Your firm of accountants has been the auditors of Leather Merchants Limited, a company that exports both raw and semi-finished leather products to European and Asian markets. The company has decided to introduce a comprehensive computer system to manage its accounting and administrative functions. Required: Identify and explain the benefits that the company would derive as a result of putting in place a comprehensive computerized accounting system

Benefits to client using a computerized accounting system

i. Computerization gives rise to a strong internal control system, which prevents chances of error and frauds in an organization. (Possible if system is properly designed and implemented).
ii. Computerization facilitates preparation of management reports that are designed to meet the information needs of all employees. This assists in decision-making and in running the affairs of the organisation more efficiently.

iii. It reduces overtime costs (as accounts are prepared much faster), which are associated with manual accounting system.
iv. Computers produce clear and neat work particularly in computations, ledgers, records and financial statements.
v. Computers enhance arithmetic accuracy (as human error is eliminated) thus leading to more accurate accounting records.

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