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Disadvantages Of Traditional Accounting System

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The world is changing rapidly. The traditional manual system is going to be improved into technology based modern system thoroughly. Now-a-days, it is not possible to think about the accounting without technology. Traditional accounting system refers to the system of recording the accounting transactions according to the method recommended by the father of accounting Luca De Pacioli. The traditional accounting information system is based on what is typically called the accounting cycle and is based on the accounting equation. Although the ideas documented by Pacioli have been adapted over the years, the essence of his original suggestion remains constant. The main weakness of the traditional accounting is an absence of integration across …show more content…

But maximum people are not conscious of this. He wrote the important works as “Summa de Arithmetica, Geometria, Proportioni et Proprotionality.” It was written in 1494. He also wrote “Divina Proportione.” And it was written in 1509. He was not an innovator, but a translator and compiler of popular books. “De Computis et Scripturis” was the part of the “Summa de Arithmetica, Geometria, Proportioni et Proprotionality.” In this part, the double entry system was described with the system of bookkeeping. It was published in a large variety of languages and distributed in numerous countries in the 16th to 19th centuries (Hollander et.al. …show more content…

The cycle is repeated each reporting period. The first there steps in the accounting cycle require the largest amount of time and effort, and occur continuously throughout the period. The frequency of step 3, posting, depends on the volume and nature of the recorded transactions. For example, firms with many daily cash transactions often post to the cash account daily. Steps 4 through 9 generally occur only at the fiscal year-end. Step 10, reversing entries, is optional and occurs at the beginning of the next accounting period (Hollander et al. 2000). Weaknesses of Traditional Accounting System There are so many weaknesses of the traditional accounting system. Traditional accounting system is not able to maintain the accounting transactions efficiently and effectively. The professionals, who want to provide business solutions, are not capable to provide efficient and effective business solutions by traditional accounting. The main weakness of the traditional accounting is a lack of integration across functional areas of the organization. Many organizations have separate systems for each functional area. This duplicates the number of journal entries and the amount of data stored within the systems (Cherrington

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