See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/374338089

Manual Accounting System And Computerized Accounting System

Article · August 2023

CITATIONS READS

0 2,340

1 author:

Kuicthok Yak Deng

Lincoln University College
4 PUBLICATIONS 3 CITATIONS

SEE PROFILE

All content following this page was uploaded by Kuicthok Yak Deng on 01 October 2023.

The user has requested enhancement of the downloaded file.

Journal of Namibian Studies, 35 S1 (2023): 4644-4649 ISSN: 2197-5523 (online)

Manual Accounting System And Computerized

Accounting System

Kuicthok Yak Deng Tudeal

PhD Candidate, Faculty of Business and Accountancy, Lincoln University

College, Selangor, Malaysia
kuicthok.phd@lincoln.edu.my

Abstract
This paper has been conducted using a questionnaire completed by
staff of businesses, non-governmental institutions, and United
Nations agencies in South Sudan. This study compares manual
versus automated accounting methods to determine which is a
better option than the other and recommend it to companies and
organizations. The better option for institutions to monitor and
report on financial transactions has to be suggested from the two
accounting systems. Computerized accounting has been found to
be the most effective because it processes payments and reports
more quickly; data loss and fraud are quite likely due to the
frequency of internet crimes done by those trying to profit. Manual
accounting is seen as not effective in recording, processing, and
data reporting, a computerized accounting system has been
recommended; however, upgrading has to be a safe technique to
manage financial payments and receipts without interference with
accounting work. Manual accounting is limited to the precise books
needed to complete and support each operation. It is impossible to
have the data everywhere and at any time. This study will make
clear why certain organizations valued manual labor over
automation while others did not, the most effective approach
would be suggested above the others along with an explanation of
why it is most likely to be used.

Index Terms— manual accounting, automated accounting,

system.

Introduction
The accounting system dates back to Mesopotamian Egyptian and
Babylonian civilizations, making it as old as money itself. The Roman
empires administration kept meticulous financial records. The
contemporary accounting system was created in the 19th century (Jason,
2022) and has advanced quickly with an increasing demand for
improvement as firms become more and more globalized. Accounting

4644
Journal of Namibian Studies, 35 S1 (2023): 4644-4649 ISSN: 2197-5523 (online)

includes so many supporting systems that make recording and reporting

easier accounting transactions are documented in a timely manner
whether they are entered manually on paper or electronically to aid in
reporting and organizing transactions for particular needs.
With the development of technology in recent years there have been
some additional difficulties in adapting and duplicating systems for ease
of use. Every organization needs accounting but it is not just used for
documenting financial data as has historically been thought of, it is also
used for taking decisions. As accounting developed, large firms felt the
need to automate their accounting functions which led to the current
situation where accounting is fighting against the digitalization of all
institutions. We will discuss both manual and digital accounting systems
in this paper.
The Manual Accounting System
Manual Accounting is a traditional paper-based system where accounting
data is recorded in a paper journal and ledger registers, vouchers, books
are used to retain, organize and analyze accounting transactions of a
company. It is mostly used in small businesses operated by a few people,
such as sole proprietors, shopkeepers, etc. to maintain the record of the
company transactions and that is because of its lower cost in use and
implementation (Surbhi, 2018).
The manual accounting has been acknowledged to be the first accounting
system for recording transactions on papers and ledger books before the
improvement of the current accounting technology.
Too much personnel time is taken when recording or reporting, but
verification takes more time than documenting. Some errors easily occur,
but detecting them for correction is not easy due to the volume of
transactions incurred or the lack of adequate experience of the personnel
who worked on them. Manual accounting was one of the ancient systems
for documenting and disclosing financial data to internal and external
users.
Advantages of Manual Accounting
1. Cheap workforce
2. Reliable
3. Independence from computers and versatile phones
4. Sufficiency of talented employees
Drawbacks of Manual Accounting
1. Slow in recording transactions
2. Record it day by day in all significant account books/ledgers.
3. Difficulty in inside control and reporting

4645
Journal of Namibian Studies, 35 S1 (2023): 4644-4649 ISSN: 2197-5523 (online)

4. More accountants are required for the isolation of the duties.

5. Human blunders are common when more exchanges occur.
6. Computation of figures isn't simple when there are more exchanges
included.
The Computerized Accounting System
Computerized accounting can be depicted as the bookkeeping framework
that employments the computer framework and pre-packaged,
customized or custom fitted accounting program, to keep a record of
money related exchanges and produce monetary articulations, for
examination (Surbhi S, 2018).
The Advantages of Computerized Accounting
1. Efficient and portable reporting.
2. Reliable and no tedious work.
3. Accuracy
4. Easy within the generation of reports and usage of inner control
aspects.
5. Restoration of records and backup
6. Accessible by authorized officials without the ought to show books
or ledgers
7. It requires less time than people do to perform bookkeeping tasks.
8. Real-time data
9. Reduce hazard of information errors
Drawbacks of Computerized Bookkeeping
1. High costs for framework setup, utilize, and implementation
2. Adequate preparing is required for the personnel.
3. High fetched of working personnel
4. Dependence on computers and versatile phones
5. Dependence on power
6. Reliance on another company since most businesses cannot create
their own
7. Infection by an infection 8. Cost of overhauling the framework
The Literature Review
The ledger was the first accounting system, it only requires paper and
pencils that are inexpensive to buy and use, so getting away from it can
be difficult for some businesses. According to True Tamlin, manual

