Manual System of Accounts PayableIn the age of computers and inventions, gone are those days when manual accounting was the need of the hour. Instead, the whole world is getting automated now, and so is accounting. Nowadays, the cloud system of accounting is quickly replacing the manual accounting system. This is mainly due to the following demerits of a manual system:

1. Late Payment of Debts

  • The manual system of accounts payable is tedious. It accumulates a lot of work by the end of the day. If accounts are not maintained in time, you will fail to get an exact figure of your debts on time, thus resulting to delayed payments. You may also be subjected to penalties and interest charges. All the more, certain allocated discounts will also get cancelled for such late payments.
  • In the business world, such late payments of debts scare away suppliers as they no longer trust your business engagement. In worst scenarios, suppliers may refuse to conduct further business with you. Hence, adopting a cloud system that ensures quick availability of figures is a feasible solution.

2. Poor Documentation of Accounting Information

  • The manual accounts payable system results into stacks and stacks of paperwork and documents. Maintenance of such documents is extremely inconvenient and troublesome. To conclude, it is a poor way of storing transaction information. It is highly risky. If you end up losing a single piece of information, it can lead you to tremendous hardships in tracking down your actual debts and receivables.
  • The above problem can be easily solved by adopting the cloud computing system. By adopting this system, your accounting system will get completely automated. You no longer will have to handle and maintain huge number of papers. Everything can be easily created as well as accessed. Also, you can easily create a backup of your digital information. Thus, there is no need to worry about losing your data anymore.

3. Safety Risks

  • cloud accounting systemManual accounting system does not have adequate safety measures. Anybody who is next to the books of accounts can easily tamper with it. This can lead to several malpractices in the organization. For instance, it is very common to see an employee increasing debts in the books of accounts so that he can benefit from such a fake debt. However, this can be easily avoided by adopting the cloud system of accounting.
  • The cloud computing system does not leave any room for corruption of your accounting data as all information is highly protected with encrypted passwords and other forms of digital security. Your data cannot be accessed or tampered by any third party without your permission.

4. Long Hours for Processing Information

  • Manual accounting system takes a lot of time for processing a particular piece of information. This can lead to delays in payment of dues. In point number one, we have already discussed about various repercussions of making a delayed payment.
  • Hence, to avoid this, it is advisable to adopt a cloud system of accounting where all required information is available in a click of a button.

5. High Cost

  • Maintenance of a manual accounting system demands a huge amount of labour. Higher the amount of labour, higher will be the cost of salaries you pay them.
  • However, this is not the case in a cloud accounting system. This system demands minimum labour and is also relatively easier to handle.


Thus, owing to the above demerits of a manual accounting system, cloud accounting system definitely poses a better option. For further assistance regarding an ideal accounting system for payables, please visit