The Effects of Technology on the Accounting Profession

In: Business and Management

Submitted By cherylaar
Words 1054
Pages 5
The Effects of Technology on the Accounting Profession
ACC/340

The Effects of Technology on the Accounting Profession
Advancements in technology have allowed companies, small and large, to keep accurate financial records and eliminate paper entries. Technology has also allowed individuals in the accounting field the ability to interpret the financial information efficiently and effectively. With the introduction of the internet, a company now has the option to expand their business beyond a specific geographic area, and seek new opportunities for expansion around the globe. The introductions of new software programs, which can be designed to meet the specific needs of an industry, assist with the internal operations and profitability. While this new form of conducting business has been beneficial for an organization, it creates new challenges for the accounting field.
Technology and Changes in Accounting Over the years technology has continued to provide valuable tools not only to a business, but to individuals who manage the financial aspect of the company. The introduction of the Microsoft Excel program allowed accountants to utilize an electronic spread sheet, eliminating pencil and paper entries as well as minimizing errors. As time advanced software programs such as Quick Books, Microsoft Money, and industry specific programs emerged. For smaller companies it allowed the business owner to have all financial information related to their company at their fingertips. This also eliminated the need to hire an outside firm to gather and record the operating costs each month. The owner now had the opportunity to review vendor, customer, and bank accounts at the click of a mouse (Ingram, D. n.d.). Accountants working in the corporate field also benefit from new advancements in technology. From the information entered into the computers data…...

Similar Documents

How Technology Will Change the Accounting Profession

...ACC 700 How Technology Will Change the Accounting Profession Charles Duell, the director of the U.S Patent Office at the beginning of the twentieth century, prophesied that "everything that can be invented has been invented." Looking back, one can only laugh at the irony of this statement and the sheer amount that has actually changed since then. However, amidst the laughter, a question is raised: is it possible that today’s businesses believe what Duells said, that there is nothing more to come? Today, companies have access to some of the most groundbreaking technology, but are they truly taking advantage of it? One field that has changed dramatically over the past few years is the accounting profession, especially Certified Public Accountants (CPAs). Are CPAs staying on top of the latest technology that can greatly assist them in doing their job? For a better understanding of how technology directly affects the CPA profession one can simply look at the changes that have occurred over the past few decades, what a current office should be using, along with checking out the technological advances and how they will affect the career of CPAs in the next ten to twenty years. Not only is the accounting world changing, but the courses that an individual must study on the road to becoming a CPA, are also rapidly changing. The objective is to better prepare new graduates with a better understanding of the technology that will soon be such an integrated part of their lives.......

Words: 1920 - Pages: 8

Effects of Technology on the Accounting

...Effects of Technology on the Accounting Advances in technology clearly have affected many ambiguous processes to simplify, efficiency, record or easy storage, and create accuracy of any manual process. The accounting profession is one of many which have clearly changed its innovative way of conducting and processing systematically, but its principles have stayed the same. Information systems (IS) or computerized technologies purpose is to create efficiencies and simplify the manner in which data is collected, stored, and processed. It also provides the corporation with easy access to reports, accuracy, and historical data. In today’s world of technology accounting process for any organization is easily captured in a computerized system. Organizations maintain information of sales, supplies purchased, accounts receivables or billing process, and accounts payable on computerized systems. This allows the sharing of data, whereas in a manual process the accountant would have to retrieve the information from each department and maintain records in a spreadsheet and manually calculating the totals. This manual process was tedious, time consuming, and had many gaps for errors. In our current technologies there are software applications that provide the accountant with the necessary tools to obtain the data, calculate the totals and generate reports. So how does the effects of technology effect accounting? It has a positive effect because it simplifies the process but adds new......

Words: 771 - Pages: 4

Effects of Technology on the Accounting Profession

...Effects of Technology on the Accounting Profession University of Phoenix ACC/340 Accounting Information Systems Effects of Technology on the Accounting Profession Businesses have become more competitive, consumers are more informed, and technology has changed the way the world communicates. Information technology (IT) and the resulting ‘information age’ are continuously impacting every facet of accounting. (Bagranoff, Simkin, & Strand-Norman, 2006) This paper will examine how accounting information systems (AIS) are bringing about changes within the accounting profession. Additionally, a variety of technologies and how they affect accounting practices at Exclusively Yours Salon will be discussed. Accounting Information Systems and the Accounting Profession Today’s business environment is marked by increased competition and the need for better and faster information for decision making. According to Bagranoff, Simkin, and Strand-Norman, 2006: Because IT now captures transactions, AISs can produce financial statements almost in real time. Of course, some of the adjustments that accountants must make to the records are not done minute-by-minute, but a business can certainly track sales and many of its expenses continually. (p. 15) Additionally, large amounts of accounting records are increasingly presented only in an electronic fashion. Companies are reporting their financial outcome quarterly and an increasing number of companies are transferring their......

