Impact of Technology and Pandemic on Finance and Accounting Practices

This report explores the evolving landscape of finance and accounting, focusing on the transformative impact of technology and the challenges posed by the COVID-19 pandemic. It delves into the development of new technologies like Enterprise Resource Planning (ERP) systems, cloud computing, and innovative tax applications, highlighting how they streamline processes and improve efficiency. The report also examines the problems encountered by accounting professionals during the pandemic, including technological disruptions, difficulties with financial instruments, changes in tax regulations, and the need to adapt to remote work. The conclusion emphasizes the importance of adapting to technological advancements and the need for professionals to develop strategies for risk management and preparedness for future crises, offering insights into how technology can help the finance sector navigate future challenges. The report uses multiple sources to provide a comprehensive overview of the subject.

Accounting & Finance

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Development of new technology in the area of finance and accounting ...............................3
2. Problems faced by the accounting professionals in the Covid pandemic...............................4
CONCLISION.................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Accounting is the process of identifying, recording, sorting, analysing and interoperating
the information to the users. Accounting is considered as the communication of the company.
The advancement in technology has played an important role in the accountant jobs. The
innovations has increased the capacity of the accountant to estimate the statistical values. The
encouragement in accounting technology has improved the working ability of employees to
interpret the information effectively and efficiently. The profession of accounting is changing
rapidly to improve the productivity by adopting new technologies. It has vast function to make
the accountant modern by utilising new skills, knowledge or analytical thinking. In the second
question there is the discussion of the problems faced by the company in finance and accounting
during the Covid 19 pandemic (Akhtar, 2018 ). There are many micro or macroeconomic factors
that has impact on the finance profession. The businesses has suffered several problems in
accounting due to corona virus. There are various accountants who has to work on the hybrid
mode. They faced many problems with the internet connection and the work load. The meeting is
conducted on the online mode. With the pandemic there is frequent changes in the tax laws,
regulations, and the GST amendments that is quite complicated to adapt this situation.
MAIN BODY
1. Development of new technology in the area of finance and accounting
There has been constantly technological changes from the past years and it has affect on
the operations of the company. The pattern of accounting has changed and it has been observed
the dynamic changes in the criteria of productivity. The bundle of paper is exchanged by the
apps or software. It has helped the accountant to facilitate the work easier.
1. Enterprise resource planning system (ERP) – It is the software that has been launched
in the 21st century to support the accountant work smoothly. It is the integration of
multiple departments of the businesses on the identical system. It helps to furnish the
information in diverse manner and assist the tasks among the several divisions. The data
is applied by the common principle database which is shared with the functional sections
like finance and marketing (Alqatan, Chbib, and Hussainey, 2021). Thus the ERP
modules is widely used for the finance applications and the accounting.

2. Cloud technology – It is the very advanced tool is used in today's generation. The flow
charts is used by the symbol of cloud over the internet and known as the cloud
computing. The service which is utilized on the internet for storing the information
permanently and utilized the company software on the remote server. It provide benefits
to the accountant to manage financial from some location along with the capability to
transfer the monetary data and documents through cloud.
3. New innovations in tax applications: These applications has increased the accuracy by
declining the margin of mistakes. The company can perform audit with effectively and
efficiently by using the advanced software of tax. These will help the stakeholders to
ignore the concept of tax penalties or to prevent them with any issues (Comiran, and
Siriviriyakul, 2019). The knowledge of fresh accounting software and the models of the
businesses is essential for the accountant to conduct the audits effectively and to assign
the responsibilities.
4. Mobile accountancy: There is increasing dependence of the mobile for the accountant
to access the information. This connectivity bridges the gap between the accountants and
the clients. Through this feature accounting companies can transfer the invoices,
reconcile, and generate the expenses claims from the mobile phones. It aids the
businesses firms to manage the activities of the firm.
5. Enlargement of IT sector – There is high advancement of information technology and
the accountants is forced to procure new knowledge and skills. Company has encouraged
to acquire high technical or the computer skills. It become important for the
professionals to develop these kinds of skills and it is the inherent part of the knowledge
(Dresdner, and Fischer, 2020). The accountant should have deep knowledge of
accounting information and the sound ability to comply the accounting principles,
regulations of the government and to communicate the tax laws along with they must
have the skills of the IT that is to merge financial with the information applications.
2. Problems faced by the accounting professionals in the Covid pandemic
There are lot of sectors including the accounting industry is suffered in the Covid 19
pandemic. According to the opinions of the financial accountants has faced a lot of accounting
disruptions in the sector. It has been observed that many company had close down the offices

