...From the early days of clay tokens to the invention of the abacus, accounting is as old as civilization. It wasn’t until the commercial revolution at the end of the dark ages that double-entry bookkeeping came into existence. (It began in the Venice/Florence area in Italy.) A hundred years later, Luca Pacioli, a Franciscan monk, wrote a math book that suggested merchants needed three things: sufficient cash or credit, an accounting system, and a good bookkeeper. Today accounting is commonly offered as a major of study. What do you, as a prospective accounting major, need to know about the field and the technological advances in accounting? What is commonly known today as “cost accounting” (defined as “The discipline of estimating, tracking and controlling product and service costs”) didn’t start until the late 18th century, and was spawned by an unlikely source—a world famous potter. Josiah Wedgwood was a highly successful potter when a depression hit, and he discovered that not only were his clerks ignoring much needed paperwork, they were also stealing money hand over fist. He took the time to examine the books in detail, noting inaccuracies and becoming aware of the importance of calculating overhead into the costs of his pottery. He hired a new clerk and began weekly accounting reviews, and according to historians, the concepts of “economies of scale” and “sunk costs” were discovered. He changed the prices of his pottery to reflect the influence of demand, creating both...
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...Technology in Accounting Rabbit XACC/210 - Accounting Information Systems 08/18/2013 Gregory Ellis Technology in Accounting Information systems are changing various aspects of the accounting profession by dictating the ways that businesses operate. Before the use of computers, or AIS, accountants had to use hand-written ledgers and spreadsheets to keep track of business records. This old method of accounting took hours of time, cases of paperwork, and cost the businesses extra money. If an employer needed to found out information on payroll or inventory, they would have to shuffle through cases and files of paperwork. The more time it took to do this, the more money the employer lost. The businesses that can quickly process raw data and display the information managers require, gain a competitive advantage over companies that lack to ability to move data efficiently through the organization. Accounting information systems have sped up the time that it takes for an accountant to view or change crucial data. Accounting information systems are used to perform tasks in such areas as payroll, accounts receivable, accounts payable, inventory, and budgeting in real-time. It is important for any accountant to stay current with all of the new technological advances. According to “Bagranoff, N. A., Simkin, M. G., & Norman, C. S.” (2010), “Career opportunities abound for those with a solid foundation in Accounting Information Systems, including traditional...
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...Effects of Technology on the Accounting Accounting is one of the key elements in any organization, which financial health highly depends on its accuracy. Modern enterprise involves a huge number of financial transactions, which reflected through the relevant information flows. Accounting includes many routine operations, repetition of the same computing operations, as well as preparation of financial reports and payment documents. In this regard, the traditional accounting involves a complex and painstaking work of accountants, which requires considerable effort and knowledge. The modern development of information technologies and their wide application in economic practice can solve this problem by automating some of the accounting processes. Currently, the use of information systems in the enterprise became an integral part of the production process. Application of the system has allowed the company to automate operations on registration receipts, transfers and disposals of its assets, as well as to improve the overall degree of control, the availability, and conditions. In addition, automation of accounting has other advantages over the traditional way of accounting, such as ability to improve employees productivity, reduce the influence of the "human factor”, increase the speed of reporting and documentation, as well as to provide the possibility of parallel accounting in a several different standards. Implementation of information systems and technologies in the work...
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...Effects of Technology on the Accounting Profession ACC/210 August 15, 2011 Effects of Technology on the Accounting Profession Technology, information, software, and even the machines used to input, translate, and interpret the data we enter are ever evolving at shocking rates. We must constantly stay on top of our skills in order to be able to navigate through the vast screens, shortcuts, functions, and utilities stored in these small computers that have the capacity to do what would take a room full of human brains to do in a fraction of the time. In a time where nearly every occupation can be automated, accounting is nearly no exception, but notice I did say ‘nearly.’ With a vast array of software programs, data collection methods, and forms of technologies to keep accounting professionals up to the minute on their financials, there is little reason to justify the use of the antiquated legal sized general ledger books anymore. By integrating AIS effectively in the manufacturing industry, the accounting department where I work has been able to promptly and accurately produce cost analysis reports for the machines we produce, determine our SG&A at any given point, and determine whether a customer’s credit can be extended based on their average days of payment. AIS are invaluable tools that are overlooked for the value that they truly add to an accounting department. An accounting information system is a system that combines traditional accounting practices such as...
