Effects of technology in profession of accounting

Effects of Technology in Profession of Accounting

Introduction

Accounting functions in businesses are being conducted in many different ways. Live system of accounting is allowed in businesses through processing and real time billing. In this way, operators process the transactions. All these processed transactions are integrated simultaneously into consistently updated management/financial system for accounting. Impacts of transactions and impact on the loss and profit of company accounts are noticeable when they are executed. Continuous updating of transactions becomes helpful in monitoring the business performance transaction by transaction. Preventive or corrective actions can be taken by continuously monitoring the transactions. When the values or data is inputted once then these can be analyzed quickly. These values or data can be utilized in compiling reports and projection that will develop some elements of secondary operations. Automatic audit trails for finance can provide reliable, acceptable and fast way of observing financial transactions in the business (Anonymous, 2009).

New Technologies in Accounting Process

Accounting processes have seen a great change because of the evolution of information technology in an indispensible element of businesses i.e. accounting. There is a manifested and broad impact of new information technologies in most diverse ways in companies. There is a great impact in development and progress of business's accounting processes because of new information technologies. Today e-business is being conducted by accounting professionals. Extranet and intranet are also helpful in developing accounting process. Intranet enables the distribution of information to the workers or employees of the organization. Internal documents, search tools and emails are used to distribute information in intranet. Communication outside the organization can also be accomplished to develop accounting process through extranet. Due to the technology of extranet, travel costs can be minimized by electronically importing and exporting files. ERP, SCM, AIS and other new ...