| Difference | Traditional Manual System | Computerised Accounting System |
| 1. Meaning | Manual accounting is the system in which we keep physical register of journal and ledger for keeping the records of each transaction. | In Computerised system of accounting, we use computer and different accounting software for digital record of each transaction. |
| 2. Recording transaction | Transactions are recorded in manual books of account like journal and subsidiary books. | Transactions are recorded by using computers and accounting software like Tally or Profit or any other. |
| 3. Posting | Recorded transaction have to be posted in different ledger accounts manually. | Recorded transactions are processed by accounting software and posting into respective ledger account is automatically done. |
| 4. Trial balance | Trial balance is to be prepared after collecting the necessary balance of each ledger account. | Trial balance is automatically prepared using accounting software. |
| 5. Financial statements | Financial statements like Profit and Loss A/’c. Balance Sheet, Cash flow statement, etc. are prepared manually. | With the help of accounting software, financial statements like Profit and Loss A/c, Balance Sheet, Cash flow statement, etc. are automatically prepared. |
| 6. Cleanlines and Accuracy | In this system, cleanliness and accuracy are less maintained. | In this system, cleanliness and accuracy are more maintained. |
| 7. Rectification of errors | Rectification entries are required to be passed for rectification of errors. | With the help of accounting software, any wrong entry can be rectified or deleted easily without passing rectification entry. |
| 8. Opening balances | After close of the year, every year, in the beginning of year, opening balances are required to be carried forward in the new books of accounts. | There is no need for recording opening balances as the accounting software automatically stores information about the closing balances in its data base. |
| 9. Title of accounts and Grouping of accounts | In this system, title of each account is manually decided and pre-defined groups of accounts also have to be designed manually. | In this system, accounting software gives ready-made groups of accounts and ledger accounts are opened under these groups. However, title of each account is to be manually decided. |
| 10. Time and Speed | This system does take time to prepare accounts. | With the help of accounting software, accounts are prepared quickly and in less time. |
| 11. Quick information | In this system, accounting informations and reports are not received quickly. | Accounting informations and reports are received quickly by using accounting software. |
| 12. Calculation | In manual accounting, all calculations of adding and subtracting are done manually. | In computerized accounting, all the calculations are done by computer system. |
| 13.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. |
