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Comparing Manual and Electronic Systems
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Despite the tremendous capabilities of computers, one should not conclude that electronic systems are always better. As with any choice, the costs and benefits of each alternative should he weighed before the choice is made. The following key points should be considered when evaluating and comparing manual and electronic systems.
Dollar Costs
The costs of bookkeepers’ salaries and manual accounting records must be compared to the costs of computer hardware and software. Electronic systems also have some hidden costs that must be considered, such as computer training of personnel and salary differences between bookkeepers and competent computer operators. Another consideration is the possibility that fewer individuals are needed to run an electronic system. As noted in the opening story about Safeguard Business Systems, with microcomputers widely available, as well as an abundance of user-friendly software packages, the manual system is losing its comparative advantage in even the smallest businesses.
Processing Speed
When the number of transactions is large, electronic systems offer real advantages. Thousands of transactions can be processed quickly by a computer, and high-speed printers can generate reports. However, delays in computer processing can occur because of power shortages and computer breakdowns.
Processing Errors
Unless a hardware failure occurs, the computer will not make a processing error. Both hardware and software controls generally ensure accurate processing
