In manual Bookkeeping each entry has to be entered separately in various books of accounts, whereas the software automatically enters the entry into the concerned account. As soon as the transaction is entered, automatic posting to the respective accounts is done and so the accounts are automatically updated. A user can key in transactions which are automatically treated as debit and credit balances. As a result, there is a huge reduction of errors. A unique code number is given to each and every account which differentiates between two accounts. This helps in easy handling of accounts for people who have very limited knowledge of accounts. The trial balance can be viewed as a single entry. Hence, it is very helpful for decision-making, as there is fast automatic generation of reports. Backups at regular intervals are another important benefit of Bookkeeping software.
A good software package must be user-friendly and flexible. It must be capable of generating required reports. Facilities like online queries, validation of transactions and error-searching must be provided. Integration with stock, inventory, cost and financial accounting must be available. It must be of modular structure, for a lay person to operate the package. Passwords and other security measures must be there.
Thus computer has brought its revolution in the accounts department, too. The company who will upgrade will automatically suffer.