The following conversation took place between Merit Construction Co.’s bookkeeper, Dan Essex, and the accounting supervisor, Sarah Nelson:
Sarah: Dan, I’m thinking about bringing in a new computerized accounting system to replace our manual system. I guess this will mean that you will need to learn how to do computerized accounting.
Dan: What does computerized accounting mean?
Sarah: I’m not sure, but you’ll need to prepare for this new way of doing business.
Dan: I’m not so sure we need a computerized system. I’ve been looking at some of the sample reports from the software vendor. It looks to me as if the computer will not add much to what we are already doing.
Sarah: What do you mean?
Dan: Well, look at these reports. This Sales by Customer Report looks like our revenue journal, and the Deposit Detail Report looks like our cash receipts journal. Granted, the computer types them, so they look much neater than my special journals, but I don’t see that we’re gaining much from this change.
Sarah: Well, surely there’s more to it than nice-looking reports. I’ve got to believe that a computerized system will save us time and eff ort someplace.
Dan: I don’t see how. We still need to key in transactions into the computer. If anything, there may be more work when it’s all said and done.
Do you agree with Dan? Why might a computerized environment be preferred over the manual system?