and authorize the employees to work in the remote areas. Thus finance employees has to adapt
this new pattern of work.
1. It is estimated that employees has suffered from several technological changes. They
have to work from the home and feel left out. They miss the working environment of the
office or the occupational contact with colleagues. It become difficult for the businesses
to manage the office task virtually. The organisation has faced trouble to communicate
with the group partners on the virtual mode (Lleshaj, and Korbi, 2020). It is difficult for
employees to maintain the balance between the personal or the professional life and
measured in terms of productivity assessment.
2. There are various issues is faced regards to the financial instruments. There is the
announcement is done by the enterprises which identify the bunch of sectors or area that
is severely hit with the Covid – 19. The epidemic has major affect on the computation of
the ECL and it rises the quality of credit for the portfolio managers of loan. It is relay on
the weighted and the constant amount of profit helps to measure the results and time
value of economics.
3. The government has cut down the income tax rate and provides various subsidies to
control the situation of the outburst of the coronavirus. This changes has impact on the
amendments of the tax regulations that needs to be considered by the businesses. It
becomes challenge for the accounting professionals to adapt the new changes and the
laws. The professionals need to adapt the new rules of tax or to provide the training to
other staffs of finance departments to cope up with this situation.
4. The company has to evaluate the affect of corona virus on the income of the businesses
that is used to take the crucial decisions such as the analysis of elements or to find out the
adequate details. The company has taken the decision by including the many variables
like amendments of the contract, collection from the customers or price changes will put
the affect on the finance transactions of present or future disclosures of contract(Moses,
and Hopper T., 2021).
5. During the pandemic there are lots of changes occurred in the accounting. The
accountants has to keep in brain the amendments before making the financial statements
to conclude the financial data. Auditor also note the deviation in accounting while

making the audits documents. The risk of cyber security is also a threat to the finance and
accounting firms. These type of variations has the unfavourable impact on the company.
CONCLISION
It has been concluded from the above that accounting or finance is the crucial part of the
businesses. In earlier times there is lot of paper formalities in the accounting that has changed
with the evolution of technology. It makes feasible to complete the financial activities in quick or
smooth manner. The technologies such as Tally, ERP system, cloud management has helped to
break the complex data in to simple data. In this software there is the collection of huge data that
helps the client to execute the finance work in fair manner. It will help in development of every
sector not in the finance area. In the last part the corona virus has affected the finance sector in
critical way (Tan, E.K. and Sen, 2019). There are several businesses that has to be closed
because they was not able to survive in the COVID situation. The professionals prepared the
statements by anticipating the several tax laws and changes has incurred in the corona. There is
recommendation to the finance professionals to modify or improve the planning to businesses for
recovery from the disaster, estimate the profile of risk and generate the methods for risk
management. Through this employees is able to use the platforms of digital technology. It has
also given experience to finance staffs to deal with such epidemic and crises in the future.

REFERENCES
Books and Journals
Akhtar, S., 2018. Dividend payout determinants for Australian multinational and domestic
corporations. Accounting & Finance, 58(1). pp.11-55.
Alqatan, A., Chbib, I. and Hussainey, K., 2021. Theories related to the relationship between
board diversity, earnings management, and firm performance. Corporate governance
and its implications on accounting and finance. pp.1-26.
Comiran, F. and Siriviriyakul, S., 2019. Analyst earnings forecast precision and local advantage:
evidence from American depositary receipt firms. Accounting & Finance, 59, pp.481-
510.
Dresdner, H. and Fischer, D., 2020. Definitions and determinants of audit quality. Journal of
Corporate Accounting & Finance, 31(4). pp.197-201.
Lleshaj, L. and Korbi, A., 2020. Portfolio selection and var estimation: Evidence from western
balkan countries. Universal Journal of Accounting and Finance, 8(4). pp.92-102.
Moses, O. and Hopper, T., 2021. Accounting articles on developing countries in ranked English
language journals: a meta-review. Accounting, Auditing & Accountability Journal.
Tan, E.K. and Sen, A., 2019. Does educational diversity of managers matter for the performance
of team‐managed funds?. Accounting & Finance, 59. pp.801-830.