...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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...The Effects of Technology on the Accounting Profession Paper Amy Everett ACC/210 December 7, 2015 The Effects of Technology on the Accounting Profession Paper The accounting profession has seen many changes with the advancements of technology and has given accountants with various tools. Examples of these tools include computer-integrated manufacturing, image processing, communications technology, the Internet, and software systems. These examples are a few of the many tools provided by technology and whose purpose is to provide more detailed and accurate information in a timely manner. Advancing technology allows companies to maintain more accurate financial records which are available at the touch of a key. While the advancements have benefited companies everywhere, it also creates new challenges for the accounting profession. Corporate Tax Network (2013) believes that the concept of the spreadsheet has allowed accountants to quickly make calculations with formulas, perform forecasting analysis, and create visualizations that show what the client’s finances and tax requirements from the past, present, and into the future look like. Computers, scanners, faxes, and printers have had a positive impact on the accounting profession. The software that is available makes efficient work of the figures that are reported and provides more accuracy as the calculations are done automatically. With the use of accounting software, the accountant can interpret the financial data...
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...The Effects of Technology on the Accounting Profession Paper Over the years people have switched from filing tax in papers to filing tax online in matter of minutes. This has provided individual with software that will provide him or her with full access to filing his or her tax online. As people continue to newer year each individual will see many changes in the Information system field and these new technologies will makes everything easy for us. The following essay will discuss the variety of new technologies and their effects on accounting processes, ways technologies have changed the way accounting is performed at, and explain corporate accounting, accounting professional services, and audit firms. Over the years we have seen technology change the way each individual does business. Each year companies are introducing new software that allows business owners and accounting firms to create balance sheet, payroll, and bookkeeping in matter of minutes. Business has seen account software like QuickBooks, turbo tax and peach tree to makes the necessary credit and debit for business. One of the new technologies that an individual is introduced to in accounting firms are Intuits quick book and cloud system. Cloud system is a web hosting application located off site. The advantage of cloud system is that we never have to install any account software in the firm’s computer; instead companies install software and store data in a server that is in a different locating. These...
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...Procedia - Social and Behavioral Sciences 152 (2014) 852 – 855 ERPA 2014 Role of technology in accounting and e-accounting Aysel Güneya* a Bilecik Şeyh Edebali UniversityApplied Sciences Faculty, Bilecik, 11210, Turkey Abstract Technological developments changed methods for carrying out tasks within the scope of accounting activities and transactions related to accounting was started to being carried out through electronic media. Growth and development growing rapidly in information technologies day by day have brought digital revolution in economic, social and cultural fields. Our era is information era and when we acknowledge that accounting is an information system, the way and processes of transacting businesses of enterprises have changed with usage of information technologies in enterprises and this influenced accounting closely. Necessity of keeping up with changing conditions of accounting led educators and practitioners to new pursuits. Enabling inclusion of information era and technologic factors in education by benefiting from digital resources as well as theoretical information in accounting education provided in universities and generating an interactive environment to keep student wakeful and preferring educational model in which information technologies are used is necessary. In order to achieve that, students should be provided to take target-driven accounting courses and an educational order should be generated in which students can evaluate...
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...ACC 700 How Technology Will Change the Accounting Profession Charles Duell, the director of the U.S Patent Office at the beginning of the twentieth century, prophesied that "everything that can be invented has been invented." Looking back, one can only laugh at the irony of this statement and the sheer amount that has actually changed since then. However, amidst the laughter, a question is raised: is it possible that today’s businesses believe what Duells said, that there is nothing more to come? Today, companies have access to some of the most groundbreaking technology, but are they truly taking advantage of it? One field that has changed dramatically over the past few years is the accounting profession, especially Certified Public Accountants (CPAs). Are CPAs staying on top of the latest technology that can greatly assist them in doing their job? For a better understanding of how technology directly affects the CPA profession one can simply look at the changes that have occurred over the past few decades, what a current office should be using, along with checking out the technological advances and how they will affect the career of CPAs in the next ten to twenty years. Not only is the accounting world changing, but the courses that an individual must study on the road to becoming a CPA, are also rapidly changing. The objective is to better prepare new graduates with a better understanding of the technology that will soon be such an integrated part of their lives. Courses...
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...4. “The impact of innovations and developments in information and communication technology on corporate accounting information systems has removed the need for excessive internal control.” Discuss the truthfulness or falsity of this statement Information and communication technology has been a major factor of efficient accounting system and great organizational performance recently. In order to maximize the benefits of information technology systems, the appropriate implementation and adoption procedures have to be used, or else, there is little or no impact of these technologies. In recent times, the usage of computers and other advanced technology have been relevant in most practices including accounting. Prior to this, accountants were...
