Limitations of Computerized Accounting System : Despite many advantages offered by a computerized accounting system, it is not free from limitations.
Various limitations of a computerized accounting system are as follows:
1. Staff Opposition : Introduction of computers lead to a lot of retrenchment as well as complication of activities which result in resistance of the staff.
2. High Cost of Training : The sophisticated computerized accounting packages generally require specialized staff personal, which leads to heavy amount of cost of training.
3. Adverse Effects on Health : The excessive use of computers may lead to various health problems, like eye strains, back aches, muscular pains, etc.
4. Security Problems : Fraud and embezzlement are usually committed on a computerized accounting system through alteration of data. People responsible for tampering of data cannot be located in a computerized setup whereas the same can be easily done in case of manual records.
5. System Failure : System failure due to hardware failures, attack by viruses, system down etc. are the usual problems faced by a computerized system.
6. Wastage of Time: A lot of significant time is wasted when an organisation switches over to the computerized accounting system due to the changes in the working environment and other adjustments.
7. Lot of Errors: The computer software is unable to detect unknown and unanticipated errors.