Technology Adoption in Accounting Field

This article discusses the impact of technology adoption in the accounting field, including its benefits and limitations. It explores the similarities and differences between four selected articles on the topic. The managerial implications, study limitations, and future research directions are also discussed.

Running head: TECHNOLOGY ADOPTION IN ACCOUNTING FIELD
TECHNOLOGY ADOPTION IN ACCOUNTING FIELD
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1TECHNOLOGY ADOPTION IN ACCOUNTING FIELD
Introduction:
Accounting is one of the crucial function in most of the business. For smaller firms, it is
maintained by a bookkeeper, or an individual person called an accountant. When it is the more
prominent firm, usually there is a bigger firm that is assigned with all the responsibilities of
keeping records of all the transactional details. Four articles have been selected on the same
topic, accounting. The four articles are selected on the basis of their contribution to the topic and
critically analyzed in order to find the similarities, dissimilarities of their themes. The paper also,
discusses the managerial implication of the four articles, study limitations and future research.
The concept of accounting
The systematic and comprehensive recording of financial transactions can be referred to
as accounting in the most simplistic terms. The entire process is a vital process of keeping a
record of financial aspects in order to maintain responsibilities towards government and other
authorities. Accounting is knowing the specific places of expenditure, investment and savings.
Every company requires an accounting team or individual, depending on the size of the
organisation, to maintain the record. It brings forth financial statements that summarise
company’s operations, financial positions and cash flow over a specific period. An appropriate,
concise summary of several transactions that could range from hundreds to thousands of
financial transactions in that same period is the way of accounting.
Over the years, there have been several changes that occurred in the field of accounting.
Considering the advantages modern methods of accounting have been proved to be highly
beneficial. Therefore, due to the advantages of the modern methods, the changes have become
rapid and fast adapting.

2TECHNOLOGY ADOPTION IN ACCOUNTING FIELD
Similarities between the articles:
Ionescu et al. (2013) have stated the same, the information obtained from various streams
of accounting such as cost accounting and management accounting is extremely valuable as it
helps in management and making important decisions. it is agreed by According to Lim (2013)
as well. According to Tarmidi et al. (2014), for a long time, the basic accounting has been
handled by a bookkeeper, there have been changes in the system that have involved advanced
accounting which is typically managed by experts and qualified accountants. The qualified
accountants and experts help in making decisions supported by logic and reasons. Along with
specialised position, another change that has evolved is the involvement of technology in
accounting. Al the four articles have provided almost similar concept of accounting. Another
common theme found in the articles are, after computers arrived, it became inevitable to proceed
without the use of computerised methods. Also, it is a dynamic process that seems to grow only
faster than ever before. Accounting software has become increasingly common in, and there are
both advantages and disadvantages of relying on technology for all the tasks and numbers.
Different themes across the articles:
Ionescu et al. (2013) have discussed traditional accounting versus cloud accounting.
According to Ionescu et al (2013), the advent of cheap and fast computers have certainly
changed the face of business in various ways. In similar ways, the critical aspect of the business
has been impacted as well. Accounting was processed manually before the arrival of computer
and other computerised devices in columnar papers. The columnar papers would transform into
voluminous binders that were stored in order to maintain the tracks. According to Vasarhelyi,
Kogan, and Tuttle (2015), there are several benefits of Benefits of technology in accounting. In
the past two decades, improvement and changes have been at rapid speed. Accounting as a

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profession has also been transforming for there is a need for productivity as well as optimisation
available that helps in better, accurate and more result. Artificial intelligence and robotics are
extremely efficient devices that help increase productivity. Although an agent is adequate to
replicate the human brain, it is entirely not assured that they would be able to carry out a task
with concern. In support Lim (2013) have stated the Impact of Information Technology on
Accounting Systems. However, the other articles have focused on other aspects. Tarmidi et al.
(2014) focused on the ways to explore the level of awareness and adoption of cloud computing
among the small and medium enterprises considering Malaysia.
According to Ionescu et al. (2013), the business owners need to consider both advantages
and disadvantages when it comes to business. Most of the business owners find it hard to do the
accounting by themselves since not everyone is an expert who is well aware of accounting
processes. When there is difficulty regarding the accounting, the business owners hire an
accountant or use the accounting software. The reasons for using technology for accounting is
for its simplicity. A wide variety of accounting software programs are present that are consumer
friendly and very easy to use. People dealing with small firms can browse from a range of
friendly software which would help in accounting. Also, the most glaring and efficient difference
modern technology has compared to the traditional methods is the speed. Once a data is saved, it
is saved and secured. The programs provide management along with reports in very less time.
The manual system is time-consuming compared to what is received from technology. There is
no waiting for weeks and months in order to get the accounting reports. Accuracy is a significant
difference when the traditional and contemporary methods are compared. There is less chance of
complication as the computerised system has increased the efficiency. It is easy to add an extra
column, or even numbers can be moved from one column to another with minimum changes.

