The Role of Information Technology in Accounting

Running head: APPLIED BUSINESS RESEARCH
APPLIED BUSINESS RESEARCH
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Introduction:
Technology has brought about great advancement in every field including the field of
accounting. In modern world, most of the companies operate their tasks efficiently through
using technology. This in turn helps these companies to adopt business strategies easily in
and efficient way. However, using technology have both positive and negative impacts.
Accounting is a specific field that deals with financial transactions in various organizations
irrespective of their fields and sizes (Misra et al., 2015). This particular assignment clarifies
the role of information technology in the field of accounting. The accounting profession has
changed drastically after evaluation of technological process. In this context, some
researchers have stated that new software have made the job of accounting comparatively
easier (Kokina and Davenport, 2017). By using software, accountants can reduce their chance
of error in work.
Tools for reducing Margin of Error:
Researchers have observed that technologies help accountants to reduce margin of
error and increase accuracy through using special accounting software add word processing
tools. Some companies use Microsoft Excel for the purpose of data entry as well as running
ledgers. However, at present, most of the companies intend to purchase special software.
With the help of this software, accountants can do their data entry work easily and provide
accurate ledgers as well as financial reports (Pointurier, 2017). These further benefits
businesses to reduce their tax related penalties and consequently reduces margin of error.
This reduction helps companies to achieve financial stability.
Requirement for more strategic training:

Introducing special software programs is not sufficient without trained operators.
Therefore, accountants require computer knowledge and right system to conduct various tax
related services easily. Accountants need to perform statistical analysis as well as forecasting
of model in an efficient way. Through using software, the person can perform any accounting
related task through applying basic knowledge. However, in modern world, accountants are
not considered as the number crunchers, Instead of this, they play various professional roles
considering diversified activities. Moreover, they are considered as the part strategic planning
teams. Therefore, accountants can successfully give advices, develop new business processes
and provide future forecasts. Therefore, core knowledge of accountancy is required.
Importance of IT Skills:
Professional accountants need various skills for being hired in a reputed organisation.
With core knowledge of accounting practices, the applicant also requires sufficient
knowledge of IT programs (Janvrin and Watson, 2017). In the America, companies always
give priorities to technologies. Therefore, applicants need to pursue proper training (Johnson,
2017).
Chief impacts of technology in the sector of Accountancy:
According to researchers, technology in accounting has started to use and some
significant changes can be observed. The following five changes can be described briefly that
researchers have observed for the last five years.
Accounting software:
Accountants use pen, ledger, and desk calculator for conducting their tasks in
traditional way. However, at present, they use specialised software of accounting and
efficient software tools, with the help of which they can enter data quickly and computation.