Technology In Accounting

With new threats introduced in the accounting environment, modern organizations now must work hard to safeguard information that was not at such a risk prior to new technology. Outside threats are a real danger to accounting functions in modern organizations, but other dangers to success lie from within.

Vasarhelyi. 2009). With these challenges to accountants, they will have to change their current methods of calculating, writing, storing, and talking to the client from

For as long as businesses have existed, so has accounting. With time, it has become more complicated and detailed, but it is still a process of keeping financial accounts in order. Through accounting, or financial reporting, a system is set up to keep track of, maintain and audit the financial proceedings. Because accounting and financial reporting of a business is so important for its accuracy and in general, a lot of ethical, technological and legal concerns are involved. In this paper, we will look identify and explore the concerns of each of these.

In the modern business today, there is no more manual accounting. Instead a lot of companies and businesses all over the world are trying to use and adapt by having an accounting system that is computerised, less hassle and fast processing.

All recorded data related to accounting can be managed under the accounting information system database. The confidential information in AIS must be available and protected with authorizations only each division should have access to. Each user has a personal identification and authentic password for authorization to the system and departmental data access. Some AIS also has security resets to users so their access isn’t compromised. This eliminates risk associated with internal data abuse and unauthorized department access. AIS have virus, disaster recovery and system updates. A virus will be a disaster for AIS. Whether internal or external, a threat can destroy a system data. Information security has keep accounting systems protected from

Nowadays, the business world is changing at a faster and faster pace. The reasons for this faster pace are "globalization", information technology, and the faster pace in technological change. The role of IT has shifted over the last decades to become an important part of how firms manage and control their resources. As the result, IT plays a critical role in accounting. IT is the platform for accounting data and it allows certain sophisticated queries to be performed though, IT clearly plays an important role in accounting functions. The impact of IT in firms is broad and manifested in the most varied ways in the integrated systems, which includes ERP systems, internet, intranet, and so on, walk hand in hand with the firm know-how. These technologies have altered the way firms work and their accounting functions.

Accounting records are ‘‘records of financial transactions, or of events expressed in monetary terms, made for the purposes of accounting’’ (Accounting Dictionary 2014). Although such records are historically physical, they are now almost exclusively digitized. For example, in 2000, about 25 percent of all stored information was digital, whereas currently more than 98 percent of this information is electronic (Cukier and Mayer-Scho¨nberger 2013). Data streams fueled much of this shift because automatic sensor devices and machine-to-machine communications continuously generate data (Warren, Moffitt, & Byrnes, 2015).

Excel is a standard system used nowadays in many companies for accounting. The weakness of the program is that users can modify or erase formulas by accident, and not be detected. Perhaps, the program had errors in the results using statistical functions. Moreover, Microsoft was notified the issues from many years, and they did not launch an update to fix the problems. Many employees will try to practice fraudulent activities, especially in a company with poor security and control system. There are few examples written of that fraudulent activity, which will help the reader to understand the situations. Also, managers found that the implementation of accounting complexity for financial reports, which will assist them to hide any possible

18) The process of creating value for customers is the result of nine activities that form a

Information systems changed forever the way accounting tasks are processed. The days of green paper pads are gone, and instead businesses have a centralized place where all accounting transactions are entered and saved. No more looking for paper

Nowadays, accounting and computers are interrelated with each other. Almost every business or people depend on computer for their day to day work, for many of us it has also become a part of our life. But on those days when computer were not in used for doing the business transaction or recording the financial notes, it was really hard to track assets and liabilities and to find out the actual profit and loss.

With a computer, you can receive a balance sheet, income statement or other accounting reports at the touch of a button. Now I am going to evaluate some of the disadvantages of using a computerised accounting system. Loss of Data When you use a computer, it is possible that data can be lost because of hardware or software damage this can be a huge factor for a business regardless of its size if such damage occurs the business will have to spend money and time redoing the accounts and in the worst case scenario can lose customers due to misplacing or losing their data. Since the computer

Accounting is an old profession which has evolved significantly over time from manual bookkeeping to complex accounting software (Caulfield, 2016). Accounting is mostly confused with just data entry and reporting for which accounting software are available that can perform the function much quicker and efficiently. Now a few questions do pop up in our minds as to what will be the future of accountants with such technological advancements? How will accountants adapt themselves with changing needs?

Accounting has existed since the ancient civilisation, from three thousand years ago in Egypt all the way to the modern world today. It always has been applied and done enormously. As growing in global business trade, accounting has come to a stage where it cannot be managed by single owners. Besides that, when a business is run by more than one person, a system for documenting transactions is needed to monitor the cash. In the mid of 1980, IBM launched the PC. The consequent is rapid evolution of paperless monitor

Accounting information system is increasingly important to contemporary organisations, can help to increase the flexibility, keep the necessary accounting records, save money and time on accounting record functions. Xero is an accounting report software development company, it established to provide beautiful accounting software. Drays Co is a company, sells medical equipment, which desires to adopt Xero accounting software. However Rose, who is the accountant of Dray Co, has difficulties to adopt Xero accounting systems. There are three specific issues are: risks of the cloud, systems development life cycle and outwardly organised systems. These issues will be discussed separately in the following content.