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...The Effects of Technology on the Accounting Profession Kaishia Johnson ACC/340 April 21, 2014 Judy Thomas The Effects of Technology on the Accounting Profession Accounting Information Systems are defined as a collection of data and processing procedures that create needed information for its users, and exists at the intersection of two important disciplines: (1) accounting and (2) information systems (Bagarnoff, 2008, pg. 1). Knowing and understanding accounting information systems will allow accountants to possess a level of proficiency from using computers and the specialized software required to prepare the necessary financial statements. This paper will describe how information systems are changing the various aspects of the accounting profession. A description of the variety of new technologies and their effect on the accounting process will be also being discussed. Lastly the paper will discuss how these technologies have changed the way tax accounting is performed at Jackson Hewitt. Information systems are changing the various aspects of the accounting profession because it has eliminated the need to create and store enormous stacks of paperwork that has to be kept track of for financial reporting. The effect of accounting technology has been positive for accountants and firms, resulting in financial reports that are constructed faster and contain fewer errors. Information systems are used by accounting firms and departments to store and...
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...Alicia Mazenkas Cythia Bus251 May 3, 2011 Pros and Cons of technology and Accounting I have been doing accounting for the last 13 years. When I started I would enter everything by hand on paper. I would have to figure payroll time cards and all the taxes with a calculator and enter them in the proper columns. I would hand write payroll and account payable checks, along with filing all the proper forms. This would take me several hours and days. Now with all the technology in the world and all the programs for accounting, bookkeeping has become so much easier. What use to take several hours for one or more person now only takes a fraction of the time to complete, all you have to do is just plug in the numbers in the program you are using and the computer does the rest. Entering all the numbers in to the computer also makes for more accuracy and more productivity. The technology world has made it with computers, printers, fax machines and the ease of sharing information over the internet. The cost of owning such items has become more affordable so that even a small company can take advantage of all the resourses. Along with all the equipment available there are also many different programs available: from the simplest programs to the more soficicated. Quicken has become a very affordable and sought after program for the home for personal bookkeeping along with Quick Books for small and large businesses. Alicia Mazenkas...
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...Vol. 1, No. 1, June, 2010 2010-023X Information Technology roles in Accounting Tasks – A Multiple-case Study Maria do Céu Gaspar Alves Abstract—Nowadays the business world is changing at a faster and faster pace. The reasons given for this is globalization, highs information technology (IT) investments and the rapid pace of technological change. Organizations are responding in different ways and at different rates to the wide range of IT based opportunities and pressures. The purpose of this paper is to focus on the effects of IT related organizational changes on the management accounting function and to contribute to the body of knowledge about to what extent IT affects the ability to solve accounting tasks. The relationship between IT and accounting practices was investigated qualitatively using six case studies and we will measure the impact of IT on accountants’ tasks. The findings suggest a tendency for change and the decentralization of accounting tasks. Index Terms—Accounting, Accounting Information Systems, Financial Documents, Information Technology, Management Information System. I. INTRODUCTION Nowadays the business world is changing at a faster and faster pace. The reasons given for this is globalization, highs IT investments and the rapid pace of technological change in combination with escalating costs of research and development (Frishamar, 2002). The role of information technology (IT) has shifted over the last decades (Teng & Calhoun...
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...Effects of Technology on the Accounting Advances in technology clearly have affected many ambiguous processes to simplify, efficiency, record or easy storage, and create accuracy of any manual process. The accounting profession is one of many which have clearly changed its innovative way of conducting and processing systematically, but its principles have stayed the same. Information systems (IS) or computerized technologies purpose is to create efficiencies and simplify the manner in which data is collected, stored, and processed. It also provides the corporation with easy access to reports, accuracy, and historical data. In today’s world of technology accounting process for any organization is easily captured in a computerized system. Organizations maintain information of sales, supplies purchased, accounts receivables or billing process, and accounts payable on computerized systems. This allows the sharing of data, whereas in a manual process the accountant would have to retrieve the information from each department and maintain records in a spreadsheet and manually calculating the totals. This manual process was tedious, time consuming, and had many gaps for errors. In our current technologies there are software applications that provide the accountant with the necessary tools to obtain the data, calculate the totals and generate reports. So how does the effects of technology effect accounting? It has a positive effect because it simplifies the process but adds new requirements...
