What Are The Advantages And Disadvantages Of Computer Data Processing Over Manual Data Processing?

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· Faster and efficient in processing of information;
· Automatic generation of accounting documents like invoices, cheques and statement of account;
·With the larger reductions in the cost of hardware and software and availability of user-friendly accounting software package, it is relatively cheaper like maintaining a manual accounting system;
· More timely information can be produced;
· No more manual processing of the data- all automatically been posted to the various ledgers/accounts and
· Many types of useful reports can be generated for management to make decisions

The main advantages of computerizing the activities of business organization are as follows:

Speed: Computerisation helps in processing the data placed in several data files in no time. This is possible due to the high speed of computers for processing data and CPU of the computer works at the speed of electricity which is the highest ever attainable speed.
Accuracy: The data processed by the computer are highly accurate. The programs written on the system checks and controls data before and during processing. It detects invalid data and ensures high degree of accuracy and reliability of output reports.
Flexibility: The modern digital computers can be used for a variety of purposes. E.g. Online processing, multiprogramming etc.
Choice of Configuration: Wide ranges of peripherals are available for many computer systems, which allow business organization to select those which most suit its processing requirements.
Storage capacity: Large volumes of data can be conveniently stored, accessed and altered.
Management information: They can be used to provide useful information of management for control and decision making.
Data Processing: Computer has lifted the heavy data processing constraint with the manual system and has opened up new avenues for planning, control and data experimentation.
Volume: Computers can store volumes of data and can retrieve the desired information quickly. This is very useful in the areas like insurance, bank accounts etc where large number of documents is handled every day.
Database: Computer facilities the establishment of database. Such a database integrates data records and reduces data redundancy.
Reduction in paper work: The use of computers for data processing has helped the management of business organizations to cope with increasing problem of paper handling. The computers have speeded up the process and have eliminated the paper needs through the storage of data in elaborately constructed data bases and files.
Reduced cost: Though the initial investment for installing a computer is high, but it substantially reduces the cost of each of its transaction. Cost reduction occurs due to processing of huge data and record keeping.
Facilitates report preparation: Computer facilitates the preparation of various types of reports required by organizational executives for the purpose of decision making and control.
Reduce the space requirements: The use of computer for office activities reduces the requirements of office space which otherwise is required.
Reduces the manpower requirement: The number of persons required for performing various organizational activities will be reduced by using a computer system.
Increased ability to perform computations: Computers perform computations with a very high speed.
Diligence: Being a machine, it does not suffer from boredom, tiredness or lack of concentration, even if millions of computations are to be performed by a computer. It performs the calculations with same accuracy and speed.


· Power failure, computer viruses and hackers are the inherent problems of using computerized systems;
·Once data been input into the system, automatically the output are obtained hence the data being input needs to be validated for accuracy and completeness, we should not forget concept of GIGO (Garbage In(Input) Garbage out ( Output) and
· Accounting system not properly set up to meet the requirement of the business due to badly programmed or inappropriate software or hardware or personnel problems can caused more havoc and
· Danger of computer fraud if proper level of control and security whether internal and external are not properly been instituted.
Marie S parker Profile
Marie S parker , Marie S Parker is a Business Graduate and a passionate blogger and writer. She has worked with several high profile marketing agencies a pro, answered

the point when workplaces receive computerized and online mediums for their
documentation it supports their coordinated effort levels.

Paper records are always susceptible to human error. When
the employees are dealing with hundreds of paper files each day there are
chances or some mistakes. A tired employee may unintentionally file a document
in the wrong dossier or may fill the records wrongly. Computer data processing through document management systems prevent such human errors.

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