What are some of the disadvantages of computerized accounting?


Quick Answer

The disadvantages of computerized accounting include increased reliance on machines, heightened costs of development and training, greater costs for hiring personnel and the potential for security issues, notes Experience. Additionally, computerized accounting increases the chances of losing data to hardware and software failure, viruses and other technological problems.

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Full Answer

It is possible to input incorrect data or create programming errors, although human error also creates a problem for manual accounting methods. Issues like sabotage and corporate espionage, notes Yale University, exist for both types of accounting but in different ways. As an increasing number of businesses move to computerized accounting, the disadvantages become less serious. Companies that use computerized accounting software and processes must take steps to protect themselves from data loss or corruption.

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