THE IMPACT OF TECHNOLOGICAL DEVELOPMENTS ON ACCOUNTING SYSTEMS

Adrian L. Ngo

Accounting is a system that a company uses to assess its financial performance by recording, classifying, and summarizing all the transactions in a manner that adheres to certain accepted standard formats. On the standpoint of accounting, it provides the past and present condition of the industry and foresees its future performances. Technological developments made considerable changes which have affected professional services in the different accounting industries. With the use of information technology (IT), accounting have transformed tremendously by its rapid change in its working environment. Once in a slow- paced to its manual labor, through the advances of IT, automation of audit tasks and use of specialized audit software has substituted IT for labor and changed the structure of audit teams.

Technologies have made our lives a lot easier. Its integrations and advancements have widened its use and created other systems such as Excel, QuickBooks, Zero, to name a few. It had help industries to transform and conduct business effortless leading to its increasing demand of its service. Accounting industries have taken this advantage which causes them a huge transformation on its working environment. Through the use of software packages and computerized systems, accounting operations and production processes have been improved. IT has shortened the time required for preparing and presenting financial information with efficiency and accuracy of data. It also helps in tracking and recording financial transactions which allows companies to create individual reports quickly and easily for management decision making. And also improved the functionality of accounting departments by increasing the timeliness of accounting information wherein accountants prepare cash flow statements, departmental profit and loss, and market share reports which gives management an accurate picture of current operations. Moreover, reports issued to outside investors and stakeholders have been improved by computerized accounting systems. Improved reporting allows investors to determine if a company is a good investment for growth opportunities and has the potential to be a high-value company.

Technological developments have enabled companies to computerize their information systems. Accounting information systems (AIS) have also been computerized as a result of significant improvements in the technology. As accounting information systems are being computerized, accountants must gain the skills to use computerized systems. Use of information technology to perform accounting functions has brought a chance for companies to progress toward paperless offices. Furthermore, computerized AIS have brought opportunities for companies to perform the accounting functions more effectively and efficiently because using it has brought significant time and cost savings.

The author

--oOo-

is Administrative Assistant

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