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There is no ending to the spreadsheets which helps in keeping records of unlimited data. The
problem of limitation is eliminated with spreadsheets. Technology might be expensive in the
short run, while in the long run technology is cheaper. The manual system is suitable for small
firms however for the larger firm the affordable costs of computers and software are most
suitable. Technology had made a significant change when the concept of back up was innovated.
There is a significant risk of losing data in a manual system, and often there is a need of
recreating the entire data when the data is lost. However, the loss of losing data is much lesser in
the computerised method.
According to Vasarhelyi, Kogan, and Tuttle, (2015), although there are advantages, there
are disadvantages as well of the advanced technologies. However, despite the benefits of
technology in accounting has limitations. Security is one of the central issues in accounting. The
information getting in a computer can have a high risk of getting accessed by unauthorised
groups. A poorly protected program has high risk, and the database leaves an opening for
hackers or unauthorised personnel to access an organisation’s information. Information that
requires confidentiality and security are mostly included in a firewall to stop external hackers
and password protection for internal access restrictions. Automation can be problematic in many
ways. While there is time-saving automation which sends payments and invoices automatically,
it is prone to making an additional issue. Also, if the password is forgotten, it can create
problems. Rapid change in technology is hard to keep up. And it is the same in the accounting
field. An innovative system would certainly be more than efficient, however, and often the
change requires the entire system to be replaced. It is costly and time consuming for companies
to keep the difference. Also, switching to a different system leads to transferring all the data from
one system to another. It is not only getting the new technology but also the process of getting to

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know the new technology. With each new technology follows training. The staff who are
knowledgeable are often replaced for they are not technology friendly which subtracts the value
of the organisation from some extent.
Managerial implication of the four articles
Cloud computing is a form of internet-based computing that helps the shared computers
process resources and data on other devices on demand. Cloud computing has helped to access
data and information from a different computer when demanded. It is a helpful feature as it lets
businessmen connect to resources despite having considerable distance. Since people are largely
depended on mobile phones and even mobile phones are now a device used widely for business.
It is an accounting today is possible even in mobile devices due to technology. In order to
connect and contact the potential clients, firms have worked mainly in the social media for
expanding their brand reach.
Study limitations and future research direction
Good or bad, it cannot be denied that accounting will involve a large part of technology
in its field. Although the articles have discussed the issues in details, there could be usage of
managerial implications in more precise manner. Technology, as it is used in the field of
accounting, will continue to be used. The world today is largely depended on technology. It is
depended on technology for even minor tasks that could be done manually instead a mobile
phone of a calculator is used. The accounting in future will be highly depended on technology.
Due to globalisation, cloud computing and mobile accounting will gain large popularity. The
way the position of technology is perceived, it appears to that it is highly unlikely that
technology will find a way to be replaced in the near future.

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Conclusion:
The term can also be used to indicate the process to summarise, analyse and report
regarding the transactions to the agencies that are oversight or regulators and entities that collect
the tax. There are undoubtedly various benefits of using the computerised method. Therefore
there is extreme usage of technology in the accounting field. In the end, it can be concluded that
the it is highly doubtful that technology will find a way to be substituted in the near future.

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References:
Ionescu, B., Ionescu, I., Tudoran, L. and Bendovschi, A., 2013, June. Traditional accounting vs.
Cloud accounting. In Proceedings of the 8th International Conference: Accounting and
Management Information Systems, Bucharest, Romania (pp. 106-125).
Lim, F.P.C., 2013. Impact of information technology on accounting systems. Asia-pacific
Journal of Multimedia Services Convergent with Art, Humanities, and Sociology, 3(2), pp.93-
106.
Tarmidi, M., Rasid, S.Z.A., Alrazi, B. and Roni, R.A., 2014. Cloud computing awareness and
adoption among accounting practitioners in Malaysia. Procedia-Social and Behavioral
Sciences, 164, pp.569-574.
Vasarhelyi, M.A., Kogan, A. and Tuttle, B.M., 2015. Big Data in accounting: An
overview. Accounting Horizons, 29(2), pp.381-396.