Technology Advancement Is Transforming Accounting Industry For The Better (Coursework Sample)

Technology advancement is transforming accounting industry for the better
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Introduction
Accounting has always been referred to as the language of business. Throughout the ages, this language has undergone a lot of changes. But what is worth noting is that, throughout all the witnessed changes, changes in technology have always been critical in making accounting job better and easier. As the technology knowledge evolves for the better so is the ability of the accountant’s statistical analysis (Pepe, 2011).The improvement in technology is always enhancing accountants’ abilities in interpreting data effectively and efficiently. Such technological advancements are equipping accountants with abilities that make it easier to interpret that business language. It is because of this that an accountant is now viewed as most trusted corporation business adviser (2011). Therefore, the introduction of new technologies in terms of gadgets, software, applications, and machines is from day to day is always transforming the accounting profession for the better. This paper is going to explain this concept so as to give a clear insight into what the situation is like.
On the intranet, extranet, and E-business
Nowadays, those accounting professional that have better knowledge of the internet use it for e-business. They apply it in the execution of various business processes in an enterprise. This is proving to be of great significance in accounting in that most accounting firms are in a position to coordinate internal management activities while at the same time they are able to use digital networks enhance customers’ relationship. There are also enterprise based applications which are in most cases used on an enterprise network. This is called intranet and it's of great help as it is used to disseminate programs and corporate policies to the employees. This improves the means of communication within the organization as it eases how the message is passed. Also, there is extranet which accounting professionals use to pass information to the outside world. It enables accounting firms to link with their clients. What this means, is that accounting firms, using this technology, they will be able to cut down on operation costs, have effective communication and also access their clients with much ease (Laudon, 2006).
Input, output, and processing
It is a desire for most clients to have efficient financial processes. Also, it is a desire of most accountants to have an efficient way that will be able to track clients’ information efficiently. So far, the answer to their desires is the changing technology. There have emerged digital processes and programs that make it easier to organize and track clients’ information. Today, when clients information is fed into a computer program, the data is processed and converted into useful information and then output gets the information to an accountant (Laudon, et al, 2006). From this point, it is possible for accountants to interpret clients’ information with success. Also, a client data can be organized and stored safely on a computer system. Therefore, the advancements in technology are making it possible for accountants to protect clients sensitive data and at the same time make it available for statistical analysis. This has eliminated the risky file storage rooms (Torgerson, 2007). Evolution in technology is, therefore, making accounting more efficient, bringing clients satisfactory and also enables accountants to safely store and interpret information with much ease.
Cloud computing
Cloud computing is one of the most recent technologies that have become popular. These services are being provided by different companies over the internet. The technology makes it possible to for an individual/organization to store information permanently. It also enables the use of applications on a remote server. Data is therefore stored permanently in a center that is shared by many users (Laudon, et al, 2006). Accounting firms will therefore not have to buy anything but would rather pay monthly subscriptions for what they need. This has the effect of freeing up space on firms’ hard drive. This technology is providing a way for accounting to store their data as at the same time providing security for their data. Also, one of the major ways cloud is benefiting accounting is the fact that the system can be accessed from many locations. In addition, accounting firms are not worried about purchasing hardware, maintaining them or even buying accounting software. What cloud computing will do, is that it is going to transform service delivery in that accountants will be in a position to react fast and with much more flexibility to clients’ needs.
Technology applications/software are minimizing accounting errors
The recent changes in technology have equipped accountants with tools that they can make use of and minimize margin errors. In the presence of specialized accounting applications, word processing tools it easy to see why there will be a dramatic improvement in accuracy in the accounting field. Also, there will be a great reduction in margin errors. Most accounting professionals use word tools such as Microsoft Excel in data entry as well as running ledgers. Other organizations have invested in software and applications that simplify the process and at the same time ensure accuracy in both financial reports and ledgers (WetFeet, 2008).This is going to be of great benefit, in that accounting professional will know how they will evade errors that can attract tax penalties or inform a wrong decision. Therefore, such technological changes will better the accounting ...