Preview

Effects of Technology on the Accounting Profession

Better Essays
Open Document
Open Document
1022 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Effects of Technology on the Accounting Profession
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 financial records to a public network. (Shafer, 1998)
For several reasons, companies are facing growing competition. In order to remain competitive, companies must have techniques to control costs associated with its various operating activities. According to Bagranoff, 2006, “One example of AIS in the area of cost accounting is an activity-based costing (ABC) system.” (p. 16) Traditionally, overhead rates were applied to production arbitrarily. As



References: Bagranoff, N. A., Simkin, M. G., & Strand-Norman, C. (2006). Core Concepts of Accounting Infomation Systems (10th ed.). Hoboken, NJ: Wiley & Sons. Hedtke, J. (2009). Entry Level Staying Power. Accounting Today , 23 (11), 36-38. Retrieved August 27, 2009 from EBSCOhost database: http://search.ebscohost.com.ezproxy.apollolibrary.com/login.aspx?direct=true&db=bth&AN=43376069&site=bsi-live. Liddle, A. J. (2009). Latest transaction tech gains traction as operators explore POS possibilities. Nation 's Restaraunt News , 43 (13), 64-66. Retrieve August 27, from EBSCOhost database: http://search.ebscohost.com.ezproxy.apollolibrary.com/login.aspx?direct=true&db=bth&AN=38229542&site=bsi-live. Shafer, W. E. (1998). The Accounting Profession in the New Millennium. Retrieved August 27, 2009, from Entrepreneur: http://www.entrepreneur.com/tradejournals/article/55367481.html.

You May Also Find These Documents Helpful

  • Better Essays

    Kudler Fine Foods

    • 971 Words
    • 4 Pages

    Core Concepts of Accounting Information System Author: Nancy A. Bagranoff copyright © 2008 John Wiley & Sons, Inc.…

    • 971 Words
    • 4 Pages
    Better Essays
  • Good Essays

    A good accounting information system (AIS) will help create, maintain, and distribute the financial reports as well as perform tasks in payroll, accounts receivable, accounts payable, inventory, and budgeting (Bagranoff, Simkin, & Norman, 2010). Management will be able to set up controls in the system allowing staff to have access to what is necessary and appropriate for their job. They will be able to call up and modify this information electronically without searching or filling out new paperwork. Data entry will be mainstreamed, allowing for less key strokes, and integration of information. This will allow for better accuracy in accounting and accounts will be able to be managed more efficiently, including processing of bi-weekly payroll. Payroll will then be sent directly to processing and reports to the correct managers. Accounts receivable will be able to track when customers use the POS system and update the sales information. Accounts payable will track when a vendor payment is due, allowing for payment processing, and appropriate management and accounting reports. The inventory system will be more accurate saving Kudler time and…

    • 804 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Turner, L. (2009) Accounting Information Systems: Controls and Processes. Hoboken, NJ: John Wiley & Sons, Inc.…

    • 3275 Words
    • 14 Pages
    Best Essays
  • Satisfactory Essays

    Fontinelle, A. (2011, March 2). Introduction To Accounting Information Systems. Retrieved May 26, 2015, from http://www.investopedia.com/articles/professionaleducation/11/accounting-information-systems.asp…

    • 580 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Acct 542 Audit Proposal

    • 1234 Words
    • 5 Pages

    References: Bagranoff, N.A., Simkin, M.G., & Strand Norman (2008). Core Concepts of Accounting Information Systems (10th ed.). New York: NY: John Wiley & Sons, Inc.…

    • 1234 Words
    • 5 Pages
    Powerful Essays
  • Best Essays

    With rapid development of the information technology, computerized accounting information system plays an increasingly crucial role in the operation of organization regardless large, medium or small enterprises. This can be contributed to the merits of the marriage of accounting and the computer science technology, which dramatically improve the accuracy and speed of the process of information system. However, along with the advantages of the computerized accounting information system, there emerge several deadly deficiencies which, if not appropriately deal with, can be greatly detrimental to the interests of the organization and, even worse, may lead to collapse of the company. This essay mainly focuses on several important aspects of the deficiency of the computerized accounting information system and then provides feasible solutions to prevent the negative influence derived from these threats.…

