Published Date: July 5, 2020 . Last Updated November 25, 2022
Accounting and Technology
Each accountant realizes that bookkeeping is the language of business. The language of accounting and technology has experienced many progressions all throughout the ages. Yet, through all the progressions bookkeeping technology has consistently had an impact on making the accountant’s activity only somewhat simpler. As our insight into technology expanded, so has the accountant’s capacity to dissect statistical values. Technology headways have upgraded the accountant’s capacity to decipher information productively and adequately. He/she currently can decipher the language of business without any difficulty and the accountant has become an enterprise’s most confided in business counsel.
Changes in Accounting and Technology through the Ages
We can begin the path back in the first place with the creation of the Abacus device, used to monitor counts in business. Even though we didn’t call it technology, we can return hundreds of years with a few endeavors to fabricate calculators to assist an accountant with scientific arrangements. After the primary working calculator, came the development of the adding machine for data precision. As technology progressed so did the speed and capability of the accountant’s activity. By the end of the twentieth century, with programs like Microsoft Excel, accountants can use electronic spreadsheets for their work rather than relying on tedious machines and minimizing the chance for error. Be that as it may, even with calculators and number crunchers the accountant despite everything needed to monitor the organizations’ capacities with paper section. The way toward distinguishing, estimating, and conveying financial data was reported as paper records, sections of numbers, and written by hand articulations. An accountant must be an efficient, thorough individual.
E-Business, the Intranet, and the Extranet
The present bookkeeping experts who comprehend the significance of the Internet will utilize the Internet for e-business. They utilize the Internet to execute significant business forms in the endeavor. Electronic business accounting software permits the bookkeeping firm to facilitate exercises for inward administration and joins the customers’ associations with the utilization of advanced systems. Endeavor applications can be utilized on a little inward system called the Intranet. The Intranet can convey data to representatives, for example, corporate approaches, and projects. It fixates on an entryway which is a solitary purpose of access. Data can emerge out of a few unique frameworks utilizing a Web interface. They can highlight such things as email, inside reports, for example, the Code of Ethics, and a pursuit instrument. It is a decent method for correspondence inside an association. Bookkeeping experts can likewise impart outside the association with Web technology utilizing the production of an Extranet. They use CPA software online. This permits the customers to have constrained access, connecting to a bit of the bookkeeping company’s Intranet to import and fare documents to and from. Connecting electronically expands effectiveness and eliminates travel costs eventually lessening operational expenses.
6 Ways Technology has Transformed the Accounting Industry
To go above and beyond, Cloud computing is turning out to be well known today. It is cloud distributed computing because the name speaks to the cloud image utilized in-stream outlines, speaking to the Internet. It is a help that is being given over the web to forever store information and use business applications over a remote server. Programming as-an administration (SaaS) is an electronic help. The information is forever put away in enormous server farms shared by numerous different clients. The accountant would not need to buy anything. He/she would pay a month-to-month membership so he/she would just get compensation for what is required. Because the accountant ought to know about the security issues included when settling on a choice to utilize this technology. Cloud specialist organizations are obliged to give a sheltered situation to store the association’s touchy data as accountants are obliged to comprehend the dangers.
Artificial Intelligence & Robotics
Artificial intelligence and robotics have allowed accountants to perform complex tasks with greater accuracy and precision, in less time and reduced cost, repeatedly. This is one of the newest technologies that enable the accountant to take on a more critical thinking role. Artificial intelligence and robotics can effectively manage the collection, transformation, and visualization of data that even the most skilled accountants might not be able to do. However, along with technology, the emotional intelligence, integrity, and communication skills of an accountant required to make effective decisions, are still necessary for the evolution of this business. Artificial intelligence has already begun to help companies in producing higher quality outputs and become increasingly efficient. It has also helped these businesses seem appealing to the younger generations that seek innovation and unique creativity.
Innovations in Tax Software
Accounting technologies have greatly benefited from the Tax software that increases accuracy by reducing the margin for error, which is necessary to avoid tax penalties and make accounting more efficient. The progress in accounting also helps in streamlining audits by making them more effective.
Mobile devices are an essential tool for accountants that helps them access data and stay connected with their clients throughout the day. The mobile age of accounting has been launched by companies like Xero. Accounting firms can manage their businesses through this app while being on the move. Apps like these can manage the expense claims, invoices, receipts, and even reconciliation of firms. Mobile accounting can help solve a number of accountants’ problems and contribute to effective dealing in businesses. It can provide financial solutions to accountants that could make lives easier.
