ComputerBased

Accounting
System

Differences Between Batch and Realtime Processing

Distinguishing
Feature

Batch

Information time
frame

Lag exists between

time when the
economic event
occurs and when it is
recorded.

Resources

Operational
efficiency

Generally, fewer
resources (e.g.,
hardware,
programming,
training) are
required.
Certain records are
processed after the
event to avoid
operational delays.

Real- time
Processing takes
place when the
economic event
occurs.
More resources are
required than for
batch processing.

All records pertaining

to the event are
processed
immediately.

Efficiency
vs.
Effectivenes
s

ALTERNATIVE
DATA
PROCESSING
APPROACHE
S

Legacy
System

Modern
System

Updating Master Files from Transactions

Database Back-up Procedures

BATCH PROCESSING USING REAL-TIME DATA COLLECTION

Real- time Processing

Real-time processing is well suited to
systems that process lower transaction
volumes and those that do not share
common records. These systems make
extensive use of local area network and
wide area net- work technology.
Terminals at distributed sites throughout
the organization are used for receiving,
processing, and sending information
about current transactions.