Words: 1072 - Pages: 5

Technologies and the Accounting Profession

...Technologies and the accounting profession Jamie Lee XACC/210 May 18, 2014 Carla White Technologies and the accounting profession Technology is changing at a constant pace. Within people’s lives, it has become the norm to have the newest and greatest in technology and everything it has to offer. The same goes for companies and the technology that they have. One of the differences is that those companies need to have the newest and greatest when it comes to technology. Their business depends upon it. If they do not have that technology, then the company is at a risk for not functioning at their utmost best, and could possible suffer or shut down. Accounting professions are not new to the advancements of technology either. In fact, they are probably more affected by the new ways of technology. Just as mentioned before, it a business does not keep up with the advancing technology, then their future is not bright. With accounting, many of the same effects this profession. If they do not keep up with the changing times, their methods become outdated and slow. We can go back to when the abacus was invented. It kept track of calculations in the business. Then the calculator was invented. This allowed for more accuracy with the number (Pepe, 2001). However, accountants still had to keep track of the business’s functions on paper. The process of measuring, identifying, and communicating financial information was documented by paper records (Pepe, 2011). Then towards......

Words: 1285 - Pages: 6

The Effects of Technology on Accounting

...THE EFFECTS OF TECHNOLOGY ON THE ACCOUNTING PROFESSION PAPER JEANETTE SANDERS XACC/210 JUNE 8, 2014 RICHARD VINCENT Abstract THE EFFECTS OF TECHNOLOGY ON THE ACCOUNTING PROFESSION PAPER Thirty years age most financing accounting was done by hand, which indeed left a long paper trail. “Currently, most accounting information is recorded via computers and wide area networks (Journal of Accountancy, 1994). Technology has changed the face of accounting over the last fifty years. It is unclear whether technology’s has an impact on accounting which can be interpret as being positive and negative. It is clear that technology has changed the accounting period. Some of the impacts of technology are either positive or negative which are simply changes, The impacts of technology on accounting field has been positive, negative and neutral, but the impact results cause an demand on the profession to confirm ti the changes but sudden results ti cause a huge demand the profession to conform to the changes. The advantage of technology is the various tools that it has provided. One example would be computer-integrated manufacturing, communications technology, Image processing and the Internet. An example of the many tools of technology whose purpose is to provide detailed and correct information in a short period of time. The advantage of technology is computer-integrated manufacturing technology. Computer –integrated manufacturing has a significant and......

Words: 762 - Pages: 4

Effects of Technology on the Accounting Profession Paper

...The Effects of Technology on the Accounting Profession has gone where no one thought it would 50 years ago. Fifty years ago Accounting systems was done on columnar accounting paper and carbonized checks, receipts. Then using an adding machine that had tape to compare totals and calculation rows of various monthly totals to make accounts balance. To today where accountants need to know their technology, companies are increasingly moving away from paper documentation to keeping everything on the computer. Technology has changed in the way companies compute and file taxes. Companies can purchase tax software to compute the total or the accounting software they use has add on packs that will take what information that has been entered the general ledger and compute the amounts that are owed. Using a tax program allows the preparer to either print out a return or file it electronically. Tax preparers have changed over time from filling out paper documents to entering everything online. To paying the IRS through online banking or receiving a return electronically into a bank account. The IRS introduced electronic filing in 1986. Electron filing has help cut costs from handling paper returns, and save time to inputting the tax returns into the system and preventing mistakes. Tax preparers have the IRS web site to look up new laws from year to year to help clients use the new law s to benefit them. The can use the search function to find answers quickly. Payroll has......

Words: 886 - Pages: 4

The Effects of Technology on the Accounting Profession

...The Effects of Technology on the Accounting Profession Kaishia Johnson ACC/340 April 21, 2014 Judy Thomas The Effects of Technology on the Accounting Profession Accounting Information Systems are defined as a collection of data and processing procedures that create needed information for its users, and exists at the intersection of two important disciplines: (1) accounting and (2) information systems (Bagarnoff, 2008, pg. 1). Knowing and understanding accounting information systems will allow accountants to possess a level of proficiency from using computers and the specialized software required to prepare the necessary financial statements. This paper will describe how information systems are changing the various aspects of the accounting profession. A description of the variety of new technologies and their effect on the accounting process will be also being discussed. Lastly the paper will discuss how these technologies have changed the way tax accounting is performed at Jackson Hewitt. Information systems are changing the various aspects of the accounting profession because it has eliminated the need to create and store enormous stacks of paperwork that has to be kept track of for financial reporting. The effect of accounting technology has been positive for accountants and firms, resulting in financial reports that are constructed faster and contain fewer errors. Information systems are used by accounting firms and departments to store......

