Question

Mention any three limitations of computerised accounting system.

Answer 1

1. Heavy cost of installation: Computer hardware needs replacement and software needs to be updated from time to time with the availability of newer versions.
2. Cost of training: To ensure effective and efficient use of a computerized system of accounting, newer versions of hardware and software are to be introduced. These require special training and hence, cost is incurred to train the staff personnel.
3. Fear of unemployment: On account of the introduction of computerised accounting system, the employees feel insecure that they may lose employment and show less interest in computer-related work.
4. Disruption of work: When a computerised system is introduced, the existing process of accounting and other works are interrupted. This results in certain changes in the working environment.
5. System failure: The danger of a system crashing due to some failure in hardware can lead to subsequent interruption of work. This is more when no back-up is made.