Disucss about the Impact of Technology on Accounting.
The development of a proposal and a complete research project requires a literature review. It is developed so that there is the basis of argument. The literature can guide in proving the research question or theory. It also helps understand the various approaches that have been used.
Technological advancement has improved accounting profitability and management.
We, therefore, develop literature that seeks to answer our theory by shaping the focus into the question (Belfo and Trigo 2013). From the literature review, we can further draw findings and recommendations (Dandago and Rufai 2014). As for the question developed, our recommendations would encourage businesses to endorse technology as it improves management.
Pepe, A. A., 6th January 2016. The impact of technology on the public accounting profession. MgiWorldwide, 1(Technology in Accounting), pp. 1-4. https://www.mgiworld.com/newsroom/2016/january/the-impact-of-technology-on-the-public-accounting-profession
Agnes Ann Pepe, a professional accountant acknowledges that the impact that technology has on accounting is huge. Ranging from the use of a computer to the use of smart items. Technology has therefore changed the aspect of accounting in terms of accurate analysis, the performance of series of events and complete reports (Demski 2014). The journal further emphasizes that towards the end of the 20th-century accounting changed (Geerts et al 2014). With the introduction of computers programs and software’s that changed accounting. With the introduction of excel software, it became easier to perform electronic worksheets. The accountant can make an analysis of huge figures, there could be also a great prediction of the future financial forecast with accuracy and credibility (Pepe 2016).
The article further deals with the human resource of an accountant. The life of an accountant is made even better by the use of technology. By the use of PC, an accountant has more time to concentrate on other issues other than the profession (Hollander, Denna and Cherrington 2015). This is because the workload has been reduced. The journal emphasizes that the traditional paperwork that was done by the accountant has been reduced into fewer manageable chunks. In a case study from the journal. An accountant confesses to the widespread use of a PC. Her work becomes even easier, he had to deal with reduced paperwork than before. She further confesses to having reduced her work time (Pepe 2016). Previously she would take up to 20 hours working on accounting profits per week. This has been reduced to a week, giving her more time to concentrate on other issues. She says that with the coming of technology she has been able to create time to further her studies.
The journal article exploits the way technology has impacted in managing accounting information. With the coming of the information sharing entities such as the email and the internet (Kalenskaya, Gafurov and Novenkova n.d). There has been an easy transfer of information globally (Hunton 2015). An accountant can easily share information with other company stakeholders that include managers, directors, and CEO. For client organization, the article informs that. It easier to share financial information to clients through their emails. This management of information also made it easy to share professional documents and experiences with other accountants globally. The global web has made it easier to look at various challenging decisions and find ways of working them out through the internet (Kerr 2014). The internet, therefore, creates an avenue for meeting fellow professional accountants.
The article also further exploits the use of technology in retrieving important and key information. Information on accounting is saved on the internet and other external saving materials. These materials help to retrieve the information even faster when the need arises to use them. The internet reduces the information data to manageable units. The units can, therefore, be used when needed (Kalenskaya, Gafurov and Novenkova n.d). This is contrary to the filling storage that was done in the previous. Retrieving information from a list of files can be difficult being that the pieces of paper are not reduced to manageable units. The risk that is surrounded by using the file can be so many in terms of risk analysi
Journal of Asia Pacific Journal of multimedia service Vol 3 by Francis pol takes a quite shocking view on the effects of technology on accounting. The Journal compares the effect it has had on the rates of employment (Lim 2013). The use of bookkeeping has reduced in the companies and organizations. Companies prefer employing accountants that have managerial skills (Lim 2013). The companies feel that with the increase in technology the accountant are less engaged in their duties for the company. Employing one with managerial skills ensures that the individual apart from taking accounting duties, also take managerial duties. The accounting duties are only to supplement the overall job. Companies have even previously complained of many accountants who work from home. They view that transferring this duty is more economical and efficient. The management process has seen accountant converted to financial experts. Financial expert’s manager can now improve quality in the financial information reported in this entities of financial statements (Lim 2013).
This journal by Roger Alex is derived from the book, 5 ways technology is transforming accounting. The journal focuses on the rapid change from technology that impacts on accounting. Cloud computing is based on the development of soft wares, platform, and infrastructure. The cloud computing will be disadvantageous for a company that has already invested in servers and any other resources for that matter (Mami?, Sa?er and Olui? 2014). The company has to keep updating each time a new technology for accounting arises. The update of each accounting technological advancement might be very expensive to adapt. This, therefore, proves the explanation from the book. Accounting could be transformed at a very faster rate but this comes with a lot of costs and need (Drew 2016). The needs might be too much for a business or company to afford therefore affecting the profitability of the company in the long run
The journal further identifies the risk of technological accounting. The book encourages technological accounting. It points out that it easier to undertake audit activities with the use technology. Forensic auditing easily depends on technology. This reduces the risk that might arise from auditing. However, the journal identifies the risk that might arise from software crashes. Software crashes are the period when the technological facilities have undergone various disadvantage and therefore they cannot work. The journal explains the company disadvantage if a software loses all the companies important accounting information. The might affect the company such that it might not rise financially again
The four articles seem to agree that profitability realized through endorsing technology in the accounting field. The first article agrees that profitability in accounting is realized through professional human management.
