a small business saves by using a manual accounting system can go into growing the business or investing in employee development.


The records that a manual accounting system produces are paper documents, including ledger books and financial reports. These hard copies are much easier to keep safe and secure than digital files produced by an automated accounting program. Since a business with a manual system never needs to put its information on computers, there's no risk of data corruption from a software error or leaked financial information through e-mail hacking or lost hardware.

Ease of Correction

Manual accounting systems offer an easy method for correcting errors and updating information. While automated systems keep records of old, erroneous records, a manual system allows you to remove incorrect pages or erase entries and replace them with the right information. Dating your manual records makes it easy to know which reports reflect the corrected information, and there's no risk of using the old, pre-correction versions of information.

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