Following are the limitations of Computerised Accounting System :

(1) Investment: A small firm cannot install a computer accounting system because of its high installation and maintenance cost. Many times, units invest huge amounts in selection of improper hardware and software and they are not able to take’ due advantage of such investment.

(2) Specialized operators : Computer system calls for highly specialized operators. The availability of such skilled personnel is very scarce and very costly.

(3) Fiear of unemployment: Computerisation can lead to increased unemployment as the accounting work with the help of automation requires small number of persons as compared to manual accounting. Therefore, the staff fears redundancy and show less interest in computers.

(4) Defective programmes : If software or computer programmes are defective, desired benefits thereof cannot be obtained.

(5) Changes in technology: Frequent changes take place in computer hardware and software. Therefore, computer hardware and software should be selected keeping in mind the long term need in such manner that the investment does not become useless in a very short time. Investment in outdated technology will result into frequent expenses to upgrade the same.

(6) Insufficient work : If the business unit has insufficient work of accounting, then this system becomes costly and cumbrous.