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Contemporary accounting theory | Assignment

   

Added on  2021-04-17

4 Pages554 Words24 Views
Running head: CONTEMPORARY ACCOUNTINGContemporary AccountingName of the StudentName of the UniversityAuthor’s Note

1CONTEMPORARY ACCOUNTINGIn the recent era of technological advancements, massive ongoing developments can beseen in the accounting information system that have positive impact on accounting practices. Inthis context, the name of Enterprise Resource Planning (ERP) needs to be mentioned as animportant accounting information system. In the presence of ERP system, the managements ofthe companies become able to integrate the core business processes like accounting, sales,warehousing and others. There are two types of ERP system available; they are On Premise ERPand Hosted ERP. It needs to be mentioned that ERP system has brought major changes ininformation technology. As a major change, ERP system collects the shares transactional data ofthe organizations from various sources so that data duplication can be avoided and to integratedata with a single truthful source. Another technological improvement is the Cloud ERP thatruns the entire company on a single cloud-based management suite. In the presence of ERPsystem, companies can record all business transactions irrespective of their size and nature (Hall2012). Due to this system, anytime necessary information can be found in the computer systemwhile required. ERP system makes the process of payment easier for account payable. With thehelp of ERP system, companies can make payment of the bills with the click of a button. Thepresence of ERP system helps in the process of easy billing. All the information related toaccounts receivable is recorded in the information system to print bills. This can be done daily,weekly or monthly basis depending on the demand of the business (Simkin, Norman and Rose2014). Most importantly, ERP system helps in the generation of all necessary financialstatements without calculating anything. The accounting staffs use to enter the dates into theinformation system and it generates the required financial statements. Thus, this process comesin handy when there is a requirement of financial reports from different periods. At the time ofyear-end closing, accountants face difficulties in preparing all the necessary financial statements

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