What are the advantages of electronic data processing?


Quick Answer

The advantages of electronic data processing include speed, efficiency, reduced labor, accuracy and reduced costs. In terms of speed, information stored and managed through an electronic data processing system can be retrieved almost without delay on the Internet or on an internal network.

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Full Answer

When it comes to efficiency, documents, such as statements and reports, can be generated through electronic data processing, automatically and quickly. It is also capable of storing large amounts of data in a form that it is easily retrievable.

This system also reduces labor. In manual data entry, there is always the issue of repeated entries; however, with electronic data processing, such mistakes are reduced or completely eliminated.

Another advantage is that data processing operations are executed automatically; therefore, human intervention is not required. Furthermore, an electronic data processing system reduces the cost of managing data.

Electronic data processing is also referred to as computerized data processing and it is a method of processing data. Electronic data processing systems are designed to increase productivity and improve the quality of work. Usually, electronic data processing goes through three stages. The first stage involves inputting collected data into the system, via file upload or keyboarding. In the second stage the data is manipulated, and in the third stage the transformed data is outputted.

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