Social media is an extremely important tool in helping firms engage with current and future clients, and very useful with the expansion of their reach. It is one of the most effective tools in today’s technology-driven world that will continue to evolve with the passage of time providing accountants with a solid marketing platform and valuable sales that can help them connect with existing and potential clients in a very effective manner. Integration of the newest age technologies like social media into traditional accounting can boost the brand image and sales tremendously. If business plans were to include these accounting technologies, their long-term marketing strategies and development efforts would greatly benefit from it.
Investigation of corporate fraud has revolutionized the accounting business. Regulations are being developed that have opened up new areas for accountants including forensic accounting. Expert knowledge in accounting and finance of a CPA accountant, coupled with investigative skills, makes it a perfect match for the investigation of criminal financial activities. Forensic accountants are to determine whether the business activities in areas of money laundering, statement and security frauds, embezzlement, bankruptcies, insurance claims, and contract disputes are illegal or not. These accountants work closely with lawyers and law enforcement agencies, as well as acting as expert witnesses during trials. Criminal activities like identity theft, hacking, piracy, the spread of computer viruses, phishing, e-commerce scams, and stealing of computer files, have been on the rise with the advancement of technology. Forensic accountants are highly in demand with the need to stop cyber fraud.
Progressions of Information Technology
Accountants were pushed towards getting new abilities because of the headways that data technology has made on the bookkeeping business. Accountants now introduced the CPA client portal. For the client portal for accountants, they presently must have a significant level of PC and specialized aptitudes. These aptitudes have become some portion of the information, and capacities of the bookkeeping experts. In its report, the American Institute of Certified Public Accounts (AICPA) urban areas, “The information, aptitudes, and capacities vital for the passage level accountant presently incorporate the application and joining of data technology into the bookkeeping process, just as financial and administrative bookkeeping standards”. From this examination, not exclusively does an accountant need to have a wide scope of bookkeeping information and a solid capacity to apply bookkeeping standards, government guidelines, and decipher tax laws; they should likewise have solid abilities in data technology, to have the option to consolidate bookkeeping with data frameworks. These accountants will be in more noteworthy interest by the calling.
Enterprise Resource Planning (ERP) Systems
This is one of the strategic software applications for first-century accounting and technology. This system is used for the integration of different departments from the same organization into one comprehensive system. Through this system, data can be made available to all the departments in control and support activities and transactions between them in a more effective manner. A common central database holds all this information and is shared through functional areas of human resources, accounting, and finance, sales, and marketing, as well as production. ERP effectively amplifies the business performance since management can visualize the whole performance of the business at any given point in the organization, and also help make effective business decisions.
Supply Chain Management (SCM) Systems
SCM is another strategic software application that helps in the management of businesses in their relationship with suppliers. Supply chain management is defined as, “Information systems that automate the flow of information between a firm and its suppliers in order to optimize the planning, sourcing, manufacturing, and delivery of products and services”. The information flows between organizations, thus making it an inter-organizational system. SCM makes sure that the right product is at the right price and time, at the right place, and in the right condition. SCM requires proper planning, managing, sourcing, and having financial expertise in product logistics. It is an important area in all organizations requiring the CPA to monitor the supply chain in its entirety, going beyond the organization. Staff help is also required in the monitoring and controlling of the financial aspects.
Informational technology is an important part of a successful business organization and needs to be managed by an expert in IT, who needs to see if the IT supports the organization’s objectives and its strategies. The IT system of any organization must be financially responsible for the organization, and must always have a backup plan in case of failure, that helps them stay ahead of their competition. They should also keep in mind that they need to comply with effective controls and government regulations. Executive managers of all the organization’s departments must maintain a direct alliance with the IT managers in order to showcase effective business planning and successful decision-making in reference to the business model as well as the IT department.
Accounting technologies have been seeing rapid growth and advancement in recent times, which the accountants need to stay updated on in order to remain relevant in the industry. The language of future accounting professionals requires staying in touch with the accounting and technology trends, optimizing and adapting the software in congruence with the needs of the firm, and being accepting of all the new updates and technologies. The accounting industry offers tremendous growth and potential for future generations, and with the advent of various new and diverse possibilities, it also offers greater career stability for professional accountants.