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PRINCIPLES OF ACCOUNTING
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Added on 2020-05-16
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Accounting Software Automation refers to the introduction of computers and software for the process of computations and analysis. As per the research of the group, there has been wide changes in the accounting field with the introduction of computers and software for the process of computations and analysis. As per the research of the group, there has been wide changes in the accounting field with the introduction of computers and software for the process of computations and analysis.
PRINCIPLES OF ACCOUNTING
Added on 2020-05-16
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Running head: PRINCIPLES OF ACCOUNTINGPRINCIPLES OF ACCOUNTINGName of the Student:Name of the University:Author’s Note:
PRINCIPLES OF ACCOUNTING1Table of ContentsIntroduction...............................................................................................................2Technological Advancements in Accounts...............................................................2Analyzing Technological Advancement...................................................................4Impacts of Technological Advancements in Accounting..........................................6Accounting Skills, Ethics and Career Opportunities.................................................8Comparing Accounting Practices of Australia and United Kingdom.......................9Future Scope in Accounting Profession..................................................................10Recommendations...................................................................................................11Conclusion...............................................................................................................12Reference.................................................................................................................13Appendix.................................................................................................................15
PRINCIPLES OF ACCOUNTING2IntroductionThe main purpose of this report is to conduct a research on what are the scope oftechnological advancement of accounting field in near future. The research will also deal withhow such technological innovations in the field of accountancy help the users and accountants(Bebbington, Unerman and O'Dwyer 2014). The research will also be aiming to reveal theimpacts and effects of technological innovations on the various accounting designations whichwill be available in future. The innovations in accounting may be due to introduction of newtechniques such as application of artificial intelligence and use of accounting softwareautomation.In todays world the role of technological advancements in the overall development of thesociety is crucial. Most of the companies try to bring about innovations in different areas ofbusiness in order to gain an advantage or competitive edge (Weigelt and Sarkar 2012). Inaccounting field, innovations has taken place which has changed significant part of the internalprocesses of such businesses (Scott 2015). The most common example for such technologicaladvancements in business is the introductions of computers and different software whichreplaced the humans in companies for maintaining the accounting records. The role ofinnovations in a business is essential in order for a business to survive and be competitive in thischanging market environment.
PRINCIPLES OF ACCOUNTING3Technological Advancements in AccountsAccounting may be defined as the systematic process of preparation and presentation offinancial information. A research has been conducted to determine the development ofaccounting as professions with the introduction of automated software and Artificial Intelligence(Anandarajan, Anandarajan and Srinivasan 2012). Most of the larger firms in Australia havealready implemented the automated software and artificial intelligence for the purpose ofaccounting. Only the smaller and medium business have not implemented these techniques. Asper the research of the group, there has been wide changes in the accounting field with theintroduction of computers and software for the process of computations and analysis. Thetechnological advancements of the accounting techniques which has popularized the use ofArtificial Intelligence and Accounting Software automation. Artificial intelligence is thetechnology which allows computers to perform tasks which are decision based which waspreviously performed by humans (Nilsson 2014). Such a technology gets better and better as it isused for different decision making processes and analysis tasks. As per recent studies around80% of company executives are of the opinion that with the introduction of Artificial Intelligencein a company, the company can gain competitive advantage (Taipaleenmäki and Ikäheimo 2013).Artificial Intelligence incorporation in accounting process will significantly reduce the amount ofdata which are required to be analyzed by the accountants and makes the work of the accountanteasier. Accounting Software Automation refers to the process of incorporating the accountingprocedures to computerized software and programs (Brennan et al. 2012). The application ofsoftware and computer programs in the process of accounting will be reducing the work of theaccountants and make the accounting process more effective and efficient.
PRINCIPLES OF ACCOUNTING4As per the research, the current accounting of the company consists of use of accountingsoftware and use of computerized system of accounting. These techniques are implemented byalmost most of the companies in Australia. The current accounting practices does not include theArtificial Intelligence program which is still at its initial stages. The adoption of ArtificialIntelligence in the business of Australia will be taking further time in implementations Sharma,A. and (Panigrahi 2013). Thus there is scope for introduction of Artificial Intelligence inAustralian companies. The level of skills which are required in the profession of an accountant isthat the accountant must be aware of the necessary standards, conventions and principles whichare currently in force in the country. The profession of accountants are becoming significantlyimportant these days as the companies are growing continuously as the market is developing.The role of accountants in the business is important as they are responsible for the preparationand presentation of the financial statements of the company. As the business are growing thescope for accounting in such business are also growing. Many businesses have their separateaccounting department with teams performing as per the requirement of the business. The teamsare given the responsibility of preparation of different ledger accounts. Moreover with theintroduction of corporate governance and business accountability, the role of accounting hasbecome more prominent. Effective accounting of financial information helps in prevention offrauds and also a means to measure the performance of the company with previous yearperformances. As the process of accounting is being undertaken in the computer environment, itmakes the process more systematic and much easier to access. Accounting which utilizes humanresources need to maintain a lot of records which is not required if the company is maintainingcomputerized books of accounts for the company. Another element of using automated software
PRINCIPLES OF ACCOUNTING5and Artificial intelligence is that as such technologies are made by humans and therefore are alsosubjected to errors which are made by humans.Analyzing Technological AdvancementThe introduction of artificial intelligence and automated software will definitely benefitthe business and also affect the internal structure of the company. The research was conducted bythe group on the future scope of accounting and how the process of accounting can be improved.The group was surprised to know that most of the companies already have implemented theautomated software and Artificial Intelligence techniques in order to make their accountingprocess more systematic. Another thing which was identified were that some business are findingit difficult to implement the new strategy as it is still in its initial process. The group identifiedcertain benefits which are associated with the implementation of automated software inaccounting process which are discussed below:1.Time Saving: With the use of Artificial Intelligence in the accounting processes, themanagement can save a lot of time. The accounts departments are required to maintainthe books of account which if maintained physically requires a lot of time. In case ofcomputerized environment, time for preparation and maintenance of financial statementsis considerably reduced.2.Elimination of Risks and Mistakes: With the introduction of computerized system andautomated software the risks associated with the physical book keeping of accounts areminimized. In a computerized environment there is no chances of mistakes likecomputation error and omission of a transactions (Hilton and Platt 2013). Incomputerized system of accounting, software packages are such that if the accountantenters one transaction then all the ledgers accounts associated with the transactions get
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