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... A responsibility can now access data in multiple organizations R12.1 was released in April 2009 How does this impact custom Responsibilities How will all these new features be “discovered” Quicker data entry for shared services organizations The user interface to the Oracle Diagnostics scripts was rewritten in OA Framework in R12.0.6 12.0 focused on Financials 12.1 focused on everything else including HR Utilizes role-based access control requiring role grants from the user management responsibility Setup reports in diagnostics can help you find missing setups 3 FINANCIALS - GL 4 Financials - GL Legal Entities have significant functionality in R12 Should reflect legal corporate structure Utilized by Accounting Functions, E-Business Tax, Intercompany, and Bank Account Balancing segment is associated with legal entity – not ledger Bank account is owned by legal entity Align your Ledger structure with your business plan Operating units are associated with ledgers in R12 – not LE Position your business to accommodate growth Design ledgers to satisfy non-GAAP accounting requirements Secondary Ledgers can be utilized for statutory, management, and/or consolidation reporting Mapping from Primary to Secondary Ledger(s) is defined in General Ledger and is assigned in the Accounting Setup Manager 5 Financials - GL Consider...
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...Accountants Important to the Accounting Industry, and why their role is Important to Business, Industry, and Society? Virginia Commonwealth University Writing and Rhetoric April 15, 2011 Why are Certified Public Accountants Important to the Accounting Industry, and why their role is Important to Business, Industry, and Society? CPAs became prominent after the 1800s when America started into the industrial era. They mainly did the basic bookkeeping for businesses at that time. As the industrial age grew and the government started to impose taxes, CPAs became more important to businesses as they now had to handle the filing of taxes for businesses. Although many people don’t see how important CPAs are to business, industry, and the economy, as well as, society. With the many changes over the centuries that government and CPA societies have put on CPAs, there have been some big changes in educational requirements, as well as governmental regulations. But in today’s society ethics has become the biggest problem that CPAs have to deal with and yet have more control over in the economy, and especially in business and industry. History has shown just how business and industry has needed CPAs, from controlling payroll and taxes, auditing accounting journals at the local mom-and-pop stores, to auditing financial papers of big corporations in order to let the investors at banks and Wall Street have some sort of an idea of how sound a Corporation is...
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...Harnischfeger Corp. Case Harnischfeger Corp. is a large New York Stock Exchange company but with old-line, low-tech. This family-based old midwest company had a history for almost 100 years. When the recession hit the financial world during 1980-1981, Harnischfeger could hardly maintain its solid financial performance. Finally, it violated the bond covenants that significantly cause financial distress. In the year of 1984, a number of accounting policy changes were made by the new manager, Peter Roberts. The goals of our team are to figure out whether the company can truly turned around with respect to the Peter Roberts’ decisions. There were several managerial actions that affecting either accounting estimates or accounting policy in the year of 1984. First of all, Harnischfeger’s allowance for doubtful accounts as a percentage of gross accounts receivable dropped from 9.1% in 1983 to 6.3% in 1984 according to the Note 8. If we assume that the company continues to utilize its allowance for doubtful accounts at 9.1% of its gross accounts receivable at the end of 1984, its bad debt expense in 1984 would be $2.6 million more than expenses reported on the incomes statement. Because of the complexity of the components that affects the bad debt expense, it is possible that the management team could manipulate the balance. Then, in 1984, Harnischfeger began to sell products purchased from Kobe Steel in the market. However, a close inspection on the the financial statement reveals...
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...Information Technology This report provides an analysis and evaluation of information technology tools available to help support our business. The purpose of this plan is to set the foundation for our information technology department regrading marketing, accounting, sales, and quality assurance. This report will also cover and evaluate technologies that have emerged in the last five years and consider there potential impact on the business and also determine whether or not these technologies will be adopted. Communication Communication is one of the key elements when conducting business. This is because in order to run a successful business one must be in constant contact with customers and service providers. Technology such as VoIP (voice of internet protocol) makes this possible, VoIP may be the single most important thing that should be integrated into our business this technology allows for long distance calls, the sending and receiving of information, documents, capable of happening on a global level and is the most efficient way to conduct business transactions and communications. Most importantly however it is cheap, between the efficiency and finical savings this technology allows it is my recommendation that this technology should be adopted. One of the biggest advantages of integrating new technology into our business is the finical savings it affords us. This will allows tasks that once took sizable amounts of time and money to be completed with a touch of...
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...How Technology is Changing Accounting Accounting 525 Melissa Holland-Mitchell December 20, 2014 Professor Jones K. Kasonso Computer technology is always changing, so fast that many companies will simply update their current computer system continuously. Technology and the computer are a part of our lives; it helps managers make decisions to improve business operations, allows for faster transfer of information, and is simply a basic necessity to do business in many professions including accounting. There are technological trends that will have a tremendous impact on the accounting profession: cyber security, cloud, mobile devices, and big data. The Cloud and mobile technology available today is transforming the job of the tax and accounting professionals (Proformative.com, 2012). Where technology used to be behind the scenes at the office, its use is increasingly extended beyond internal use and out to the client. Mobile accountants work remotely between 5.8 to 8.6 hours per week. By 2015 the number of mobile workers is in North America and Latin America is to exceed 212 million (Proformative.com, 2012). More accountants are using smart phones for work; mobile access allows firms to connect with clients outside of regular business hours, and other locations. Smartphone’s are quickly being adopted by the accounting professional, many still think of the Smartphone as just a mobile phone with additional features such as texting and music player. However with the...
