How does an accounting software out-perform manual accounting methods

Bookkeeping, the monetary exchanges are recorded, handled and displayed to create budgetary explanations, that is valuable to the perusers, in deciding. Generally, bookkeeping is done physically, by a prepared bookkeeper, with the utilization of registers, account books, vouchers and so on. However, with the rising innovation, these days, mechanized bookkeeping is in vogue, because of its precision, accommodation and speed.

Both manual and computerized system is based on the same principles, conventions and concept of accounting. However, they differ only in their mechanism, in the sense that Accounting uses pen and paper, to record transactions, whereas computerized accounting makes use of computers and internet, to enter transactions electronically.

In this article, you can find the substantial differences between manual and computerized accounting.

Content: Manual Vs Computerized Accounting

1. Chart


3.Key Differences


Examination Chart :



Meaning Manual Accounting is an arrangement of bookkeeping that utilizations physical registers and record books, for keeping money related records.


Computerized Accounting is a bookkeeping framework that uses a bookkeeping programming, for recording monetary exchanges electronically.
Recording Recording is conceivable through book of unique entry. Data content is recorded in redone database.
Backup Not possible Entries of exchanges can be spared and went down.


Calculation framework



All the computation is performed manually. Only information input is required, the estimations are performed by PC.
Speed Slow Comparatively speedier.


Changing entries                                                        It is made for correction of errors.                                                        It can't be made for amendment of mistakes.


It is made for correction of errors. It can't be made for amendment of mistakes.
Trial Balance Prepared when necessary. Instant trial adjust is given on regular routine.
Money related Statement It is set up toward the finish of the period, or quarter. It is given at the snap of catch.



Meaning of Manual Accounting

Manual Accounting, as the name implies, is the paper-based bookkeeping framework, in which diary and record registers, vouchers, account books are utilized to store, arrange and dissect money related exchanges of an association. Usually utilized by little businesspeople, for example, sole proprietors, retailers, and so on to keep up the record of the business exchanges, because of lower cost.

One of the upsides of the manual bookkeeping framework is its simple openness. It is likewise described by classification, which makes the touchy data hacking free. By and by, manual records must be arranged effectively if the bookkeeper has great information of accounting and bookkeeping.

Additionally, human blunder, for example, wrong chronicle of the exchange, the oversight of the exchange, figure transposition et cetera, is probably going to happen while the readiness of manual records which can't be overlooked.

Meaning of Computerized Accounting

Electronic Accounting can be depicted as the bookkeeping framework that uses the PC framework and pre-bundled, redid or custom fitted bookkeeping programming, to keep a record of monetary exchanges and create budgetary proclamations, for investigation.

Electronic Accounting framework depends on the idea of a database. The bookkeeping database is efficiently kept up, with dynamic interface wherein bookkeeping application projects and revealing framework are utilized. The two essential basics are:

Bookkeeping system: The structure involves standards and gathering structure for looking after records.

Working method: There is a legitimate methodology for working the framework in order to store and process the information.

Further, it requires front-end interface, back-end database, database handling and revealing framework to store information in a database-situated application.

The benefits of modernized bookkeeping depend on its speed, exactness, unwavering quality,                              decipherability, a la mode data and reports and so forth.

Key Differences Between Manual and Computerized Accounting


The distinction amongst manual and modernized bookkeeping is clarified underneath in focuses:

1.Manual Accounting alludes to the bookkeeping technique in which physical registers for diary and record, vouchers and record books are utilized to keep a record of the money related exchanges. Then again, modernized bookkeeping infers the technique for bookkeeping, which utilizes a bookkeeping programming or bundle, to record the fiscal exchanges, which happen to an association.

2.In manual bookkeeping, recording of the exchange should be possible through the book of unique passage, i.e. diary day book. On the other hand, in electronic bookkeeping, the exchanges are recorded as information, in the redid database.

3.In manual bookkeeping, every one of the counts, i.e. expansion, subtraction, and so forth as for the exchanges are performed physically. Interestingly, in modernized bookkeeping, there is no compelling reason to perform computations, as the estimations are performed by the PC naturally.

4.In manual bookkeeping, a man stays included constantly, with the records, to enter and refresh exchanges, which is dull and tedious as well. As against, in mechanized bookkeeping, once the exchange is entered, it is naturally refreshed in every one of the records to which it relates and in this way, the procedure is similarly speedier.

5.In manual bookkeeping technique, if there happens a mistake while entering and posting the exchange in the books of records, at that point alteration sections can be passed, for getting exact outcomes.

6.In addition, modification passages are likewise made to conform to the coordinating rule, i.e. the costs of the bookkeeping time frame should coordinate the separate incomes. Then again, in electronic bookkeeping, to consent to the coordinating standards diary and vouchers are readied, however modifications passages are not passed for correction of mistake unless the blunder is a blunder of rule.

7.One of the benefits of electronic bookkeeping which manual bookkeeping needs is that in manual bookkeeping there is no real way to move down every one of the sections and money related articulations, however in modernized bookkeeping, the bookkeeping records can be spared and moved down.

8.In a manual bookkeeping framework, the money related articulation is set up toward the finish of the period, i.e. monetary year. Actually, the money related articulation is given at the snap of a catch, in the mechanized bookkeeping framework.


As the quantity of business exchanges builds, it is hard to oversee accounts physically, as it sets aside a great deal of opportunity to refresh a solitary exchange in every one of the records that it influences. In automated bookkeeping, various restrictions of the Accounting have been expelled. At whatever point the exchanges happen, the section is made and it is refreshed consequently in every one of the records that it influences, in the modernized bookkeeping.

Related Articles