Navigating the Importance of Computerized Accounting Systems in the Philippines
In the ever-evolving landscape of business, financial management is critical to success. One of the most significant decisions a company can make is choosing between a manual accounting system and a computerized accounting system. In this blog, IT Group, Inc. and its solution partner, Oracle NetSuite, weigh the pros and cons of these two systems and how they can impact your overall business.
Before we delve from traditional to modern-day accounting, let us define accounting first and its importance in an organization. According to the Southern Careers Institute, accounting is the “language of business” that communicates through financial information. “This vital function enables stakeholders, such as investors, creditors, and management, to understand a company’s financial performance and position,” they said.
What is a Manual Accounting System?
Manual Accounting and its Pros and Cons
Manual accounting offers certain advantages, especially for small businesses and specific situations, such as simplicity in understanding the processes, cost-efficient than purchasing and maintaining accounting software, no tech dependency, customizable, and immune to cyber threats as it offers traditional security by storing physical information. Manual accounting systems are simple and suitable for small businesses. But as the business grows, the traditional processes become liabilities more than assets. This includes limited automation, time-consuming labor-intensive processes, prone to errors, limited accessibility, and no remote access.
Shifting Toward the Computerized Accounting Systems
Meanwhile, the computerized accounting system is a software-based application that automates and streamlines financial record-keeping and management processes for businesses and organizations. It replaces traditional manual accounting methods with digital tools and technologies to efficiently handle financial transactions, record-keeping, reporting, analysis, etc.
Computerized Accounting and its Pros and Cons
Computerized accounting provides automated calculations and data entry that are consistent and accurate. It can also automate repetitive tasks and give time for more strategic financial analysis, maximizing efficiency in overall financial and operational processes. With modern-day accounting, you’ll have a secure audit trail with accurate reports based on real-time data, bringing scalability, transparency, and visibility to your organization.
On top of it, accounting systems like Oracle NetSuite Cloud ERP also offer features to help businesses comply with tax regulations like the BIR Computer Accounting System or BIR CAS and E-Invoicing in the Philippines, for example, and can integrate seamlessly with other business software. One of the advancements of computerized accounting—partnered with the right IT and software companies — is that businesses can analyze data smoothly, track performances, and compare financial results without needing manual paperwork. It means less manual recording, less carbon footprint, and more positive environmental impact through sustainability. The real challenge, however, for modern-day accounting is the transition from manual to automated accounting systems.
Digital Transformation with IT Group, Inc. and Oracle NetSuite
It is known for its comprehensive suite of tools designed to streamline various aspects of business operations. Overall, a computerized accounting system simplifies and accelerates financial management, reduces the risk of errors, and provides real-time access to financial data. It is a powerful tool for businesses seeking efficient and accurate financial record-keeping and reporting.
Learn more about how the ITG and #1 Cloud ERP, Oracle NetSuite, can guide you in transitioning from manual to automated accounting.
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