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...categories are business environment, strategy, and organizational architecture. Business environment of Andersen includes technology that was used effectively; structure of its markets, regulations which helped Andersen to grow along with its reputation. The second category is strategy which includes Andersen’s primary goals, choice of business, and services. Finally, the last category is organizational architecture which explains how authority is distributed among Andersen’s employees, and how rewards determined. BUSINESS ENVIRONMENT TECHNOLOGY | MARKETS | REGULATIONS | Company started using computers for bookkeeping.Company developed the largest technology practice. | Arthur Andersen was well respected, reputable auditing company for many customers.Early 1950s Andersen entered in computer consulting business. | The federal law in 1930’s which required companies to provide their financial statements to an independent auditor each year helped Andersen’s grow. | STRATEGY Quality audits were valued more than higher short-run firm profits.“Four cornerstones” of good service, quality audits, well managed staff and profits.Auditors were rewarded and promoted for making sound audit decisions. Mid-level partner was making average $160,000 in today’s currency.In 1990s AA formulated a new strategy that focused on generating new business and cutting costs. It included how partners should empathize with clients. | ORANIZATIONAL ARCHITECTURE AA’s both business (auditing and consulting)...
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...A SHORT HISTORY OF ACCOUNTING AND BUSINESS By Gary Giroux September 1999 Preface Overview: Accounting toward the 21st century: Where are we now? How did we get here? 1. From the Ancient World to Pacioli The First Cities Trade Tokens: The First Accounting The Sumerians Complex Tokens and Clay Tablets Cuneiform Writing and Beyond Money, Banking and Credit The Dark Ages and the Rise of the Italian Merchants Luca Pacioli: The Father of Accounting 2. Britain and the Industrial Revolution Prior to 1750 Ironbridge Textiles The Steam Engine Wedgwood and the Importance of Cost Accounting Early Cost Accounting Transportation Development of the Accounting Profession 3. American Big Business and Cost Accounting Early Developments in Manufacturing and Accounting Rockefeller Morgan and Carnegie Cost Accounting in the Era of Big Business Alternative Systems in Asia and Europe Relevance Lost: The Critique of Johnson and Kaplan The American Response 4. Financial Accounting and the Structure of Accounting Regulation The Great Crash and Government Response The New Role of the Accounting Profession The Financial Accounting Standards Board Earnings Management and Economic Consequences Accounting Principles and the Conceptual Framework 5. Auditing Auditing in the U. S. The Big...
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...The current issue and full text archive of this journal is available at www.emeraldinsight.com/0268-6902.htm MAJ 21,5 The impact of international financial reporting standards: does size matter? John Goodwin School of Accounting and Law, RMIT University, Melbourne, Australia, and 460 Kamran Ahmed School of Business, La Trobe University, Bundoora, Australia Abstract Purpose – This study seeks to examine the impact of Australian equivalents to international financial reporting standards (A-IFRS) on the accounts of small-, medium- and large-sized firms. Design/methodology/approach – For 135 listed Australian entities, the half-yearly accounts ended 30 June 2005 are examined to identify the effects of A-IFRS. Data are gathered on the change in major balance sheet and income statement elements, the major reconciling items and earnings variability. Findings – Findings show that more than half of small firms have no change in net income or equity from A-IFRS, and that there is an increase in the number of adjustments to net income and equity with firm size. The study also finds that A-IFRS has increased net income for small- and medium-sized firms. Equity has increased (decreased) under A-IFRS for small (large) firms. Small firms experience higher earnings variability than medium-sized or large firms under A-IFRS. Research limitations/implications – The sample is limited to 31 December reporting date firms and not all A-IFRS must be complied with when firms restate their comparatives...
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...managerial versus financial accounting, the effects of technology on business, and the effects of globalization on business. All team members felt they gained a lot from the readings and teaching this week, despite having some areas that caused us to struggle. There were many lessons that we will be able to apply to our places of employment in the future. Benchmarking Analyses Last week we focused on benchmarking. "Benchmarking compares and organizations practices, processes, and products against the world's best," (Nickels, McHugh, & McHugh, 2010). Benchmarking can be used to gain a competitive advantage by allowing an organization to compare existing performance against their competitors to identify areas for improvement. If your competitor out performs you in an area, you evaluate that process and see how you can improve to become better than your competitor. For example, "Target may compare itself to Wal-Mart to see what, if anything, Wal-Mart does better. Target will then try to improve its practices or processes to become even better than Wal-Mart" (Nickels & McHugh, 2012). So if Wal-Mart were to be better at shipping items than Target, Target would evaluate that process to see how they could be better at shipping than Wal-Mart. In conducting a benchmark analysis this week between Sam’s Club and Costco, it is observed that Sam’s Club has a very evolved supply chain management system, making use of technology such as radio frequency identification...
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