Over the decades, RFID has grown in popularity among business ventures and other industries that deal with large amounts of data, items, and personnel. RFID denotes the use of radio waves to identify information contained in tags and chips and channeling the information into information technology systems (Lin & Brown, 2008). Unlike previous forms of identification technologies, radio waves can be intercepted by RFID systems away from the line of sight. In this regard, this paper addresses the various benefits that RFID has provided to accounting systems and connected information systems.
First, RFID is a basic inventory tracking and identification tool that saves both time and costs (Davis & Luehlfing, 2004). Previous methodologies of tracking inventory were highly uncertain due to the strenuous work involved to maintain inventory. Additionally, the flow of products in the organizational supply chains can also be monitored effectively using RFID utilities (Lin & Brown, 2008). In this regard, the efficiency of accounting procedures is improved through the use of RFID. Moreover, the automatic data reception by RFID systems enhances the ability of accountants to maintain timely and accurate data regarding business undertakings (Davis & Luehlfing, 2004). Other useful characteristics of RFID include the ability to track assets and plants of a business enterprise. The tracking capability aids accountants in preparing accurate books of accounts.
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Nevertheless, several security issues arise from the use of RFID systems. For example, inventory and sales systems are connected to consumer data, which include essential credit card specifics that could be compromised. Besides, it is challenging to reduce the tendencies of malicious parties to manipulate data produced through the RFID systems (Davis & Luehlfing, 2004). Compromised data affects the essential accounting procedures thus resulting in misrepresentation of data. Other issues prevalent in the RFID systems are that data can be easily intercepted through eavesdropping techniques. In this regard, the use of RFID systems requires a prudent approach to the security of the systems.
References
Davis, H. E., & Luehlfing, M. S. (2004). Radio Frequency Identification: The Wave of the Future. Journal of Accountancy , 198(5), 43–49.
Lin, P. P., & Brown, K. F. (2008). RFID Deployment. CPA Journal , 78(8), 68–71.
