Advantages and disadvantages of information systems in Business
Businesses need information that is timely, useful, profitable, accessible, organized and accurate. As a result, information systems must be constantly maintained and improved to meet the expectations of society and the needs of customers. To do this, managers need to be aware of the advantages and disadvantages of these systems.
Maintaining a state-of-the-art information system involves five elements, including hardware, software, data, people and processes. The equipment must be reliable and must be equipped to handle different workloads. The software must be carefully designed and evaluated for its effectiveness. All data must be entered accurately into the computer. Selectively qualified personnel must be qualified and knowledgeable enough to handle the latest information systems and users must be taught how to operate the system.
Advantages
1.
A good information system allows the user to access, understand and react to information quickly and efficiently. Whenever necessary, users can get the most accurate information needed to do an activity.
2.
A good information system also offers users a variety of ways to change and present information, as well as to perform different tasks. For businesses, this ability - change data into useful information - is invaluable for successful business and problem solving
Disadvantages
1.
Information systems cannot. Always work properly. This occurs for several reasons. Systems fail, interrupt operations smoothly and cause customer dissatisfaction. For example, customers may be charged for bad services or goods they did not order. In addition, faulty information systems can deliver erroneous information to other systems, which could create additional problems for the company and its customers. In addition, the systems are vulnerable to hackers and fraud.
2.
When systems fail Companies are responsible for correcting the malfunction of their information systems in order to avoid loss of revenue and customer loyalty. However, the lack of information system should be expected in time due to growing pains. As the business grows, the information system usually develops with it. However, when information systems fail, customers must be notified immediately, aware of the problem and how long it will take to resolve it. Immediately informing customers of what is happening goes a long way to proving the reliability of the business.
What are the advantages and disadvantages of accounting software?
Using accounting software has certain advantages & disadvantages: securing the bookkeeping process, saving time, adapting to needs, simplifying exchanges, etc. However, it is not without drawbacks.
What are the advantages of accounting software?
Accounting software has, at minimum, four advantages. He:
- Secures the accounting management process,
- Saves time,
- Adapts to the needs of the company,
- And simplifies exchanges with the accountant.
1. Security and reliability
When a company does its own accounting, the use of accounting software makes it possible to secure and make reliable the entire accounting process .
Thus, the accounting entries are recorded in previously set logs and the totals are carried out automatically. The software checks by itself the algebraic balance of each writing. If the total debits are different from the total credits, the entry operator cannot exit the log. In addition, he carries out the totals and postpones the items on all the obligatory accounting books (ledger and journal). Centralizations are also managed automatically.
2. Time saving
The automation of tasks offers, for any company, an undeniable saving of time . Accounting software alone greatly simplifies the scope of accounting work. Indeed, no more manual task comes to weigh down the process.
Beyond this, many features make it possible to save even more time every day: creation of input guides, automatic lettering, and automatic data integration (recovery of bank statements, automatic invoice recognition), etc.
3. Adaptability
This is the last highlight of the accounting software. It shows great adaptability to the needs expressed by a company. It covers the needs of a small business as well as those of an SME or a large company. For this, the solutions offered by software vendors generally include modules to which the company has the choice to subscribe or not.
The accounting software can be supplemented by other management solutions in the broad sense of the term (billing-billing, commercial management, supply management, payroll management, asset management, cash, etc.).
4. Simplification of exchanges
The accounting software simplifies the exchanges between the company and its possible accountant in the sense that it automates the relationship between the parties and limits the scope of human intervention. In the case of online accounting software, it does not require any: the accountant can access the company's data without having to travel.
For traditional accounting software, the exchanges are carried out by means of an export from the accounting of the company followed by an import into the solution of the accountant.
What are the disadvantages of accounting software?
The disadvantages of accounting software remain marginal compared to the benefits it provides. That being said, this solution can be costly for the company, it requires a sometimes complex configuration and can lead to a certain dependence on the software publisher.
1. Cost
The use of standardized accounting software is less expensive than a specific development. However, it can sometimes be a large expense item ; And this for two reasons.
First, the accounting software may have hidden costs , such as subscription fees and maintenance expenses that can drive up the bill. Then, it can cause an additional cost for a company that subscribes to modules offering features that are useless, that is to say that are unsuitable for its needs.
2. Setting
Like any computer program, the accounting software is a solution that requires a complete and rigorous configuration. This will allow you to take advantage of all the features integrated in the management solution and especially to make sure that they all work properly.
For novices in this area, this approach can be complex and training seems essential. Failing this, the incorrect parameterization (or the absence of parameterization) can lead to major malfunctions.
3. Addiction
The use of accounting software makes the company dependent on the software publisher. The latter may feel hijacked because, in case of failure, she finds herself without any alternative solution.
It is for these reasons that it is important to choose accounting software developed by a recognized and successful company in its field of activity. In addition, the company must analyze the means of migration that it has at its disposal before investing.
The advantages and disadvantages of free software for businesses
Free of cost software is an application dedicated to everyone, be it an entrepreneur or a company. Each user has the right to use, download, study, copy, modify and improve this kind of software. However, this does not necessarily represent only advantages.
The advantages of free software
The main advantage of most free software is that it is free because licensing can be a big budget especially for SMEs. In addition, with free software the direct update costs do not exist. In addition, these programs are downloadable easily and legally. The users are totally independent from the producers. For a company, free software guarantees the possibility of modifying the application at any time, that is to say that the company can benefit from the improvement provided by the software without having to pay anything.
Open source software can be transformed by anyone because their source code remains freely accessible. This is a big advantage, especially for competent computer scientists able to modify a software to adapt it to their needs and those of others. Finally, since free software can be examined and modified by all, their faults are quickly identified and corrected, so they are really credible and secure just like proprietary software.
The disadvantages of free software
If you are using paid software and think you are try free software, you should know that they are free, only their functions are generally less advanced. Indeed, some free software features are not yet exploited, because publishers do not see any interest. On the other hand, the paid software is very developed in order to be able to answer the needs of the customers. You must therefore make your choice according to the features presented and your needs.
NOTE: - Read The article and tips carefully it will be beneficial for your business.
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