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Data Processing Methods

The document discusses manual and electronic methods of data processing. It defines data processing and describes how the manual method involves processing data without machines using pen and paper. Some advantages of the manual method are that it is cheaper and does not require electricity, while disadvantages include being slow, labor intensive, and prone to errors.

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Richard Tshumah
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Download as PDF, TXT or read online on Scribd
515 views

Data Processing Methods

The document discusses manual and electronic methods of data processing. It defines data processing and describes how the manual method involves processing data without machines using pen and paper. Some advantages of the manual method are that it is cheaper and does not require electricity, while disadvantages include being slow, labor intensive, and prone to errors.

Uploaded by

Richard Tshumah
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Sir-kuru 0773359000

Data Processing
Manual Method Of Data Processing
BY THE END OF THIS SUB-TOPIC, LEARNERS SHOULD BE ABLE TO:
 Define data processing terms.
 State the methods used to process accounting data.
 Explain the manual method of processing data.
 List the advantages and disadvantages of manual methods of processing data.
 Apply manual methods in processing data.
Data processing
 Data processing refers to the conversion of raw data to usable or meaningful information.
 In accounting, data can be processed using manual or electronic (or mechanical) methods.
 In some cases, manual and electronic methods are combined at different stages when
processing business information. For example, a calculator can be used to enhance
manual data processing.
Manual data processing
 Manual data processing is the conversion of raw data into meaningful information using
manual means such as pen and paper.
 Manual methods of data processing do not use any machines in processing data.
 Under this data processing method, all calculations and logical operations are done
manually and data is moved from one point to another manually.
 In Zimbabwe this is the most commonly used method in government institutions and in
small businesses such as sole proprietors. For example, in an educational institute, fees
receipts, and other financial calculations (or transactions) are performed by hand.
 In big institutions, manual data processing system requires that a data capture clerk enters
transactions from job cards, source documents and other sources on to subsidiary books
(Cash book and journals) and post to the ledgers by hand. The data capture clerk will then
hand over to a bookkeeper who will then record the information into the books of
accounts. The accountant will then go on to prepare final accounts and management
reports from the ledgers.
 Under manual data processing, information is stored in physical files and cabinets.
Advantages
 It is cheaper as there is no need to buy sophisticated machines.
 It does not require electricity to be used.
 It does not need special training as compared to electronic methods.
Sir-kuru 0773359000
 Not affected by technological advancement.
 It can be integrated with electronic methods.
 Not very expensive to administer.
 Creates more jobs.
 No virus or data loss threats.
 Job involvement and satisfaction.
 Paper work provides immediate backup.
Disadvantages
 The method is very slow.
 The method has a very high probability of errors.
 Labour intensive.
 Errors can be harder to track and correct.
 It is stressful as it requires mental thinking.
 Time consuming.
 Requires training on how to use the manual method.
 Too much paperwork involved.
 Useful information can be easily destroyed by fire.
Note
 During this course of learning accounting we are using manual data processing method as
we manually record business transactions from source documents into subsidiary books
(such as the cash book and the journals), post to the ledger, prepare the trial balance up to
the preparation of financial statements.

Electronic Data Processing Method


BY THE END OF THIS SUB-TOPIC, LEARNERS SHOULD BE ABLE TO:
 Explain the electronic data processing method.
 List the advantages and disadvantages of the electronic data processing method.
 Compare electronic and manual data processing methods.

The electronic data processing method


 This method is also known as mechanical data processing.
 Electronic data processing involves the use of electronic machines such as computers,
mechanical devices (like printers and typewriters) in processing data.
 Electronic machines such as computers are given a set of instructions as input and
automatically process the data according to the given set of instructions.
 This is the modern method of processing data based on information technology (IT).
 Electronic data processing is the mostly adopted data processing method in the 21st
century due to technological advancements.
Sir-kuru 0773359000
Advantages
 Very fast.
 Accurate as some computer programs have built in error detection systems.
 Less labour intensive.
 Errors can be easily traced and corrected.
 Electronic data processing systems are free from manipulation once correct information has
been captured.
 Fewer papers are involved.
 It promotes green technology.
 Files can be saved and archived electronically.
 Computerised accounting makes it safe and easy to share files and information with no
geographic limitations.
 Files can be protected by the use of passwords.
 Accounting reports can be easily and quickly produced at any given time.
Disadvantages
 Very expensive - Office automation can be very expensive when installing in software and
equipment for the first time.
 Leads to loss of jobs as only a few employees will be needed to operate machines.
 High maintenance or upgrading costs as machines may need to be serviced, updated or
upgraded periodically.
 Affected by technological changes.
 High training and retraining costs for the personnel operating the machines, in cases of new
upgrades and changes in operating programs.
 Affected by viruses.
 Prone to crashing as a result of mismanagement and technical faults.
 There is need for (onsite or offsite) back-up.
 Rely on electric power for operation.
 Cannot be integrated with manual data processing method.

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