Impact Of Technological Development On Accounting

Identification and exploration of future profession

Describe about the Project Context and Proposal for Accounting Professional.

The accountants in practice should enhance their comprehension and capacity to utilize and influence innovation. For instance, incorporated Enterprise Resource Planning (ERP) with virtual access utilizing cell phones, correspondence through online networking and adjustable easy to use sites with up to date contents will be principal parts of practice. The introduction and adoption of technological advancements is essential if the practioning accountants want to effectively coordinate with the accounting processes and perform their duties. Thus, I took Accounting as my future profession to distinguish the effect of technological developments on accounting. As the most trusted business counselors want I would like to have an outstanding  career as the basic role of contact in context to the technological advancements. I have to develop my aptitudes as to the propelled options open to clients with the goal that I can point them in the right heading. I ought to be more open about creating propels, as our work will likely end up being substantially more in view of computers. In the end, what will isolate one accountant from another is not their ability to regulate IT yet rather their ability to examine better with clients and to use the time saved by advancement to make client associations and transform into a viable trusted business instructor. Facilitate improvement in innovation is important to empower evaluators to complete their reviews in a paperless situation, empowering examiners to accomplish a paperless trail of review proof for outside review purposes. With the increase in developments for the budgetary market, the Computer Assisted Auditing Techniques (CAAT’s) as well as computer programs have a significant role for achieving the desired outcomes from accounting processes.          

The profession in accounting has dependably shaped and supported organizations, different associations, and economies of various kinds and sizes. To keep on adding esteem, proficient accountants and the individuals who teach and utilize them must have the capacity to address current issues and foresee emerging requests. The quick pace of progress in computerized advancements, the globalization of business and the tailwinds of the 2008 – 2009 worldwide budgetary emergency are among many elements that make this especially difficult. The Association of Chartered Certified Accountants (ACCA) has directed worldwide research to spread its future awareness and sharing the outcomes so they can likewise illuminate the preparations for stakeholders of the business organization. Expanded direction and stronger administration will have the best effect on the profession in the years to 2025 (Kaplan & Atkinson, 2015). All individuals from the profession will be influenced straightforwardly or in a roundabout way and to differing degrees. For instance, proficient accountants in numerous parts and nations will be influenced by intergovernmental charge activity to point of confinement base disintegration and benefit moving, yet masters in assessment will encounter the best effect. In the meantime, reasonableness in tax will keep on rising in unmistakable quality in political and social plans everywhere. Collier (2015), states that the requirement of professional accountants increase with the progress of an organization. They will require the abilities, aptitudes and standpoint to empower them to meet more demands for comprehensive, forward-looking data and specially appointed reporting from associates. The professional accountants play an important role in business to ensure the quality of financial reporting. Professional accountants in business often find themselves being at the frontline of safeguarding the integrity of financial reporting.

Critical review on understanding of becoming a professional

Working title of project

The title for the project as an accounting professional has been determined to be “Impact of technological development on accounting”.

The recent developments in the field of Information technology has led the invention of systems that are essential for modern day accounting. According to Chae, Koh and Prybutok (2014), the recent trend in the use of Accounting information systems is that those are being used by most business entities starting from large corporations to micro corporations. The accounting systems are used by the business organizations for management of their operations (Christensen, 2013). In this study, the evaluation will be done to determine the impact of technological development on accounting. This particular research will be conducted as accounting is a critical factor for management of business operations. The introduction of information technology in accounting enhances the speed as well as accurateness of computations. Further discussions will be carried out for enhancing flexibility to modify and safely store information with the implementation of Information technology.

The operation processes of the business entities have changed with the help of computers, internet and software. The advancements in accounting systems have also facilitated technological developments. The field of accounting deals with business information hence it is important to determine the impact of technological developments on accounting (Davenport, 2013).

The chosen profession is accounting and it has a great role to play in the management of business operations. The application of technological developments in the field of accounting helps to improve the area of business. Hence, it is essential to analyze the type of impact that the implementations of technological developments have on accounting.

This study determines the impact of technological developments on accounting so the main question for this research has been prepared as below:

What role does technological developments play in the field of accounting?

The main question being stated for this research is supported by the following questions:

What is the importance of accounting in business operations?

What is the role of technological developments in accounting?

How does technological developments influence accounting?

Do the technological developments can replace the role of an accountant in accounting systems?

In context to this particular research, the main aim and objective is:

To analyze the impact of technological developments in the field of accounting.

Some of the objectives that has been prepared for supporting the main objective and to ensure success of the project are provided as below:

Project Proposal

To analyze the importance of accounting for business operations.

To determine the role of technological developments for accounting.

To analyze the impact of technological development on accounting.

To determine whether the technological developments can replace the role of man in accounting systems.

Information Technology: According to Kleis et al., (2012), Data innovation plays a postitive role for influencing the techniques in accouting. It is difficult to find anybody doing manual bookkeeping with paper and pencil these days. Since bookkeeping is about overseeing information particularly business information. Any advances here will have a constructive outcome in the bookkeeping division, from the times of the adding machine worked by battery to the future era computers.

