Difference Between Manual And Automated System | Manual System vs Automated System
What is Manual System ?
Definition: “ A manual system is like a bookkeeping system in which records maintanance is done by hand, without using a computer system or any automatic system. In this type of system transactions are written in journals, from which the information is manually retrieved into a set of financial statements. These systems suffer from higher rate of inaccuracy, and they are much slower than computerized systems. ”
Manual systems can waste both money and time. For example, administrators can spend a breathtaking amount of time searching for misplaced documents in a manual system, costing U.S. companies up to $89 billion each year. It's not just money lost, but people, too. The research reports that searching for lost and misplaced documents accounts for nearly 38 working hours per year for each employee. This has a big, negative ripple effect on professional perception, workplace productivity and organizational morale. Employees tend to leave disorganized organizations, and the frustration of working with manual systems can be a primary driver of employee turnover.
The effect on service delivery is also quite obvious, since customer frustration grows and company reputations diminish whenever documents generated by manual processes are misplaced. Automated systems reduce paper and make data storable, retrievable and searchable. Once automated systems are implemented, the time your employees waste searching for misplaced documents can be spent on more strategic, value-generating activities.
What is Automated System ?
Definition: “ Automated system is a combination of both software and hardware which is designed and programmed to work automatically without the need of any human operator to provide inputs and instructions for each operation. “
Automated systems allow you to monitor your processes in real time and identify problems as they arrive, enabling quick adjustments along the way. While manual systems can be difficult to coordinate, similar to the old cliche that "the right hand doesn't know what the left hand is doing," automated systems work in tandem on their own.
For instance, according to hotels, they could experience significant gains after automating their inventory and procurement systems. First, there are big cost savings and shorter fulfillment cycles. Second, hotels could experience significant time savings that free up staff to do more client-centric functions that enhance the overall business. Third, an automated system could bring better accuracy because staff members are no longer required to reenter data from paper documents. This dramatically reduces clerical errors. Fourth, automation would deliver an increased ability to negotiate better deals with suppliers. In any negotiation, it's essential to know exactly how much volume of supply is needed, allowing the purchaser to more accurately estimate volumes and purchase accordingly. The bottom line is that informed buyers have more leverage
Manual System Vs Automated System
The main difference between manual and computerized systems is speed. Accounting software processes data and creates reports much faster than manual systems. Calculations are done automatically in software programs, minimizing errors and increasing efficiency. Once data is input, you can create reports literally by pressing a button in a computerized system.
Another difference between manual and computerized systems is cost. Manual accounting with paper and pencil is much cheaper than a computerized system, which requires a machine and software. Other expenses associated with accounting software include training and program maintenance. Expenses can add up fast with costs for printers, paper, ink and other supplies.
A third difference between manual and computerized systems is the ease of backup of a computerized system. All transactions can be saved and backed up, in case of fire or other mishap. You cannot do this with paper records, unless you make copies of all pages--a long and inefficient process.