Aim of both manual and computerized accounting is to record, classify and summarize the accounting transactions. Both are used for preparing financial statements but the difference in the system. We can write the difference between manual accounting and computerized accounting on the following basis.
|Basis of Difference|
Manual accounting is the system in which we keep physical register of journal and ledger for keeping the records of each transaction.
|In this system of accounting, we use computer and different accounting software for digital record of each transaction.|
|2. Calculation||In manual accounting, all calculation of adding and subtracting are done manually. For example, we find the balance of any ledger account. We will calculate the debit and credit side and then we will find its difference for showing balance.||In computerized accounting, our duty is to record the transactions manually in the database. All the calculations are done by computer system. We need not to calculate each account's balance, it is calculated automatically by computerized accounting system|
|3. Ledger Accounts||In manual accounting, we check the journal and then we transfer figures to related accounts' debit or credit side through manual posting.||Computerized accounting system will automatically process the system and will make all the accounts ledgers because we have pass the voucher entries under its respected ledger account.|
|4. Trial Balance|| |
In this system of accounting, we have to collect the information of the balances of all accounts in our ledger, on this basis, we have prepared the trial balance manually.
|Our computerized accounting system will produce trial balance automatically.|
|5. Adjustment Entries Record||Both adjustment journal entries and its posting in the ledger accounts will be done manually one by one.||Only adjustment entries will pass in the computerized accounting system, posting in the ledger accounts will be done automatically.|
|6. Financial Statements||We have to make the financial statements manually by careful transferring trial balance's figures in income statement and balance sheet.||We need not prepare financial statement manually, financial statements will become automatically. It will also change after each voucher entry in the system which facility is not available in the manual accounting system.|