There are only 4 broad types of adjusting entries. Adjusting entries serve a generic purpose of matching revenues and expenses to the period incurred. It is to give the users of the accounting statements a clearer picture of the financial condition of the company.
At on time, all of these adjusting transactions were done by hand. In some cases, they still are. Generally, the real small, lower revenue companies will still use paper more than computers. In the larger companies, most use a hybrid system of some manual and some automated transactions. Granted most is automated, but some transactions get calculated by hand with the end result entered into the system. It all depends on the purpose of the transaction and the potential benefit of performing the calculation by hand. The repetitive transactions are best performed by an automated system.
What are some other benefits of calculating adjusting entries by hand? by computer?© BrainMass Inc. brainmass.com June 23, 2018, 12:48 am ad1c9bdddf
What are some other benefits of calculating adjusting entries by hand? by computer?
This gives a list (bullets) of advantages of a manual and a computer system for journalizing transactions.