Computerised Accounting System • Motivation and Employees Interest : The computer system requires a specialised training of staff, which makes them feel more valued. This motivates them to develop interest in the job. However, it may also cause resistance when we switch over from a manual system to a computer system. Test Your Understanding - I .
The framework of storage and processing of data is called as ........ . Database is implemented using ........ .
A sequence of actions taken to transform the data into decision useful information is called....... . An appropriate accounting software for a small business organisation having only one user and single office location would be ........ .
Limitations of Computerised Accounting System The main limitations emerge out of the environment in which the computerised accounting system is made to operate. These limitations are as given below ; • Cost of Training : The sophisticated computerised accounting packages generally require specialised staff personnel. As a result, a huge training costs are incurred to understand the use of hardware and software on a continuous basis because newer types of hardware and software are acquired to ensure efficient and effective use of computerised accounting systems. • Staff Opposition : Whenever the accounting system is computerised, there is a significant degree of resistance from the existing accounting staff, partly because of the fear that they shall be made redundant and largely because of the perception that they shall be less important to the organisation.
• Disruption : The accounting processes suffer a significant loss of work time when an organisation switches over to the computerised accounting system. This is due to changes in the working environment that requires accounting staff to adapt to new systems and procedures. • System Failure : The danger of the system crashing due to hardware failures and the subsequent loss of work is a serious limitation of computerised accounting system. However, providing for back-up arrangements can obviate this limitation.
Software damage and failure may occur due to attacks by viruses. This is of particular relevance to accounting systems that extensively use Internet facility for their online operations. No full- proof solutions are available as of now to tackle the menace of attacks on software by viruses. © NCERT not to be republished