The Effects of Technology On The Accounting Profession - Essay Example

The Effects of Technology on the Accounting Profession Edgar Sosa ACC/210 4/27/15 of Phoenix Ralph Pertillo The Effects of Technology on the Accounting Profession The accounting profession is changing at a great deal as a result of the advancement in technology. Previously, financial accounting was carried out manually that involved a huge some of paperwork and was tiresome. Thanks to technological improvements, computers have been introduced to record most of the accounting data which is more easy and effective (Smith, 1994). Since accounting profession is a field that deals with business information, innovations accrued to this area will impact the accounting department of the organization positively. For instance, in the old days, calculators that were used were the battery operated type but today we simply use computers that are faster as opposed to the calculators. New Technologies and Their Effect on the Accounting Process Todays accounting experts who comprehend the significance of the internet will utilize the internet for e-business. They utilize the internet to execute real business forms in the venture. Electronic business (e-business) permits the accounting firm to arrange exercises for interior administration and joins the customers associations with the utilization of advanced systems. Undertaking applications can be utilized with a little interior system called the intranet. The intranet can convey data to representatives, for example, corporate approaches, and projects. It fixates on an entrance, which is the solitary purpose of access. Data can originate from a few separate frameworks utilizing a Web interface. They can highlight such things as email, interior reports, for example, the code of ethics, and a hunt apparatus. It is a decent method for correspondence inside an association. Accounting experts can likewise correspond outside the association with Web innovation utilizing the making of an extranet. This permits the customers to have restricted access, connecting to a segment of the accounting companys intranet to import and fare records forward and backward. Connecting electronically builds effectiveness and eliminates travel costs at last lessening operational expenses (Laudon & Laudon, 2006). Another useful technology is the automated manufacturing computer. With this form of technology, PCs gather and report data at the same time. The result is an operational data framework that completely incorporates producing with advertising and accounting information, expanding both the quality and timelessness of data (Warren, 1998). This definite data has been of importance in accounting, permitting the accountants to create action based costing frameworks. These new costing frameworks permit accountants to assign overhead more productively. These frameworks can likewise recognize non-value added expenses giving cost accountants a chance to change them to value added expenses (Warren, 1998). Another innovation that is having an incredible impact on the accountant profession is Wi-Fi innovation. Presently, accountants can be on the inverse sides of the nation and deal with the same issues without either being on same location due to the advances of Wi-Fi innovation. Accountants can transfer data and reports from anyplace in the country regardless of the length. Types of Software Used To Improve the Accounting Processes Enterprise Resource Planning (ERP) Systems This is software that incorporates distinctive divisions in the association into the same framework. This makes information accessible differently and backings exercises between the distinctive divisions. The data is made accessible through a typical focal database and imparted through practical ranges, for example, fund and bookkeeping, deals and showcasing, HR, and assembling and generation (Laudon & Laudon, 2006). Quicken 4 for Windows It is software that was developed by Intuit. This product furnishes bookkeepers with on-line documentation, interactive media exercises, and even intuitive exhortation from budgetary specialists (Libicki, 1995). Expert Systems This is a kind of artificial intelligence software used by accountants in making decisions (Smith, 1994). The software is particularly valuable in both auditing and tax decision making. However, it can be produced to help clients in various regions including stock control and budgetary explanation readiness. Completely Integrated Business Environment (CIBE) This software essentially attempts to arrange the real outflow of data delivered by these advancements without taking out any important data. These information based relationship accounting systems are of extraordinary quality to management accountants. CIBE software is totally coordinated permitting all money related and management data to be controlled by a solitary corporate database. This single control point will permit the business to work all the more productively and successfully. For management accountants, this implies that particular components adding to the soundness of the organization can be checked on a persistent premise. Data turns into a key asset to the element. Data from all sources can be consolidated when vital. This gives management accountants an extremely successful and proficient technique for examination, administration reporting, and control (warren, 1998). Computers and information technology (IT) has had the biggest influence in creating greater effectiveness and viability in the accounting profession. In this data age, fewer laborers are creating merchandise while more workers are paid to break down and control data about the products created (Bagranoff, Simkin & Norman, 2008). More consideration in innovation is being paid to data frameworks that assist to streamline the bookkeeping process and convey the data being created. This innovation is helping AISs to catch more than just monetary exchanges (Bagranoff, Simkin & Norman, 2008). To add on this, the accounting profession altogether changed because of the way new issues have ascended out of advances in Accounting Information Systems (AISs). Issues, for example, data over-burden, information lapses and deficient review trails have made a more prominent requirement for accountants to be trained in IT advances (Bagranoff, Simkin & Norman, 2008). Conclusion Changes in technology and information systems have incredibly affected the accounting profession in both substantial and small organizations. The innovation of PCs and IT has served to create AISs that process data for the whole business of associations. These improvements have helped organizations to have more prominent control of funds and additionally settling on educated choices to respond to monetary exercises. Also, with Wi-Fi innovation eradicating limits between where work is and where work is done the accountant can stay joined with customers more effectively and with greater outcome. With further innovations in technology, the organization may have the capacity to operate more efficiently and effectively; hence, promoting accuracy in its bookkeeping process. References Bagranoff, N. A., Simkin, M. G., & Norman, C. S. (2008). Core concepts of accounting Information systems. New York, NY: John Wiley & Sons. Laudon, K. C., & Laudon, J. P. (1998). Management information systems: New approaches to organization and technology. Upper Saddle River N.J: Prentice Hall International. Libicki, M. C. (1995). Information technology standards: Quest for the common byte. Boston: Digital Press. Smith, M. (2011). Research methods in accounting. London: Sage Publ. Warren, C. S. (1998). Financial & managerial accounting, 6e. Cincinnati, Ohio: South-Western College Pub. Read More