Effect of Information and Communication technology (ICT) on Accounting Information System and Business Performance

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
Contemporary Issues in Accounting
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2CONTEMPORARY ISSUES IN ACCOUNTING
Selected Research Topic: Effect of Information and Communication technology (ICT) on
Accounting Information System and Business Performance
Introduction
This study intends to examine implementation of Information and Communication
Technology (ICT) on overall efficiency and quickening of accounting exercises and the way
it can make sure effective delivery of accounting operations.
Identification of accounting issue
Previously, accountants were dynamically involved in different accounting actions as
the conventional methods were in position. Records on a daily basis had to be maintained by
humans, financial statements had to be prepared and arranged as the declaration of pecuniary
position and announcement of comprehensive earnings were carried out manually by the
accountant (Eason 2014). However, there were different issues associated to manual
accounting practices that could weaken manual accounting actions. Procedures of accounting
using paper as well as ledgers else wise identical tools need time to complete tasks. Also,
manual system of accounting is also subject to errors as manual systems necessarily do not
possess internal checks as well as balances (Avgerou and Walsham 2017). Also, issues with
manual system of accounting include inability on the part of the firm to prevent workforces
from assessing sensitive data present in paper ledgers as well as journals. Implementation of
information and communication technology is said to exert impact on system of accounting
by replacing manual systems by automation. As per Eason (2014), proposition of technology
is supposed to cause alteration in business concerns associated to systems of accounting and
performance of enterprise, that necessarily has been of immense concern as well as interest.
Decisions and plans of accounting can be influenced by the implementation of ICT in
enterprises that in turn can help the firm to remain relevant and at the same time competitive.

3CONTEMPORARY ISSUES IN ACCOUNTING
It is essential to admit that computerized systems, have enhanced the functionality of
departments of accounting in enterprises. In this way, implementation of ICT has augmented
timeliness of accounting information that facilitate accountants to arrange reports and
examination of operations, thereby presents a clear image of present operations, helpful to
firm’s management. Records can be kept and tracked more effectively with the use of
computerized system increasing company efficiency and minimizing errors to ensure
customer satisfaction (Madon and Krishna 2018). So far, ICT has improved corporate
relationships, facilitated speed and enhanced quality delivery in jobs. It has also improved
productivity and increased value creation of organizations.
Importance of the research
The research work at hand can help in gaining deep insight and comprehensive
understanding regarding the way information and communication technology can prove to be
a pertinent and at the same time inevitable facet in system of accounting. The study helps in
highlighting the ways ICT can address the issues faced by the manual system of accounting
by replacing the same with automated/computerised software based system of accounting.
This study thereby helps in analysing the ways in which implementation of ICT can aid in
enhancement of speed of preparations of different accounting reports (Schaltegger and Burritt
2017). Also, this study can examine effect of execution of ICT on maintenance of both
reliability and accuracy of different financial reports that in turn has an impact on transparent
and honest business dealings of enterprises with customers, business partners as well as
outsiders
Practical Motivation
Demonstration of the reason why the issue is important to practice

4CONTEMPORARY ISSUES IN ACCOUNTING
The identified issues of utilization of manual system of accounting include dearth of
timeliness, proneness to errors, and lack of security and unavailability of copies. Essentially,
the manual system of accounting is in itself extremely laborious and requires huge time to
complete different tasks. Also, errors are also pretty frequent in manual accounting
procedures. In this regard, the study at hand can help in understanding impact of execution of
ICT on systems of accounting and the way the same can address the existing issues of manual
system of accounting (Simkin et al. 2014). The study of the current issue is said to be
important to practice as this can help in comprehending the causes and effects of
implementation of information and communication technology on system of accounting.
Theoretical Motivation
Overview of the contribution of the research to the theory
As per the open systems theme, a business concern interacts with, acclimatizes to and
intends to control business environment in a bid to continue to exist (Eason 2014). In current
times, it can be observed that environment pressures exert an influence on the behaviour of
different enterprises from the perspective of decision making and process selection. On the
whole, these environment pressures have formed a competitive environment for the business
arena. Generating superior-quality and well-timed decisions relies partially on data quality
and the subsistence of on-line as well as real-time data. In this regard, information
technologies are utilized to facilitate business dealings, smooth the progress of decision
making for enterprises (Avgerou and Walsham 2017). Therefore, the current research work
can positively contribute towards examining the function of information technology that is
accountable for developing, executing and maintaining several controls over business
procedures of a business enterprise.