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 profitability. While this new form of conducting business has been beneficial for an organization, it creates new challenges for the accounting field.
Technology and Changes in Accounting
Over the years technology has continued to provide valuable tools not only to a business, but to individuals who manage the financial aspect of the company. The introduction of the Microsoft Excel program allowed accountants to utilize an electronic spread sheet, eliminating pencil and paper entries as well as minimizing errors. As time advanced software programs such as Quick Books, Microsoft Money, and industry specific programs emerged. For smaller companies it allowed the business owner to have all financial information related to their company at their fingertips. This also eliminated the need to hire an outside firm to gather and record the operating costs each month. The owner now had the opportunity to review vendor, customer, and bank accounts at the click of a mouse (Ingram, D. n.d.).
Accountants working in the corporate field also benefit from new advancements in technology. From the information entered into the computers data base, the accountant can retrieve information necessary for various individuals and departments within the organization immediately. Through the intranet, which is the internal...