The Effects Technology has on Accounting Professionals
The effects of technology on the accounting profession:
Over the past several decades the effects of technology on the accounting profession have been numerous and extremely influential. Major impacts can be seen in areas of data collection, storing, processing, and outputting into various forms of information. This information has also been shared much easier, through widespread accessibility along with increased communications to management, stakeholders, and governmental agencies.
Below is a discussion of technology and its impact on: the accounting profession, how information systems are changing the various aspects of the accounting profession, new technologies and their effects on accounting processes; in addition, how new technologies have changed the way accounting is performed in a given organization.
The accounting profession and technology:
It wasn’t long ago when many organizations didn’t utilize one of the many commonly used accounting programs of today. Technology has truly changed how accounting is conducted and performed in just about every accounting firm in the United States; including throughout much of the world.
Accounting software has provided for much more tidy collection and allocation of accounting data. Furthermore the integration of multiple data formats has given appropriate users of accounting statements much quicker and easier accessibility. This has a significant impact on larger companies who consistently rely on accounting data for day-to-day functions.
Information systems is commonly referred to describe computer based software and programs, but shouldn’t exclude the users of such programs. Accounting information systems, similarly, refers to specific accounting software such as QuickBooks®, PeachTree, or Turbotax, which aids businesses and individuals with an abundance of accounting functions.
The use of such information systems changes the various aspects of the accounting profession by creating a user-friendly interface that allows for data input in regards to costs—e.g. purchasing and production, sales, financial statement reporting, taxes, and much more. Before the aid of computer based accounting information systems data took much longer to be compiled and distributed. It also allowed for a higher degree of error and for longer times for locating and correcting errors.
New technologies are always welcomed and their effects on accounting processes are an essential factor to most businesses. New technologies are often accredited for improving documentation both on the Internet and within local area networks (LANs) and wide area networks (WANs). New technologies also offer improved methods for inputting accounting data and for how that data is allocated. With the integration of LANs, WANs, and the Internet, reporting data—flowcharts, diagrams, statistics, etc., can be remotely accessed from anywhere in the world where an Internet connection is available.
An example of how new technologies change the way:
The owner of a local pool maintenance company recently purchased a copy of Intuit’s QuickBooks®. He explained that using QuickBooks® to document is daily, weekly, and a monthly activity was not only useful, but much easier than he initially thought it would be. The pool company owner told listeners that he has used the software to create specific expenditure accounts, for products, tools, and payroll; where he could then run reports and see exactly what he owed to suppliers, employees, and in taxes. Without the integration of QuickBooks® into the pool company owner’s business, he would certainly be left manually calculated and documenting much of the data that the software did automatically.
This is just one example where new technologies have aided in the change of accounting processes for a small company. Technologies have changed countless accounting methods for just about every modern organization, and will likely continue to gradually do so.
Technology has and will continue to effect the accounting profession in a far-reaching manner. For many firms, technology has influenced accounting aspects for all functions requiring bookkeeping. From reporting income statements and balance sheets, to sharing data internally and externally, today’s society relies heavily on accounting information systems and incorporating new technologies.