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...leads to data exchange difficulty. Moreover, the limited capital and scarce resource restrained front end service capability. Based on the analysis, we recommend Empire to address the B2B, B2C to facilitate the back-end system and front end service. Furthermore, the systems of Empire are not integrated. The use of multiple systems and manual intervention lead to inefficiency in Accounting and Customer Services teams. We recommend Empire to implement ERP to improve the efficiency and growing potential. (Table 1: Strategic Alignment) From the case and our study, there are different projects that could be launched to increase fund, revenue and promote the efficiency. By using scoring we found out that going public is our “must do” project(Table 2: Project Portfolio). AGC’s Recommended Portfolio As we mentioned above that we used scoring to pick a “must do” project, which is going public. To assist IPO implementation, having an ERP system is the most crucial project for Empire. Highlighted Projects to Be Taken Forward to Gate B The highlighted projects to take forward to Gate B are Accounting Systems, Sarbanes Oxley Software, Fraud, Identity and...
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...Effects of Technology on the Accounting Profession University of Phoenix ACC/340 Accounting Information Systems Effects of Technology on the Accounting Profession Businesses have become more competitive, consumers are more informed, and technology has changed the way the world communicates. Information technology (IT) and the resulting ‘information age’ are continuously impacting every facet of accounting. (Bagranoff, Simkin, & Strand-Norman, 2006) This paper will examine how accounting information systems (AIS) are bringing about changes within the accounting profession. Additionally, a variety of technologies and how they affect accounting practices at Exclusively Yours Salon will be discussed. Accounting Information Systems and the Accounting Profession Today’s business environment is marked by increased competition and the need for better and faster information for decision making. According to Bagranoff, Simkin, and Strand-Norman, 2006: Because IT now captures transactions, AISs can produce financial statements almost in real time. Of course, some of the adjustments that accountants must make to the records are not done minute-by-minute, but a business can certainly track sales and many of its expenses continually. (p. 15) Additionally, large amounts of accounting records are increasingly presented only in an electronic fashion. Companies are reporting their financial outcome quarterly and an increasing number of companies are transferring their financial...
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...The Effects of Technology on the Accounting Profession Eliot Sherman ACC/340 June 11, 2015 Michael Raponi According to Accounting Web, the next decade will see industries transition to a Cloud-enabled world where work can be accomplished anywhere, anytime. This will especially be true of the accounting profession, according to Intuit, as such tools as Cloud-connected smartphones and tablets will enable firms to provide clients with an "accountant in their pocket" at all times. In the modern age, technology is constantly evolving and this has an effect on every profession, especially accounting. Processes and procedures are becoming less manual and more automated. Accounting begun being all written and having hard copies as the only backup. Systems are becoming more advanced and powerful which allows them to aggregate large amounts of data. As time went on, new software and hardware allow calculations to occur more quickly and allow backup to be more readily accessible. As well, with accounting constantly changing, the standards and regulation overseeing the profession were as well. As well, a lot of companies in the early 2000s when the technology bubble was building, companies such as Enron and WorldCom tried to take advantage of lax audit rules and committed extensive fraud. This constantly requires technology to change to allow for it to be in line with what is required, specifically in relation to audits and GAAP. In this digital age, technology adapts and improves...
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...Information Technology and Accounting Fraud History has shown the accounting network has come a long way from the days which included manual general ledgers to the present where electronic general ledgers are a necessity. In the electronic world we now live in, the accounting information system requires us to utilize computer systems and intranets, which transfer vital information at a much more rapid speed. Information systems used for accounting purposes is a function used by businesses internally. These highly sophisticated systems report financial data for users from entry-level staff, key decision makers, stakeholders, and investors. These systems provide owners of all businesses and management the supporting data required for making critical decisions, although these systems may encounter threats which can obstruct their overall effectiveness. Account information systems can become so complex for businesses they prove to be ineffective and inefficient for the everyday use in business operations. These high complexities may take place when business owners or management make efforts to construct an information system which gathers far more information that is needed, or use the system for reasons outside the scope of their original purpose. Businesses who lack the adequate technology or employees familiar with accounting systems may find this technology difficult to use. Management must ensure the accounting systems implemented within...