    • 1788 Words
    • 6 Pages
    Best Essays
  • Good Essays

    ACC 562 wk 6 dis

    • 1996 Words
    • 6 Pages

    References: Romney, M., & Steinbart, P. (2012). Accounting information systems. (12th ed., p. 143). Upper Saddle River, NJ: Prentice Hall.…

    • 1996 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    New technology in information systems have bought significant changes in accounting profession, practices and processes. It has increased the efficiency and accuracy in accounting and has speed up the process for manual accounting tasks, but also improved security of accounting data and increased transparency. Large organizations and multinationals are changing over to this new information systems and technologies to carry out their accounting tasks on global basis. This information system has led to standardization not only among the different divisions, locations and offices of a single organization, but also on a global basis.…

    • 427 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    There are several advancements in technology that has allowed companies from all different sizes to keep accurate financial data and records as well as decrease or as far as eliminate paper records. Technology has really advanced the accounting field by allowing the ability to process and interpret financial information more effective and efficient. Since technology has advanced with the introduction to the internet, companies now have the options have the ability to grow and expand beyond its region, and create new opportunity to expand internationally. New programs have been developed to assist in the internal operations and profitability. There is also the development of new software, which can help and meet the needs of the industry.…

    • 850 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Discussion Board #4

    • 255 Words
    • 2 Pages

    Romney, M.B. & Steinbart, P. J. (2012). Accounting Information Systems (12th Ed). Upper Saddle River, NJ: Prentice…

    • 255 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Accounting B Philosophy

    • 498 Words
    • 2 Pages

    Gelinas, U. J., Dull, R. B., & Wheeler, P. R. (2015). Accounting information systems. Cengage…

    • 498 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The Tale of Two Cities, a novel written by Charles Dickens, examines the violence of the French Revolution and the effect that the war had on the citizens of both England and France. Dickens writes the novel through the perspective of an English citizen. The novel opens with the statement, “It was the best of times, it was the worst of times, it was an age of wisdom it was the age of foolishness” (Dickens 1). He used the book to share his message and his thought on different subjects that he believed. Dickens applies Christian symbolism to the Tale of Two Cities to express the natural cycle and the inevitability of revolution.…

    • 764 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Information has been an important factor in decision making process. In recent times, people and organizations try their best to acquire information in a timely manner to aid them as they battle to manage their businesses. The increasing complexity of the society especially, as is manifested in social, political and economic institutions, has necessitated the more, man’s quest for more relevant information on a more regular basis. The processing of facts that can be traced back to thousand years ago.…

    • 1572 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Computers have the great impact on the profession of accounting. With the rapid growth of technology today, there is no doubt that computer will become a common asset in all profession.…

    • 551 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Tires

    • 19823 Words
    • 80 Pages

    Have you ever heard the sayings “knowledge is power” or “information is money”? When people talk about accounting, what they are really talking about is information. The information used by businesses, as well as the technology that supports that information, represents some of the most valuable assets for organizations around the world. Very often, the success of a business depends on effective creation, management, and use of information. As companies become ever more reliant on technology, the need for welleducated Management Information Systems (MIS) auditors and control professionals increases. Improved technology has the potential to dramatically improve business organizations and practices, reduce costs and exploit new business and investment opportunities. At the same time, companies face constant challenges in selecting and implementing these new technologies. Because of their high value and inherent complexity, the development, support, and auditing of information systems has become one of the fastest growing specialties in accounting. Graduates with special interests and skills in computing and technology have expansive opportunities. In addition to traditional accounting and auditing functions, MIS professionals perform evaluations of technologies and communications protocols involving electronic data interchange, client servers, local and wide area networks, data communications, telecommunications, and integrated voice/data/video systems. In public accounting, technology has impacted the auditing profession by extending the knowledge required to draw conclusions and the skills required to audit advanced accounting and information systems. With management consulting practices growing and information systems becoming a larger percentage of public accounting revenue, MIS professionals are in high demand. If you are considering a degree in computer or information systems, you…

    • 19823 Words
    • 80 Pages
    Powerful Essays