The Disadvantages of Accounting Information Systems

Written by jennifer vanbaren
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The Disadvantages of Accounting Information Systems
(woman with computer in the office image by Oleg Berlov from Fotolia.com)

An accounting information system is designed for businesses to use for recording their financial transactions. Information is entered, processed, stored and distributed through this type of system. Accounting information systems have many benefits; however, there are also some disadvantages to them.

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Learning the System

Learning an accounting information system can often be difficult and time-consuming. Individuals must be trained on a system, and this can cause a disadvantage to companies in terms of time and manpower. An accounting information system is made up of many different components, and almost all systems are computerised. Because of their complexity, some people may find them hard to use. It can take weeks or months for a person to understand an accounting system, and usually the individual still does not understand completely what the system is capable of. If the employee quits working at the organisation, it can take weeks or months, once again, to train another employee.

Loss of Information

Accounting information systems are usually computerised. Because of this, there is always a risk of losing information through power outages or system crashes. When this happens, there is a chance that all the information in the system could be lost. Companies take precautions for this problem by backing up their files regularly and performing standard maintenance on all computer systems. They also install antivirus software as another precaution. Still, none of these steps eliminates the potential problem that may occur. Accounting information systems store a company's financial information for years. If a system crash occurs, it causes a major disadvantage to the company. All, or some, information is lost, and there's a chance it may never be recovered.

Re-evaluation

Companies often change their way of doing business to keep up with the latest trends. To keep up in a demanding business world, these changes may impact an accounting system. An accounting information system is difficult to set up because every company is unique in its own way. In order to keep up with changes, accounting information systems must be re-evaluated often. Changes often need to be made in a system in order to process information efficiently. This can be a disadvantage to companies because it takes time for the re-evaluation, and it costs money.

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