Words: 974 - Pages: 4

The Effects of Technology on the Accounting

...The Effects of Technology on the Accounting Accounting is one of the key elements in any organization, which financial health highly depends on its accuracy. Modern enterprise involves a huge number of financial transactions, which reflected through the relevant information flows. Accounting includes many routine operations, repetition of the same computing operations, as well as preparation of financial reports and payment documents. In this regard, the traditional accounting involves a complex and painstaking work of accountants, which requires considerable effort and knowledge. The modern development of information technologies and their wide application in economic practice can solve this problem by automating some of the accounting processes. Currently, the use of information systems in the enterprise became an integral part of the production process. Application of the system has allowed the company to automate operations on registration receipts, transfers and disposals of its assets, as well as to improve the overall degree of control, the availability, and conditions. In addition, automation of accounting has other advantages over the traditional way of accounting, such as ability to improve employees productivity, reduce the influence of the "human factor”, increase the speed of reporting and documentation, as well as to provide the possibility of parallel accounting in a several different standards. Implementation of information systems and technologies......

Words: 751 - Pages: 4

Impact of Information Technology on the Accounting Profession

...THE IMPACT OF INFORMATION TECHNOLOGY ON THE ACCOUNTING PROFESSION. 1.1 Introduction It has become increasingly necessary for all businesses to incorporate Information Technology (IT) solutions to operate successfully and be able to maintain a competitive edge within the market they operate. As a result, many corporations have adopted Information Technology on a large scale by investing in Enterprise Resource Planning systems (ERPs) to accomplish their business transactions and data processing needs. Through the use of technology, various organisations have ventured into more efficient ways of conducting their business operations. Focus has since shifted to adopting the latest technology in order to beat competition. In light of the accounting division, this has meant adopting different forms of ERPs, some of which have led to huge failures even in reputable organisations. In some organizations, decisions with regards to adopting newer technology are made independent of the accounting function. This implies taking on such projects without prior consultation of personnel in the accounting division. As a result, some of the failures in those projects have adversely affected the accounting function of many organizations. In this study of the Impact of Information Technology on the accounting function I intend to establish a conclusion as to whether the impact being made by Information Technology on the accounting profession is positive or negative with particular attention...

Words: 1366 - Pages: 6

Effects of Technology on Accounting Information Systems

...Effects of Technology on Accounting Information Systems James King University of Phoenix: ACC/340 Accounting Information Systems I Instructor: Ray Dahmer June 27, 2011 Effects of Technology on Accounting Information Systems The information age and the resulting technological advances have made an impact on every functional area of the accounting industry including auditing, taxation, financial, and managerial accounting (Bagranoff, Simkin, & Norman, 2008). Information systems consist of data input and processing devices, applications, personnel, and procedures, all of which produce information that management uses to make crucial business decisions (Bagranoff, Simkin, & Norman, 2008). This paper contains a discussion of modern accounting information systems and the influence of those systems in the changing landscape of the accounting profession. New Technology and Its Effect on Business The introduction of modern information technology into the accounting profession has produced advances in the industry and in the design of accounting information systems. All but gone are the days of spiral bound ledgers and adding machines. Accounting applications running on computer systems with two-gigahertz processors and gigabytes worth of memory perform accounting tasks in modern organizations. The information generated by modern accounting information systems from the data gathered by the input terminals within the system, informs managers about the......

Words: 981 - Pages: 4

The Effects of Technology on the Accounting Profession

...The Effects of Technology on the Accounting Profession Eliot Sherman ACC/340 June 11, 2015 Michael Raponi According to Accounting Web, the next decade will see industries transition to a Cloud-enabled world where work can be accomplished anywhere, anytime. This will especially be true of the accounting profession, according to Intuit, as such tools as Cloud-connected smartphones and tablets will enable firms to provide clients with an "accountant in their pocket" at all times. In the modern age, technology is constantly evolving and this has an effect on every profession, especially accounting. Processes and procedures are becoming less manual and more automated. Accounting begun being all written and having hard copies as the only backup. Systems are becoming more advanced and powerful which allows them to aggregate large amounts of data. As time went on, new software and hardware allow calculations to occur more quickly and allow backup to be more readily accessible. As well, with accounting constantly changing, the standards and regulation overseeing the profession were as well. As well, a lot of companies in the early 2000s when the technology bubble was building, companies such as Enron and WorldCom tried to take advantage of lax audit rules and committed extensive fraud. This constantly requires technology to change to allow for it to be in line with what is required, specifically in relation to audits and GAAP. In this digital age, technology adapts and......

