Information Technology in Accounting: An Applied Business Research

This essay explores the transformative role of information technology in the field of accounting. It discusses how technology, including specialized software and cloud-based systems, has reduced errors, improved efficiency, and changed the responsibilities of accountants. The essay also addresses the importance of IT skills for accounting professionals and the challenges that technology can introduce, such as system failures and data breaches. Concluding that while technology offers significant advantages, a strong foundation in accounting principles remains essential. Desklib provides access to this essay and many other resources for students.

Running head: APPLIED BUSINESS RESEARCH
APPLIED BUSINESS RESEARCH
Name of the student
Name of the University
Author Note

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.

Moreover, accountants do not enter data manually after the innovation of scanning
technology (van Laar et al., 2017). This process makes photograph of a page after which
software enter data in the relevant field by itself.
It is essential for accountant to be precise at the time of computation during
accounting work. Therefore, all equations are done in a computer, which can reduce the
possibility of error and improve the possibility of accuracy.
Cloud-based systems:
In almost every business process, businessman intends to utilise internet completely.
With the help of internet a person can do something more than searching company websites
or social media. Many large-scale companies are using cloud-based systems for streaming
their information safely. Manager or owner of respective company can obtain their data easily
at any time just by doing log on. This process can give the accountant immediate access of
data as well.
Accountants can easily manage and retrieve required files if these are kept in digital
format. In addition to this, cloud-based system can help a company to distribute their
information in other branches easily (Marshall and Lambert, 2018).Moreover, the use of
easily accessed cloud-based systems successfully reduces the process of Information
Technology as well as file-keeping expenses. This in term helps companies to secure and
retrieve data by taking backup.
Client Transaction in an efficient way:
Digital data as well as digital operations also help clients as they do not need an on-
site consultant. Thus, both accountants and clients can access their remote data at any time.
Therefore, each party can view, edit as well as comment on their statements (Revellino and

Mouritsen, 2015). Moreover, software as well as applications related to consumer has
permitted non-accounting professionals to know their finances easily.
The process of Mobile Accounting:
Nowadays, mobile applications are used heavily for accounting functions. Through
these processes, accountants can send receipts or add receipts. These all tasks can be
performed easily on screen. In addition to this, increasing connectivity between accountants
and clients through mobile devices also makes a better relationship of them. For instance,
when client needs some immediate answer regarding an issue, he can access the required file
or data easily by using tablet or smartphone.
Increasing role of accountants:
In traditional process of accounting, accountants need to perform a task for long hours
and this in turn makes them tiresome and tedious. However, after technological advancement,
the entire process of work becomes easy. Therefore, accountants receive more time after
development of accounting software as well as application (Bhimani and Willcocks, 2014).
Therefore, they can perform other tasks as well in comparatively fewer times. Therefore, the
person can perform any task in a specialised way through playing strategic roles. Therefore,
any important role can be performed easily by accountants and consequently these skilled
accountants can give companies a standard service. The accountant can perform the task of
data analysis as well as interpretation of data and provide various advices regarding financial
planning. Moreover, the person also acts as a business consultant and in this way the person
can involve himself in various operations of the company.

Advanced Information Technology:
In modern world, an accountant needs to remain up-to-date with various technologies
and software to become competitive and productive in an efficient way. Technology has
changed the working process in accounting industry. Therefore, to perform any kind of
accounting job, information technology has advanced the whole procedure.
Limitations:
Instead of such advantages, technology sometimes brings negative impacts and
consequently the company needs to bear huge costs. For instance, computer can stop working
due to some technological issues in the middle of accounting process. In this situation, the
accountant cannot complete the entire task within time Marshall and Lambert, 2018).
Moreover, other software experts can obtain confidential data through misusing their
knowledge. This further can generate huge trouble for this company.
Conclusion:
Therefore, the entire discussing can be summarised in this section. Nowadays,
accountants receive benefits by using technologies. In modern world, various technologies
and software help accountants to perform their tasks easily. This technology based system
increases the relationship between clients and accountants as both of them can access data
easily at any time. In addition to this, cloud computing helps business organisations to save
their data securely. The role of accountants also increases after the development of
accounting software as well as application. This is because the person gets more time for
performing different tasks. However, knowing computer knowledge and basic accounting
knowledge is not enough for an accountant. They need to know core knowledge of accounts
for solving various problems.

References:
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automation is changing auditing. Journal of Emerging Technologies in Accounting, 14(1),
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Marshall, T.E. and Lambert, S.L., 2018. Cloud-based intelligent accounting applications:
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Revellino, S. and Mouritsen, J., 2015. Accounting as an engine: The performativity of
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