Computers are used in accounting for storing and analyzing financial data, automation, accuracy, data access and reliability. Other uses for computers in accounting include scalability, speed, security, cost effectiveness and visual representation.
Accounting software performs calculations for the accountant and eliminates monotonous and time-consuming processes that are associated with manual accounting. Using accounting software to perform calculations also reduces the risk of error and inaccuracy and produces highly reliable financial statements.
Accounting software and online accounting make it possible for people to securely access accounting data from various locations outside the office. Computerized accounting is scalable to the size of a company and assists in reviewing and finding data as a company's accounting increases and becomes more complex.
Accounting software can produce reports and statements instantly, making computer accounting much faster than manual accounting. The ability to electronically save and store data at off-site locations increases security and reduces the risk of data loss due to disasters. Systems can be restored on other computers quickly and easily.
Because work and time is saved by utilizing computers in accounting, money is also saved when compared to manual accounting. Computers also provide the ability to view reports in different formats and quickly generate charts and tables.