Difference Between Manual and Automatic Ledger Scrutiny

 

Sr. No. Manual Ledger Scrutiny Automatic Ledger Scrutiny
1 Time-consuming process Very fast
2 Requires detailed knowledge and experience Requires operational knowledge of the subject and audit tool
3 100% checking is not always possible Always 100% checking is done
4 Data processing at ledger master level is not possible Scrutiny takes care of inputs at ledger master level (e.g., Clause 44)
5 Rate-wise, party-wise, expenses-wise analysis is difficult for GST and TDS Software handles data bifurcation as per user needs with accuracy
6 Involves dependency on skilled employees No need for skilled employees
7 Need to recheck work done by others No need to recheck work done by others
8 Not cost-effective as skilled employees command high salaries Very cost-effective with one-time yearly payment
9 Physical limitations like lack of concentration, work pressure, due date pressure, sitting capacity, personal commitments No such concerns; can scrutinize hundreds of tally data with accuracy
10 No standardization in output Always standardized output
11 Prone to errors and risk of omissions Always 100% accurate, no omissions
12 Size of tally data hampers quality of scrutiny and output, requiring significant time and energy No such issues

Summary

Manual ledger scrutiny is labor-intensive, reliant on skilled personnel, and prone to errors and omissions. It struggles with comprehensive and detailed analysis, lacks standardization, and faces physical and operational limitations. Conversely, automatic ledger scrutiny is fast, cost-effective, and capable of 100% accurate and standardized output. It efficiently handles large datasets and complex bifurcations without the need for constant rechecking or skilled oversight.