The influence of Information Technology on Accounting

How Information Technology Influenced Accounting Profession

Accounting Information Technology studentThe accounting profession is part of the occupational fields that were changed from the roots with the  use of modern technology . The Basic principles and work are still exactly the same, but the methods for processing, distribution, transmission and data access are completely different.

Modern accounting information systems allow electronic processing of data which does not require specific accounting degree¬† for those that input the data, but require such knowledge and skills to set up the¬† information system in order to be able to organize the chart entries, document flow, data entry, and to link this data. The advantage of this approach is the speed of data processing, while the main disadvantage is “distancing the author” of his final product. In addition to this because of the lack of specific knowledge, It’s very common to have occurring problems¬† in being unable to¬† locate the critical point of the data input process.

The usage of information technology allows dislocation in accessing the information system of an enterprise, and as such is not so important to be physically present to be able to perform or control data entry. This resulting number of advantages such as the possibility of a dislocated control system, the user’s ability to enter their own data through a central server, the detachment of input and data processing location and ¬†in this regard the possibility of synergistic acting of IT, auditors, accountants, consultants, and administrator. The input, processing and the usage of this data is limited only by imagination and knowledge of such a linked system.

Spreadsheets such as Excel have become an indispensable tool for control, analysis and graphical display of various data that is entered in the classic accounting so-called grids. Also, once created tables with formulas become on demand and always available tool for repetitive analysis, and also an ideal tool for comparing different periods, calculation of the index, average and other financial indicators.

The application of new technology, knowledge and skills in accounting therefore requires a very different staff profile of what was till recently very common. It is essential to have knowledge and skills in IT, accounting, organization, leadership, teamwork, ability to make quick decisions. Teams of such people are a guarantee of effective accounting management within the micro enterprises, while companies whose main business is providing services in the areas of accounting, auditing, tax and business consulting are the basis for positioning in the market in terms of quality, and quick and efficient providing the necessary information to customers and rise above common understanding of the need for such services.

In this sense, the main goal of accounting college degree classes is to create new professional standards for quality service provision, in order to give the accountancy profession a profile of a highly sophisticated, knowledge-based enterprise business function.