Importance of Computer in Accounting:
1. High Speed: The accounting speed of a computer is much faster than that of a human being.
2. High Reliability: The extent reliability of the information generated by a computer is immense. The reliability remains the same despite the volume of the work whereas the reliability of a human work can be doubtful in case of voluminous work.
3. Accuracy: The accuracy of a computer cannot be doubted once a particular program is feed. All the result based on such program would be 100% accurate, whereas the result produced by a human being can very due to fatigue, carelessness etc.
4. Updation of Information: All the related records in a computer get automatically updated once any information is punched whereas in case of manual accounts all the records will have to be altered one by one.
5. Timely Reporting : The computerized accounting system facilitates the generation of the management information system (MIS) reports at a very high speed which enables the management to take quick decision. Whereas the generation of the same reports manually is very time consuming and less accurate.
6. Storage and Retrieval: It enables the users to stores data in a manner that does not require a large amount of physical space which is in the form of hard disks, CD ROM’s, floppies that occupy a fraction of physical space as compared of books of accounts in the form of ledger journal and other accounting registers.
7. Security of Data: Under computerized accounting the accounting data is safer in comparison of manual system under computerized system secrecy of data can be maintained by using a password which means only authorized persons will have access to the data.
