However, I would suggest showing that the cost of running a manual accounting system would be higher than that of running a computerized accounting system. It would also save the company some time as the data is only entered once into the system.
The profitability of a
business does not depend on whether a business is a merchandise business or a
service business. Instead, it depends on a set of factors. First, it depends on
the sales of a business. The more the sales, the more profits it is able to
make. Secondly, there is the cost of
staying in business. If a business pays out too much in terms of rent and
labor, it profitability goes down. Third, there are the expenses of a business
in the form of transport, bills, and others. A company should lower its
expenses to stay profitable. Finally, there is the issue of pricing. A good price
is the highest price that the customers are willing to pay for a product. Both
merchandise and service businesses can be profitable if these factors are kept
in mind (Parkitna, &
Parkitna, A., & Sadowska, B., (2011). Factors determining the profitability of enterprises – influence assessment. Operations research and decisions, (2) pp. 45-58
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