Advantages

• 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

Disadvantages

• 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.