The Effects of Technology on the Accounting Profession

1065 Words Aug 21st, 2013 5 Pages
The Effects of Technology on the Accounting Profession
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The Effects of Technology on the Accounting Profession
Advancements in technology have allowed companies, small and large, to keep accurate financial records and eliminate paper entries. Technology has also allowed individuals in the accounting field the ability to interpret the financial information efficiently and effectively. With the introduction of the internet, a company now has the option to expand their business beyond a specific geographic area, and seek new opportunities for expansion around the globe. The introductions of new software programs, which can be designed to meet the specific needs of an industry, assist with the internal operations and
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Through the intranet, which is the internal software, CEO’s have access to the company’s financial health, sales-personnel can access client and vendor information, and managers can determine operating costs within their departments. This new technology also allows an accountant to forecast future financial information, create valuable graphs or charts, and analyze problems or opportunities for the organization.
New Technology and the Effect on Accounting Processes New advancements in technology are constantly being introduced for business and personal use. This can increase productivity within the business, but also create challenges for the accountant. One program that larger companies have incorporated into their operation is the Enterprise resource planning system. This software program integrates information from different departments within the organization. All information is shared through a common central database and is used by finance, human resource, sales, marketing, and production. This provides each department with information to assist them in decisions crucial to their role with the company. Cloud computing is a service which is offered over the internet and allows a company to permanently store data over a remote server. This service is usually billed at a monthly charge and saves the company space on their hard drive. There are data mining tools and web based alert tools that can be used to alert