Impact Of Technology On Accounting: The field and practice of accounting has taken another dimension since the massive advancement of technology. Technology has come to ameliorate the difficulties and uncertainties associated with man power in the various economic sectors. The accounting field is a benefactor of the positive impact of technological developments.
Accounting is a field that deals with the development and use of a system for recording and analyzing the financial transactions and financial status of an individual or a business. The totality of an economy has to do with financing and accounting.
Thus, the field cuts across all sector of the economy. With the emergence of technology, a lot has changed lately. It has in fact become imperative that all accounting related services adopt all available and relevant new technology.
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With these technologies, much more is achieved within a shorter time. More so, when it comes to data analysis and other accounting duties, certainty and accuracy is guaranteed as opposed to human factor error.
With the new technologies, the practices of manual computations are put in abeyance and overridden by efficient accounting technology. With the new technologies, more time is saved to be invested in pursuit of other discoveries in the accounting field.
The use of tax software has contributed immensely to a systematic calculation of tax, thereby guaranteeing predictability and effective tax accounting. This also saves time and minimizes the chances of mistakes and errors.
The whole process of tax enrollment and payment has been taken control of by technologies. Enrollment can be done, no longer manually but through online media designed for that purpose. The cost of manual enrollment which is costlier is also done away with. The process of enrollment and subsequent tax payment is also very swift.
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The emergence of Artificial Intelligence is also very impactful, for various accounting related human activities are now done by artificial intelligence.
Artificial Intelligence is a branch of computer science that deals with the reproduction or mimicking of human-level intelligence, self-awareness, knowledge and thought in computer programs. All that is needed to be done is the right programming.
Computing and forensic accounting are now achieved with the aids of smart devices. With the innovations, collection, assessment and operation of data can be done through mobile phones.
Computer program known as Chatbot are used to hold conversations through a chat room. This innovation can be seen as used in the banking sector and other finance management sectors. The chatbots is a robot that is programmed to enable the customers to the banks to take charge of the efficient management of bank services by keying in the right instruction to the robot.
Chatbots are also used by banks to set
out instructions and reminders to the customers and their employees. The extent of which such Chatbots operate depends on what they are programmed to do. The technology has the capacity to read messages and take the necessary actions or responses as was instructed.
The automated activities reserve time for the bank to focus on its development. More so, such activities which are likely to be repeated over and over again are culminated into automated technologies such as Robotic Process Automation.
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In the various sectors of business, accounting is of utmost relevance, not only for the computation of data but also for the monitoring of market structure. Accounting technologies can now be used to ascertain market performance in trades, study risks and opportunities and recommend appropriate actions for the user. Getting the price of sales is also now automated.
Human error is dispensed with, and the account is prepared automatically, thereby saving a lot of time to be channeled towards customer services. Accounting deals with a lot of details.
Thus, Database management technology is highly relevant in the field of accounting. The technology makes the collection and storing of data easier and safer. Such computations can be backed up as it keeps getting updated in the course of the duties.
Data ranges from financial records and reports, purchase orders, expenditures, book debts and receivables and other internal operations of the organization.
Database systems also play instrumental role in auditing. The era of manual auditing has been dispensed with. All the auditor will be required to do is to key in the necessary details to be audited and their rates and the result is calculated and processed automatically.
Optical Character Recognition technology is also used which makes it easier to search and sort information on database systems.
Technological advancements have rightly been accused of substituting human power with that of machine. In essence, less work is left for man power.
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Whilst this is good news, it is also implicit that humans lose their jobs to technologies. But this extent of this phenomenon is not overwhelming in the accounting industry because the services of man power are still needed to give instructions to the technology, and even review errors. While mistakes are not associable with technologies, errors are always very likely.
Cloud computing technology is also useful in the field of accounting. Cloud computing are services provided over the internet whereby shared resources, software, and information are provided to computers and other devices on demand.
Cloud computer are relevant in the accounting field for they make job easier and faster, as well as ensure accuracy by virtue of some of its automated functions. By virtue of cloud computer, the management and storage of financial data is made simpler. Cloud accounting is, however, not without risks, just like every bit of technology.
The risks peculiar to accounting in respect of cloud computing is the vulnerability of the cyber space, most especially for the fact that accounting deals with sensitive details of businesses and clients. Storing accounting data in the cloud is, however, beneficial and recommended, for the information are automatically backed up and can be easily restored in the case of loss.
Storing data in the cloud is entirely convenient, for it can be accessed from any location, as long as the person has access through the passwords. Cloud accounting is very beneficial to today’s banking system and other financial institutions.
Technological impact is also seen in the area of forensic accounting. Forensic accounting is the specialist accounting for the purpose of engaging in a legal dispute over insurance, fraud, insider trading, money laundering, bribery, and so on.
Through the technologies that have permeated forensic accounting, it is easier to monitor and trace irregularities in the accounting system through the analysis of the financial records, transactions and other relevant information.
People who specialize in this aspect of accounting are known as forensic accountants. Their services are also relevant in investigating disputes in respect of compensations, intellectual property infringements and all manner of frauds.
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The impact of technology in the field of accounting is apparent. The field of accounting seems to require the most available accuracy technology can produce.
So far, the accounting field has been met with massive technological improvements which aids in efficiency of financial services round the world. It is not without doubt that technological advancements in this area are still met with certain limitations.
And it is in fact, those notable limitations that give rise to the need for further development. Accounting as at now cope better even with large workloads, with high chances of accuracy.
Edeh Samuel Chukwuemeka ACMC, is a Law Student and a Certified Mediator/Conciliator in Nigeria. He is also a Developer with knowledge in HTML, CSS, JS, PHP and React Native. Samuel is bent on changing the legal profession by building Web and Mobile Apps that will make legal research a lot easier.