technology in accounting essay

technology in accounting essay

The Importance of Technology in Accounting

1. Introduction

The information generated by the computer for accounting includes the use of new instruments, equipment, procedures, methodologies, and are incorporated into the organization. The accounting sector has a wide variety of information, it is observed that most of this information is of great importance necessary to involve civil construction developers, providers, interested parties, institutions, and entities such as the Receita Federal. Several factors influenced the increased interest of organizations in accounting information through the computer system. To understand the importance of technology, it is necessary to demonstrate the application of the stages of accounting in a company. This suggests that it is necessary to analyze if the generated information corresponds effectively to the socially established objectives.

Business has always expanded and reached new markets. It generated innovations and was successful in countless trading ideas. Globalization brought many benefits and challenges at the same time. As businesses are established outside the boundaries of countries, they need to produce clear financial information. Accounting is a way of analyzing, interpreting, and transmitting financial information of individuals and institutions. It has the purpose of meeting the need for decision-making and accounting. It is possible to say that business decisions are based on accounting that provides accurate and timely financial and operational information. The use of technology associated with the accounting sector generates information that is able to reflect the economic consequences of transactions or events in a given period, as well as information that can reflect the different components that compose the wealth of the companies in the same period. It is important to stress that the inclusion of computer science in accounting in the mercantile perspective was due to the infinity of information that is processed by the account.

2. Benefits of Technology in Accounting

Technology in accounting allows businesses to work faster and at a higher scale, which grows the company’s internal performance and the efficiency of the organization. Nowadays, most accounting tasks are processed using dedicated software solutions, and this software allows the company to increase its activities in a secure and flexible manner. Delivering secure, confidential data is a must for today’s accounting firms, as it is desired from the clients. Protecting your clients’ financial and sensitive data should be a top priority. There are many physical protections that an accounting firm can invest in: ensuring sensitive data is stored and not visible, installing security cameras, client confidentiality agreements, backups, or redesigning the office to make sure that everything sensitive is locked away.

What are the benefits of technology in accounting? Technology in accounting enhances the accuracy of your financial records by reducing human errors, as long as the data entered is accurate. Some data evolved from a solution to an existing problem. The evolution of technology in accounting goes way back in time and is driven by economic, social, human knowledge, and the stage of development of human society. An argument we couldn’t contradict is the importance of accounting and today’s inability to view the accounting world without technology. The primary benefits of technology in accounting and business management are getting into the automation process, generating beneficial time savings, and improvements in the company’s internal workflow.

3. Challenges and Solutions in Implementing Technology

Moreover, to the accounting function, the vendor management solutions have a number of benefits as gaps between the AP and payables function and the accounting system itself are minimized with the management solutions. These solutions provide a strong flow of data that could be accurate. Such a strong data flow could help in improving the close of books and quarterly cycle processes or other month-end. Another benefit is the strength of auditing and compliance practices, as the collection and retention of documentation for the business will be facilitated, as the glance stops saving time on the back-end processes when using the same process for approving an invoice. When manual forms send metaphorically, they can allow never participants to enter inappropriate invoices in the organization. Finally, these centralized programs that can help improve the internal control framework, improve potentialitive business routing and approvals needed as well as workflows making the process much better audited and efficient. In addition, links can also be between the processes and applications to organizations use control over the information and filters, approval business rules and certain combinations initiated for different business units throughout the entire life cycle.

The biggest challenge in implementing any technology system is integrating it with all the technology suites that the organization currently uses. However, by deliberately engaging the services of technology and solutions vendors, organizations are now able to overcome issues to create an interconnected technology solution to harmonize all their systems. With the use of the internet, there are currently a variety of systems that are available to customers. On completion, these solutions can be marketed to customers via the internet. These vendors offer a variety of services, from diagnostics to reporting, and analysis can be used. An organization coupling this suite of sorts that is revenue and collections can be stronger and capitalize on such benefits of an interconnected and updated view of customers in a way that is more efficient which is an improvement in the collection of revenue. Such solutions can also focus on the laundering of money and payment solutions and this can provide benefits to the organization as it can help reduce exposure to be at risk due to such processes that are ailing.

4. Future Trends in Technology and Accounting

Technological development in socio-economic constructs revolves around not just evolving from previously stable innovative branches, creating new types of jobs, and challenging older “routine” occupations, but also reshaping existing boundaries between areas. One of the fields with the potential for tremendous advancement of new revolutionary technologies is accounting. Accounting is considered as a prime example of the potential transformative power of new technologies. Yoo in his seminal book, claims that as far back as the 1990s, the main technological revolution “coming tomorrow” would completely change the current state of affairs in the nearest future. According to Yoo, the most promising new technology in accounting was digital computing. In punctuated patterns of computer technology, domestic accounting seemed to have stagnated in it and was used like a traditional employment. Therefore, computer technology succeeded in making accounting a more mature profession. However, as payroll systems emerged, accounting technologies revolutionized SME (small and medium-sized business) computing.

4.2. Artificial Intelligence

Organizations worldwide are currently undertaking a major transformation in terms of how they run various aspects of their business. For example, many firms are replacing their finance and in-house production software with cloud-based operations. This shift allows companies to take greater advantage of technology and business processes to improve their operations with less difficulty and lower capital expenditures. Hence, in a similar manner to business operations, accounting activities are also being transformed by technology. Cloud-based accounting services provide a range of advantages in relation to financial management and operations of business establishments. The emergence of Cloud Accounting Technologies (CATs) is reshaping accounting through collaborations, improving transactions and organization, and reducing time and waste not just within accounting, but also within the enterprise in general. With the advancement of technology, businesses are becoming more interested in Cloud Accounting Technologies (CATs) that can make accounting information more accessible and more useful than traditional accounting technologies. To optimize our understanding of Cloud Accounting Technologies (CATs), it is essential to understand how these technologies can improve the creation, processing, and distribution of accounting information, thus improving accounting information.

4.1. Cloud Computing

5. Conclusion

The ubiquitous use of technology in contemporary society emphasizes its indispensability in accounting. The use of computer systems is an established phenomenon in the contemporary accounting workplace. The use of such systems is pervasive across all levels of accounting work, driving down the demand for manual accounting, which was once the predominant form of accounting work. However, personal computers became a mainstay in small practices and slowly, gradually re-appropriated to become essential accounting tools in large entities. Along with their various functionalities, the advent of mainframe computer systems brought about a host of advantages to the accounting profession. Among its list of advantages, the mainframe computer system contributed to the development of batch and online processing functions. In so doing, it proceeded with the automation of data processing. The reliance on mainframes for accounting system development continued anew.

The importance of technology in the accounting profession is well established. Once thought to be “obsolete” and replaced by digitized processes, the accounting profession has progressively incorporated technologies, programmed information, and qualitative systems, even contributing to technical disruption. With technological advancements, the requirements for accounting functions and audits have become more robust. Economic stability continues to guide exceptional automation, which would ensure endless changes in the accounting profession, with or without agreement from the human public. The related technology arguments offer differing pondering situations with major policy thrusts that reaffirm the 21st-century accounting profession credentials. Such credentials pose challenges to stakeholders requiring immediate attention, and research gaps importantly need to be addressed.