Words: 946 - Pages: 4

Technology on the Accounting Profession

...Effects of Technology on the Accounting Profession ACC/210 August 15, 2011 Effects of Technology on the Accounting Profession Technology, information, software, and even the machines used to input, translate, and interpret the data we enter are ever evolving at shocking rates. We must constantly stay on top of our skills in order to be able to navigate through the vast screens, shortcuts, functions, and utilities stored in these small computers that have the capacity to do what would take a room full of human brains to do in a fraction of the time. In a time where nearly every occupation can be automated, accounting is nearly no exception, but notice I did say ‘nearly.’ With a vast array of software programs, data collection methods, and forms of technologies to keep accounting professionals up to the minute on their financials, there is little reason to justify the use of the antiquated legal sized general ledger books anymore. By integrating AIS effectively in the manufacturing industry, the accounting department where I work has been able to promptly and accurately produce cost analysis reports for the machines we produce, determine our SG&A at any given point, and determine whether a customer’s credit can be extended based on their average days of payment. AIS are invaluable tools that are overlooked for the value that they truly add to an accounting department. An accounting information system is a system that combines traditional accounting practices such......

Words: 958 - Pages: 4

The Effects of Technology on the Accounting Profession

...The Effects of Technology on the Accounting Profession Jessica Lopez November 15, 2015 University of Phoenix ACC/ 210 Edgar Coronel Every accountant understands and knows that they are the advisor of the business. That advisor has encountered various movements all through the ages. Regardless, through each one of the movements accounting advancement has always had away in making the clerk's occupation just a little less complex. As our knowledge into advancement extended so has the accountant's ability to analyze quantifiable qualities. Development types of progress have enhanced the clerk's ability to decode data capably and reasonably. He/she now can interpret and guide the business with no trouble. Accountants through all these advancements have transformed themselves into an association's most trusted business advisor. Accounting over the last several centuries has improved drastically. It all started with the abacus used by businessmen (merchants) to help keep count of inventory being bought and being sold this was a helpful took to keep track of business. (Kruglinski, 2009; “How Technology,” n.d.). In spite of the fact that we didn't call it innovation, we can retreat hundreds of years with a few endeavors to assemble calculators to help an accountant with numerical arrangements. After the first working calculator, came the development of the computer for data precision. As innovation propelled so did the pace and capability of an accountants employment. Be......

Words: 721 - Pages: 3

The Effects of Technology on the Accounting Profession Paper

...The Effects of Technology on the Accounting Profession Paper Amy Everett ACC/210 December 7, 2015 The Effects of Technology on the Accounting Profession Paper The accounting profession has seen many changes with the advancements of technology and has given accountants with various tools. Examples of these tools include computer-integrated manufacturing, image processing, communications technology, the Internet, and software systems. These examples are a few of the many tools provided by technology and whose purpose is to provide more detailed and accurate information in a timely manner. Advancing technology allows companies to maintain more accurate financial records which are available at the touch of a key. While the advancements have benefited companies everywhere, it also creates new challenges for the accounting profession. Corporate Tax Network (2013) believes that the concept of the spreadsheet has allowed accountants to quickly make calculations with formulas, perform forecasting analysis, and create visualizations that show what the client’s finances and tax requirements from the past, present, and into the future look like. Computers, scanners, faxes, and printers have had a positive impact on the accounting profession. The software that is available makes efficient work of the figures that are reported and provides more accuracy as the calculations are done automatically. With the use of accounting software, the accountant can interpret the financial......

Words: 906 - Pages: 4

The Effects of Technology on Accounting Professionals

... in promoting and advertising this service. Customers will get the extra benefits for registering and purchasing laundery plans that meet their needs as well as keeping the facility open and secure 24/7 access without interruption. Lynn’s Clean & Press maintains its competitive edge through maintain supplies in bulk from wholesalers and reducing accounting by using online services for all the cleaning needs. The Diffirentiator for Lynn’s Clean & Press would be that by using a web base order form, Families can easy request laundery service that is tailored and personalized services to addressing to the entire family needs. The online processes and tools would be high in technology and quality so that the experts can have uninterrupted web interaction with its customers. The Lynn’s Clean & Press webservices staff would be technically proficient in taking web base orders and well versed in the laundry services a family would needs Lynn’s Clean & Press will have to be diligent in keeping the operationg cost down as the economy might shift causing higher supply cost, resources , maintain the technology edge and hiring qualified professionals . However, this can be offset by the increase number of satisfied customer online as well as walk-ins. Also by having all customres register promotion, advertisement campaigns and references would Satisfied customers will help make Lynn’s Clean & Press a leader in the laundry business. For smooth......

Words: 490 - Pages: 2

Mobile Police Patlabor | [EX-TORRENTY ORG] Crazy Rich Asians 2018 PL 480p BDRip XviD AC3-AZQ | Beautiful Creatures