Effects of Technology Essay

Submitted By yitzgordon8
Words: 714
Pages: 3

“The Effects of Technology on the Accounting Profession”

Information technology and accounting information systems is significantly responsible for the positive changes in the accounting profession today. Due to these modifications, firm growth and productivity has increased dramatically, especially in the past year. The progress of hardware, applications, infrastructures, and combined accounting workflows show the accounting trends for the future. By firms noting the way the technology has thus far impacted the profession, the firms can thereby assess the potential increased productivity, profitability and nature of services that can be offered to their clients. The capability to have access to telecommute by means of a server, in the comfort of one’s home or the ability to access the internet, either in the office or at home, unrestricted Internet ability with all the tools necessary. So when auditors avail themselves of audit binders for local disk drives, the client and firm have the security and backup necessary to work from afar. The solution to conduct all possible work through the Internet, with backup on the firm's protected servers, where the data runs more effectively and can be accessed by anyone who is authorized to do so, has created a transition that is truly advantageous. Cloud Solutions, or doing work in the cloud, means that your accounting software is available anywhere where there is an internet connection. Your online system can also be linked to bank feeds for up-to-date and accurate syncing with your accounts, which makes for super easy reconciling. The data itself is backed-up off-site, so safer than storing on your own computer system. There are many advantages of an online business accounting solution, including real time, minimizing data entry and handling. Furthermore, cloud solutions enable the ability to track finances, the opportunity to pinpoint trends, including strengths and weaknesses, by reporting and analytics. Of notable mention is the digital workflow capability; the incorporation of applications and devices that essentially manipulate how data is managed and flows through the accounting practice, through electronic presentation. This requires enabling protected emails and portals to process and send this information to a firm, from the client. A portal that is up and running appropriately then informs the accountant that the data is uploaded. By means of workflow software like Workstream, these files are stored and the team members are thereby kept abreast of the documents and can plan accordingly the firm workflow. Tax accountants, through bookmarking software, like FxScan, or live annotation software, for example, PDFlyer, have the ability to store, return, and retain past years tax returns and data. Additionally, tax returns, invoices, and tax planners and organizers, can be sent electronically to clients, as opposed to in the mail with postage and waiting time. Auditors can now compile client documents and workpapers, in electronic portals which enable the