Following are the drawbacks for using Standalone Ledger system in your organization
1- Data Redundancy
Using standalone systems always lead to data redundancy. Data in one system is useless for other system.
2- No Integration
There is no integration between Standalone systems of different departments working in the same organization.
3- Less Reliable
Due to less integration, Data Entry Operators have to input the data for each department while increasing the chances of human error and making the software application less reliable.
4- Time Taking
Due to no integrations humans have to input data taking plenty of time. This reduces the chance of readily available information for management for decision making and others departments.
5- More Labor Cost
To fulfill the needs of standalone accounting system, organizations always requires more data entry operators making the project cost too high as compare to ERP’s.
6- Overall Cost Impact
Separate hardware for each standalone system, their maintenance, parallel data entry into each system lead to a major cost impact on I.T budget for that specific organization.
7- Difficult for Decision Making
8- Having different systems in same organization mean management should have to analyze same reports from each system. This will lead to in-efficient decision making.
9- Island of Information
Each department behaves a different island of information taking information from each department and reconcile it for decision make took too much time than usual.
10- Heterogeneous Hardware and Software Platforms
To maintain the different system for each department lead us to a heterogeneous I.T infrastructure causing more labour, hardware, software, electricity and space cost.
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