A Computerised Accounting System (CAS) is an accounting system in which financial transactions are processed and maintained with the help of computers and accounting software.
Speed
- In CAS, a transaction is recorded only once and automatically posted to all ledgers, trial balance and final accounts instantly, whereas in manual accounting the same work is done slowly by hand in different books.
- CAS can process large volumes of data very quickly and generates reports in real-time for fast decisions, while manual accounting takes days or weeks to prepare reports.
Accuracy
- Automatic calculations and postings in CAS completely remove arithmetic, totalling and balancing errors, unlike manual accounting where such mistakes are very common.
- CAS has built-in validation checks and automatic reconciliation that ensure correct data processing, while manual system depends only on human care and is more prone to errors.
Reliability
- CAS follows consistent rules for every transaction and maintains a complete audit trail for easy tracing, whereas manual records are less consistent and difficult to trace.
- It provides easy data backup, recovery and reduces manipulation risk, making information more secure and dependable compared to manual records which can be easily lost or altered.
Thus, the Computerised Accounting System has truly revolutionised accounting by making it much faster, more accurate and highly reliable than the traditional manual system. However, its success depends on proper staff training and strong security measures.
