In most of the accounting offices, information technology exists through the introduction of computers and other equipment. Importantly, technology is an essential part of most of the accounting office, but it is often taken for granted. Some factors of technology have led to a significant change in the information system.
1. Speed
In most of the information technology, speed has been a major factor. The way in which multiple technologies are utilized could result in fast and accurate results in the financial processes (Moffitt et al., 2016). Notably, most of the organizations ensure that the purchased equipment can deliver the best performance. Most technologies used in accounting work together with other systems of backup and proper hardware as well.
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2. Accuracy
Most of the accounting work is quite precise requiring accuracy in its documentation and reporting as well. Due to the development of technology, most of the accounting jobs have fewer errors since calculations are often conducted using computer software (Ceran, Güngör, & Konya, 2016). As opposed to estimates aided by a computer, the manual count could contain multiple errors. Thus, this shows that technology in accounting is critical in the reduction of mistakes.
3. Flexibility
Technology is often flexible, which is an essential characteristic in the counting departments. A flexible technology enables a system to adapt to the various business practices and the changes made as well. Besides that, it is critical for the software used in accounting departments to be continually updated for it to deliver new processes such as the processing of credit cards and the online method of sending invoices made. A flexible technology is this effective in ensuring that any desired change can be carried out by a particular system.
4. Cloud
The increased technology has enabled the offsite method of web hosting as the latest trend in most of the accounting departments. The program does not require one to install a program on several computers but instead, a person can acquire information from a server computer using the internet. The process is often referred to as cloud working (Murthy, 2016). Most of the accounting departments could save the money required for installing a particular hardware or software by signing into a cloud provider hence the need for purchasing a hard drive is reduced substantially. Another advantage of this is the fact that one can access information regardless of the place they are in. Thus, this shows that one needs not to visit the offices regularly.
5. Considerations
Some of the factors that should be taken into account in a digitalized accounting system are the need to deal with the problems that may arise due to electricity issues. Importantly, information technology may not be perfect. For instance, information that is not saved could be lost in the case of loss of power (Tan, 2016). In addition to that, connection problems could have a significant effect on the computations carried out in an accounting department. Thus, this shows that internet malfunctions and the availability of computer viruses are an expected problem while dealing with technology in the accounting departments.
In conclusion, this paper focuses on the use of technology in the accounting departments. Some of the results would be the fact that it would lead to the production of results in a fast and accurate manner as opposed to the manual system. Moreover, due to the flexible nature of technology, most accounting departments can use the available technology to perform multiple functions hence reducing costs incurred in purchasing some items to complete a different task. Further, the cloud nature of computer could allow accountants to access any required information from anywhere in the world while using the internet. Lastly, some considerations have been discussed that should be dealt with such as electricity problems, computer viruses, and the internet malfunctions as well.
References
Ceran, M. B., Güngör, S., & Konya, S. (2016). The Role Of Accounting Information Systems In Preventing The Financial Crises Experienced In Businesses. Economics, Management & Financial Markets , 11 (1), 294-302.
Moffitt, K. C., Richardson, V. J., Snow, N. M., Weisner, M. M., & Wood, D. A. (2016). Perspectives on Past and Future AIS Research as the Journal of Information Systems Turns Thirty. Journal Of Information Systems , 30 (3), 157-171. doi:10.2308/isys-51495
Murthy, U. S. (2016). Researching at the Intersection of Accounting and Information Technology: A Call for Action. Journal Of Information Systems , 30 (2), 159-167. doi:10.2308/isys-51413
Tan, Ö. F. (2016). Impact Of Accounting Information Systems On Internal Auditors In Turkey. Journal Of Marmara University Social Sciences Institute / Öneri , 12 (46), 245-260. doi:10.14783/od.v12i46.1000010013