Equipment for Accounting: The most apparent impact of advancement in bookkeeping is the accessibility of computers, printers, scanners and faxes. Data Technology (IT) changed the bookkeeping scene like no necessity of any more green paper sheets and pencils. The inspiring news is that expenses are sensible on most of the apparatus (Mithas et al., 2012). It is not just for immense organizations; private project can get IT adapt adequately and at a sensible cost. The machines are refined, brisk and easy to use.

Technological Limitations in Accounting: Diatmika, Irianto & Baridwan (2016) illustrates that innovative advances can change the way organizations work, including the way accounting is taken care of. Automated accounting frameworks streamline the accounting procedure while effectively putting away money related data for an organization (Taheri, Momeni & Hashemi, 2016). Regardless of the advantages, innovation in accounting has restrictions and destructions that can contrarily affect business (Ismail & King, 2014). A consciousness of those issues permits to address them before they get to be distinctly real issues.

Research Philosophy: For this specific research, positivism philosophy will be utilized as it aides as a part of breaking down the hidden data on chosen subject (Amiri & Amiri, 2014). It discovers data identified with measuring the effect of technological developments on accounting.

Research Approach: The chosen topic will be broken down utilizing deductive approach as it tries to concentrate the ideas in view of the utilization of technological developments for accounting in business associations (Taylor, Bogdan & DeVault, 2015). The chosen approach is proper, as it is precise to relate the chosen subject with hypotheses.

H₀: Technological developments have significant impact in the field of accounting.

H₁: Technological developments have no significant impact in the field of accouting.

Literature Review

Research Design: For this particular research, descriptive research design is proper as it gives point-by-point process required in the achievability investigation to quantify the effect that technological developments have on accounting.

Data Sources: The whole research study will be founded on descriptive information that is optional information assembled on selected research topic (Khairi & Baridwan, 2015). It is proper for this specific research study as it requires less investment, and even the information are precise.   

Data Analysis Technique: In this study, qualitative analysis will be utilized to lead this review effectively so that the effect of technological developments on accounting are looked into appropriately and precisely (Panneerselvam, 2014). This information method comprises of analysing case studies and contextual investigations on the execution of technological developments for accounting.

NAME OF TASK	STARTING DATE	ENDING DATE	DURATION NO. OF DAYS
PROJECT PROPOSAL	12/12/2016	13/12/2016	1
LITERATURE REVIEW	13/12/2016	17/12/2016	4
DATA COLLECTION	17/12/2016	15/01/2017	3
DATA ANALYSIS	16/01/2017	22/01/2017	21
FINAL REPORT SUBMISSION	23/01/2017	07/02/2017	11

 

References

Amiri, S., & Amiri, N. (2014). Information Technology (IT) and its Role in Accounting Practice.

Chae, H. C., Koh, C. E., & Prybutok, V. R. (2014). Information Technology Capability and Firm Performance: Contradictory Findings and Their Possible Causes. Mis Quarterly, 38(1), 305-326.

Christensen, C. (2013). The innovator’s dilemma: when new technologies cause great firms to fail. Harvard Business Review Press.

Collier, P. M. (2015). Accounting for managers: Interpreting accounting information for decision making. John Wiley & Sons.

Davenport, T. H. (2013). Process innovation: reengineering work through information technology. Harvard Business Press.

Diatmika, I. W. B., Irianto, G., & Baridwan, Z. (2016). Determinants of Behavior Intention Of Accounting Information Systems Based Information Technology Acceptance. Imperial Journal of Interdisciplinary Research, 2(8).

Dowling, C. (2014). A Big 4 firm’s use of information technology to control the audit process: How an audit support system is changing auditor behavior. Contemporary Accounting Research, 31(1), 230-252.

Ismail, N. A., & King, M. (2014). Factors influencing the alignment of accounting information systems in small and medium sized Malaysian manufacturing firms. Journal of Information Systems and Small Business, 1(1-2), 1-20.

Kaplan, R. S., & Atkinson, A. A. (2015). Advanced management accounting. PHI Learning.

Khairi, M. S., & Baridwan, Z. (2015). An empirical study on organizational acceptance accounting information systems in Sharia banking. The International Journal of Accounting and Business Society, 23(1), 97-122.

Kleis, L., Chwelos, P., Ramirez, R. V., & Cockburn, I. (2012). Information technology and intangible output: The impact of IT investment on innovation productivity. Information Systems Research, 23(1), 42-59.

Mithas, S., Tafti, A. R., Bardhan, I., & Goh, J. M. (2012). Information technology and firm profitability: mechanisms and empirical evidence. Mis Quarterly, 36(1), 205-224.

Panneerselvam, R. (2014). Research methodology. PHI Learning Pvt. Ltd..

Taheri, S., Momeni, A. R., & Hashemi, H. (2016). Analyzing The Result Of The Effect Of Information Technology On Qualitative Features Of Information In Accounting. Journal of Current Research in Science, (1), 623.

Taylor, S. J., Bogdan, R., & DeVault, M. (2015). Introduction to qualitative research methods: A guidebook and resource. John Wiley & Sons.