Computerized accounting is the practice of bookkeeping and managing other accounting tasks with the aid of computers. It is extremely common in modern organizations of any size. Computerized accounting typically uses dedicated accounting software, spreadsheet programs or a combination of the two.Computerized accounting has many advantages for a business or an organization. If implemented properly,
it vastly increases the speed and ease of both recording and retrieving accounting information. It also allows accounting information to be shared almost instantly via the Internet or local networks. Modern spreadsheet programs are capable of automating many aspects of accounting, such as calculations and double entries. No modern accountant operates successfully without skill in computerized accounting. Computerized accounting vastly increases the efficiency of many accounting tasks, but it does have a few downsides. Computers add programming errors and malfunctions to human error as a source of inaccuracy in accounting. Such systems are also vulnerable to outside attacks such as theft, viruses and hacking, particularly in systems connected to the Internet. However, the compact nature of electronic data also leaves sensitive financial information more vulnerable to theft from within. Computerized accounting is also more vulnerable to fraud, since electronic data can be altered undetectable after entering data.