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...[1] ICPA, “Review and Resume”, Accounting Terminology Bulletin no. 1, (1953), par 9. [2] N. Conn, “Objectives of Financial Reporting by Business Enterprises”, Statement of Financial Accounting Concepts no. 1, (1978), par 9. [3] W. Ballada and S. Ballada, “Basic Accounting”, DomDane Publishing, (2011), pp. 20, 88-90. [4] Information Technology, http://en.wikipedia.org/wiki/Information_technology, (Accessed 2013). [5] M. Ghasemi, V. Shafeiepour, M. Aslani and E. Barvayeh, “The Impact of Information Technology (IT) on Modern Accounting”, Procedia - Social and Behavioral Sciences, vol. 28, (2011), pp. 112–116. [6] http://www.e-conomic.co.uk/accountingsystem/glossary/accounting-system, (Accessed 2013). [7] K. I. Dandago and A. S. Rufai, “Information Technology and Accounting Information System in the Nigerian Banking Industry”, Asian Economic and Financial Review, vol. 4, no. 5, (2013) June, pp.655-670. [8] J. Moscove, P. Sinkin and P. Bagranoff, “A Theory of Interdependent Demand for a Communication Service. Bell Journal of Economics, vol. 5, no.1, (1999), pp. 283-292. [9] J. Hall, Accounting Information System, (2008), pp. 11-28, ISBN-10: 0324560893, ISBN-13: 9780324560893. [10] S. Shanker, “How is Information Technology Used in Accounting?”, Chron Small Business Demand Media, (2013). [11] M. Amidu, et al., “E-Accounting Practices among Small and Medium Enterprises in Ghana”, Journal of Management Policy and Practice, vol. 12, no.4, (2011), p. 152. [12] Cost-Benefit...
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...Effects of Technology on Accounting Information Systems James King University of Phoenix: ACC/340 Accounting Information Systems I Instructor: Ray Dahmer June 27, 2011 Effects of Technology on Accounting Information Systems The information age and the resulting technological advances have made an impact on every functional area of the accounting industry including auditing, taxation, financial, and managerial accounting (Bagranoff, Simkin, & Norman, 2008). Information systems consist of data input and processing devices, applications, personnel, and procedures, all of which produce information that management uses to make crucial business decisions (Bagranoff, Simkin, & Norman, 2008). This paper contains a discussion of modern accounting information systems and the influence of those systems in the changing landscape of the accounting profession. New Technology and Its Effect on Business The introduction of modern information technology into the accounting profession has produced advances in the industry and in the design of accounting information systems. All but gone are the days of spiral bound ledgers and adding machines. Accounting applications running on computer systems with two-gigahertz processors and gigabytes worth of memory perform accounting tasks in modern organizations. The information generated by modern accounting information systems from the data gathered by the input terminals within the system, informs managers about the situation...
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...Accounting Information System ACT 564 Homework Problem 1.1 Information technology is continually changing the nature of accounting and the role of accountants. Write a two-page report describing what you think the nature of the accounting function and accounting information system in a large company will be like in the year 2020. When thinking about the future of accounting and the accounting function and accounting information system, it is hard to imagine what it will be like in the future. We have come so far in such a little time technology wise. The year 2020 isn’t that far off into the future if you actually think about it and so much is bound to change! Though as a side note, if I started thinking about the Mayan calendar and how they believe the world will end on December 21, 2012. If this is true, will there even be the year 2020 to look forward to? I can remember my cousin, who is an accountant, doing all her work on paper and in a book. She always stayed late to make sure she wouldn’t get behind on her work. Now ten years later ninety percent of her work is all on the computer. Not only does this save her time but it can also make things easier when automated. In the next eight years, I believe that ninety-eight percent will all be done on the computer. The only thing that will need to be hands on or on paper will be backup copies in case something happens to the computer database. I expect large companies will only need maybe two accountants...
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