A manual system is an accounting system in which records are kept by hand rather than by computer. However, transactions are processed in journals, and the data is individually compiled into a financial report. These systems have a considerable probability of error and therefore are generally slower than computer systems. Small businesses with few operations are most likely to use manual processes.
There are no computerized tools in a manual information system. The data is manually recorded, stored, and retrieved by the professionals who are in charge of the information system.
The major elements of a manual information system are listed below:
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People- The consumers of the information system are people.
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Business Procedures - These are procedures for analyzing information, storing it, analyzing it, and creating information that has been set in place.
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Data- these are the transactions that are documented daily.
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Filing system- A filing system is a method of storing well-organized information.
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Reports - reports are prepared after manually examining and combining data from the filing system.