The Effects of Technology on the Accounting Profession Paper

The Effects of Technology on the Accounting Profession Paper

Let’s start with the accounting definition, accounting is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. Technology has its impact on each of the accounting aspects given in the definition, it has changed the face of accounting. Technology has had a great impact on the effectiveness and efficiency of the accounting profession. Gone are those days when the accounting information were maintained in the large books of journal, ledger, etc., these days all the accounting information is maintained in computers. In today’s world, business is not limited to any boundaries, Technology has not only has had an impact on the accounting within an organization, but with also the world.

Faster: with the help of technology the accounting is done much faster. With the help of technology a large amount of data can be processed quickly, i.e., recording accounting information, carrying out all the accounting procedures, preparing financial statements, and also presenting those reports. And in a way help the management, decision makers and investors analyze this bulky data easily.

Accuracy: even though a large amount of data is processed quickly, the accuracy of the accounting procedures is not compromised. Accuracy is one of the vital characteristics of technology, as software’s are created in such a way that every aspect of accounting is included, so as to have fewer errors.

Software: software has helped every aspect of our daily life. So have they on accounting profession. Software has made it easier to record all the transactions and presenting the financial statements. Accounting software’s are used by almost all the organizations. They need not be the same for every organization, they are usually tailor made, that is they are created keeping in mind the business carried out by the organization. MS office is a great example of how vastly we are dependent on technology. Almost all the organization depends on MS Office for their day to day accounting work.

Hardware: hardware’s are usually used as the output source, like the printers help in getting the printouts of the invoices, orders, receipts or reports whenever needed, projectors help in presentation regarding the budgets or analysis of financial state.

Storage: these days storage is not only limited to the storage devices, but has expanded to virtual storage. The storage devices like pen drive or external hard drive help you to take your data where ever you go, access it whenever you want, and also secure it with password to avoid the misuse. With the cloud storage we are one step ahead, no need to carry anything just have access to internet and you have your data in hand.

Internet: internet has impacted accounting vastly. Impact of internet has been tremendous for within