The second article also supports the realization of profitability but through proper management of information. It also expresses that profitability of technical accounting can be done through exposure. Exposure of an accountant through technology is profit benefit to businesses and organization (Simkin, Norman and Rose 2014).
The third article agrees that technological advancement can lead to profitability. But it does this through cautioning. It warns of considering risk assessment before implementing technological advancements in the accounting field.
The fourth article agrees the technological advancement will lead to profitability. It proves this by covering the importance of technological accounting in system auditing. The accuracy in auditing assures profitability.
Though the four articles express similarity in the shared theme that technological advancement leads to profitability realization in a company. They do so differently. The first and second articles argue from an affirmative point of view. They argue that by use of technological advancement, the human resource and the information management is improved therefore benefitting then the company or the business.
The third and the fourth articles reason from a rather dispensable grounds. They focus on the two ways that if not properly adjusted then technological advancement might not lead to profitability. The third article looks at employment risk while the fourth educates on software risk.
The four journals, therefore, reason from different themes and ground.
We can draw the managerial recommendations from the four kinds of literature reviewed. The first recommendation is that the businesses and huge organization that handle a large amount of financial data should use technology to enhance their accounting accuracy in the company. The finding that is drawn from these literary journals is. For a company that seeks to enhance profitability the use of technology is paramount (Smith and Cordina 2014). From this journal, it is advisable that business endorse technology as a way of improving their human resource. This will impact on the profitability of the company and that of the professional individual. This is part of human resource management.
Based on the third journal. It is recommendable that the endorsement of technology can help in accounting management and retrieval of crucial information (Smith and Cordina 2014).
It also recommendable that one has to become a financial manager currently to ensure that he secures an accountant job. The journal also discourages the use of technology as it takes over the manpower labor. On the grounds of employment, managers should maintain traditional accounting systems.
It is recommendable to invest in accounting technology gradually and not through an overhaul.
The company organizes frequent auditing of the accounting technology software. It is therefore recommended that a company has to employ a technological expert. The expert will deal with any risk arising from technological accounting. It is also advisable that companies invest in technology for easy auditing practices.
The main limitation that arises from the technological accounting for profitability, is the expensive nature of investing in smart products (Smith and Cordina 2014). Other limitations include software risk, workability, and credibility. Future research will seem to develop the risk that investing in technological advancement causes. The future research study will also look at how accounting companies have benefited from technological advancement (Suryanto T 2016).
Conclusion
The review can, therefore, be used for a research study in the accounting field (Suryanto 2016).
References
Belfo, F. and Trigo, A., 2016. Accounting information systems: Tradition and future directions. Procedia Technology, 9, pp.536-546.
Dandago, K.I. and Rufai, A.S., 2014. Information technology and accounting information system in the Nigerian banking industry. Asian Economic and Financial Review, 4(5), pp.655-670.
Demski, J., 2014. Managerial uses of accounting information. Springer Science & Business Media.
Drew, J., October 13, 2016 . 5 Ways Technology Is Transforming Accounting. Roger CPA Review, 1(Technology in Accounting), pp. 1-4. . https://www.rogercpareview.com/blog/5-ways-technology-transforming-accounting
Geerts, G.L., Graham, L.E., Mauldin, E.G., McCarthy, W.E. and Richardson, V.J., 2014. Integrating information technology into accounting research and practice. Accounting Horizons, 27(4), pp.815-840.
Hollander, A., Denna, E. and Cherrington, J.O., 2015. Accounting, information technology, and business solutions. McGraw-Hill Higher Education.
Hunton, J.E., 2015. Blending information and communication technology with accounting research. Accounting Horizons, 16(1), pp.55-67.
Kalenskaya, N., Gafurov, I. and Novenkova, A., n.d Procedia Economics and Finance.
Kerr, O.S., 2014. Accounting for technological change. Harv. JL & Pub. Pol’y, 36, p.403.
Lim, F.P.C., 2013. Impact of information technology on accounting systems. Asia-Pasific Jornal of Multimedia Services Convergent with Art, Humanities and Socialgy, 3(2), pp.93-106. https://jse.or.kr/AJMAHS/papers/v3n2/6.pdf
Mami? Sa?er, I. and Olui?, A., 2014. Information Technology and Accounting Information Systems’ Quality in Croatian Middle and Large Companies. Journal of information and Organizational Sciences, 37(2), pp.117-126.
Pepe, A. A., 6th January 2016. The impact of technology on the public accounting profession. MgiWorldwide, 1(Technology in Accounting), pp. 1-4. https://www.mgiworld.com/newsroom/2016/january/the-impact-of-technology-on-the-public-accounting-profession
Simkin, M.G., Norman, C.S. and Rose, J., 2014. Accounting information systems. John Wiley & Sons.
Smith, J.A. and Cordina, R., 2014. The role of accounting in high-technology investments. The British accounting review, 46(3), pp.309-322.
Suryanto, T., 2016. Dividend policy, information technology, accounting reporting to investor reaction and fraud prevention. International Journal of Economic Perspectives, 10(1), p.138.
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