Computers & Technology

The Key Differences Between Manual And Computerized Accounting

Accounting is one of the primary functions of a business. Without proper accounting, you can’t analyze how much your company makes, spends, and saves. 

According to a survey, 82% of businesses are struggling due to negative cashflows. However, innovative accounting can improve this.

You can perform this crucial business function manually using a physical, hardcopy ledger or computer software. However, 64% of SMBs are using computerized methods of accounting.

Now the question is: which method is more efficient and effective? This debate has been going around because clearly, not everyone has switched to computerized methods of accounting. 

This article will shed some light on the primary differences between manual and computerized accounting, which method is more practical, and why several people still prefer manual accounting.  

Similarities Between Manual And Computerized Accounting

Debates on manual versus computerized accounting usually favor the latter. 

However, many people think that if your business is simple, you don’t need to get into the hassles of learning and handling accounting software.

Moreover, no matter how you record financial data, the accounting rules still apply the same way.

Another similarity between the two methods of accounting is the requirements. They remain the same, whether you keep a physical register or use a sophisticated computer program. This requirement involves: 

  • Accounting information should be authentic and in safe hands 
  • Ensure accounting records never get lost
  • Inaccuracy or errors are not acceptable 
  • Always consider practicalities 
  • Efficiency and timeliness 

Differences Between Manual And Computerized Accounting

The key differences between the two methods of accounting are:


Security is a big concern when it is about accounts. In manual accounting, the data is secure on paper. In contrast, computerized accounting utilizes the cloud to store data, making it accessible for certain credential information. As a result, the latter is more secure.  


Undoubtedly, computerized accounting has the upper hand in this one. Since humans are more prone to errors than machines, identifying mistakes can be a real pain in manual accounting. 


This is arguably the most significant difference between the two. A slow accounting system is nothing more than a drag and a burden. On the other hand, computerized accounting is several times faster than manual accounting.

The Bottom Line

There are a lot more differences between the two methods of accounting. However, those mentioned above clearly show that manual accounting isn’t a practical option in today’s technology-driven world.

However, if you deliberately want your competitors to get ahead of you or are no longer interested in growing your business, you should stick to manual accounting. Otherwise, computerized accounting is the way forward. 

Moreover, one should strive to make accounting faster, simpler, and more convenient by investing in the latest software and technology.