March 31, 2014
The Effects of Technology on the Accounting Profession Paper
Accounting commonly refers to the language that is business. With time comes change, and the birth of technology has expedited that change. New technology is developed regularly that forces the individual and companies to adapt to current status quos and modernize old practices. Thus, herein lays the crossroads of accounting and information systems and what changes are resulting in the way business operates, communicates, and delegates information internally and externally.
The vast amount of changes results from one piece of equipment, the computer. This device creates the means to store and calculate immense amount of data and the speed of light. This revolutionary piece of equipment results in the creation of more technology to be utilized within the accounting practice. The computer alone cannot generate information cohesively or coherently without a user generating software to guide and disseminate data. Software is a program that guides users through a process. Accounting software, better known as computerized accounting, is now a common program utilized in all types of small/large businesses to help accountants practice their trade more efficiently. Computerized accounting does require a high level of training to maintain proficiency with advanced systems but are not limited to user friendly versions of software for small business owners. A joining together of old practices and new technology is now a reality many organizations are practicing.
Accounting Information Systems (AIS) monitors many functions within a business such as accounting, but are not limited to finances, marketing, human resources, or even production numbers. Innovations in technology like Wireless fidelity technology (WiFi) is predicted to have the greatest impact on accountants with constant internet connectivity in almost any location around the world that enable live updates to important tasks and information gathering. Any paperwork can now be completed while traveling or during vacations instantaneously. WiFi in conjunction with Cloud technology allows accounts access any place that they can stream the Internet to update information. As Kepczyk remarked on the future of accounting (2012), “The first major game-changer will be truly "ubiquitous" computing, meaning that accountants will be able to access firm computer resources 100% of the time through the Internet.” Cloud also works well with an organization because the company no longer has to update software/hardware annually because the independent server service provider can manage and maintain all functions related to the Cloud capabilities.
Technology as stated earlier is having effects on managerial accounting as well, allowing personnel to utilize new data to forecast projections to better specify goals a company is set to achieve. This is a practice that allows managers of a company to ascertain organizational health and can branch away from general accounting principles because of its internal nature. New data simulators can crunch amazing amount of data to help managers and accountants predict new trends and shifts in the business landscape.
At UPS Store the owner operates solely from his work space designated at the store. Accounting software allows a current record of all transactions, payroll, and inventory to be tracked without a shoe box full of receipts filling system. Automated information backup programs automatically compute, adjust, and configure financial statements with little oversight and effort is creating a huge footprint in efficiency. Performing automated accounting is to…