4646
Journal of Namibian Studies, 35 S1 (2023): 4644-4649 ISSN: 2197-5523 (online)

accounting is generally preferred for small and medium-sized businesses

and can be used without any problems. In contrast, large companies use
complex accounting systems that are expensive but work beyond
anyone's expectations.
Based on the above claim, it mentions the many advantages of manual
accounting, including cheap labor, independence of machinery,
availability of skilled workers, reliability and not working every day.
However, it appears to be slower than computerized accounting due to
its mobile broadcasting capabilities.
Accounting computerization has been working for decades, but due to the
struggle to eliminate the old accounting system, its entire functioning is
facing more problems.
Computerized accounting has advantages over manual accounting
because it is based on machine-managed systems. Before the merger,
more time is needed to update and prepare financial statements, so most
financial statements are prepared quarterly or annually, giving employees
time to prepare reports.
Sometimes companies that use ledgers need additional staff on the
reporting side to meet deadlines. Notifications are just a click away today;
when it's a job, you don't need to type the date and description again as
it should be in the system.
In today's world, many people need digitalization. However, going for it is
not easy due to the costs associated with it and the pressure from those
working in accounting that the ledger takes.
Employees refuse to leave some companies for the digital transformation
that many employees seek. After customers leave school, they look for
more convenient services that can be obtained anytime and anywhere.
Khatabook realized that the risk of computer use of the ledger is higher
due to the introduction of human error. In contrast, automated
accounting has less risk of errors. Errors occur only when there are errors
in accounting or when using standards.
Which means that computerized accounting is much better than
information books on do's and don'ts. The idea is that every business or
company is designed to grow; they are all designed to expand to achieve
their goals.
In computerized accounting, data and information can be sent quickly via
e-mail, which does not have a ledger to send financial information and
can meet security issues if accepted by criminals (Supriyo Sir, 2022).
The Geeksforgeeks.org website states that computerized accounting is a
very fast process because everything is systematically automated using
accounting software. It needs a computer and an operator to perform
these tasks. There is little or no chance of any error, and the software does

4647
Journal of Namibian Studies, 35 S1 (2023): 4644-4649 ISSN: 2197-5523 (online)

not have to do with automatic input, editing of frames and calculations

etc. As it is designed to be automatic, it gives clear output.
In a letter from staff (reference.com, 2020), most businesses today use
computerized accounting, but some companies still prefer manual
processes. Manual methods are cheaper because there is no need for
computer equipment, software and training costs for employees. A
manual system may be more secure because it does not use the internet
to send information to accountants or the IRS. Manual accounting
systems are prone to errors and do not use software to provide accurate
calculations. Creating financial records takes more time and effort, and
records without backup are likely to be destroyed by fire or flood. It takes
a long time to prepare tax returns when using the manual process. The
guide spends many person-hours collecting the necessary information
while conducting the review. The guide is best for small businesses, but
not suitable for large-budget companies. Using the books requires
accountants to know more about accounting principles than employees
who use accounting software. This makes it difficult to find the right staff
to keep the books because fewer companies use ledgers and more
computers.
Recommendations and Conclusion
Given that not only accounting but also the world is moving towards
digital, it would be great if accounting, the lifeblood of an organization,
could be digitized to deliver Good service and usefulness.
Many computer accounting authors have pointed out that the entire
financial system must work so that users and stakeholders can benefit
from their work.
Businesses and organizations should prioritize faster delivery of services
to meet reduced demand due to limited budgets.
The decision to automate the entire process is independent of the size of
the company. This is because human activities are slow without the help
of machines.

Bibliography
1. Difference between manual and computerized accounting; https://khata
book.com/blog/difference-between-manual-and-computerized-
accounting/
2. Difference between manual and computerized accounting; https://
commercelesson.in/difference-between-manual-accounting-and-
computerised-accounting/
3. Difference between manual and computerized accounting; https://www.
geeksforgeeks.org/difference-between-manual-and-computerised-
accounting/

4648
 Journal of Namibian Studies, 35 S1 (2023): 4644-4649 ISSN: 2197-5523 (online)

4. True Tamplin, 2021 Computerized Accounting; https://learn.finance

strategists.com/explanation/accounting-concepts-and-principles/
computerized-accounting/
5. Tommy Watts, 2022; University of Delaware, what is manual accounting;
https://study.com/learn/lesson/manual-accounting-system-uses-
importance.html’
6. Amahalu Ndubuisi, Abiahu Chidpziem, Obi Chinyere; Comparative Analysis
of Computerized Accounting System and Manual Accounting System of
Quoted Microfinance Banks (MFBs) in Nigeria ternational Journal of
Academic Research in Accounting, Finance and Management Sciences Vol.
7, No.2, April 2017, pp. 30–43
7. Piyush Yadav, 2022; What is Manual Accounting? | Definition, Uses and
Working; https://askanydifference.com/what-is-manual-accounting/
8. Indeed Editorial Team, 2021; Types of Accounting Systems: Software vs.
Manual; https://www.indeed.com/career-advice/career-development/
accounting-systems
9. Akshita Kool, 2022; manual accounting system and computerized
accounting system; Journal of Emerging Technologies and Innovative
Research (JETIR), Volume 9, Issue 2
10. Surbhi S, 2018; Difference between manual and computerized accounting;
https://keydifferences.com/difference-between-manual-and-
computerized-accounting.html
11. https://www.reference.com/business-finance/manual-accounting-system-
61286314c3a14b79?utm_content=params%3Ao%3D740005%26ad%3Ddir
N%26qo%3DserpIndex&ueid=9b25f2be-0489-497d-97eb-75d6621446de

4649

View publication stats