IT’s Influence on the Accounting Industry
The essay examines how information technologies affect the modern accounting and the processes occurring in it. At the same time, globalization is essential, which is commonly referred to as the gradual movement towards the transformation of the universe, at which the stage of unification and convergence of economic, social and cultural norms.
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Write My Essay For MeInformation technologies are a combination of methods and means used for collecting, storing, processing and distribution of information in a geographic space. In today’s economy, information technology plays a huge role. All resources of the computer industry at this stage of development of the world community are aimed at automating traditional economic processes. The active use of electronic technologies provided by the information economy leads to the distribution and consumption of public goods, public production in a more accessible form. The key difference from traditional accounting methods of a generally accepted economy, the main tool of which is the management and market model of doing business, the information economy is based on message management, innovative entrepreneurship, information engineering and auto-formalization of economic processes (Guney, 2014).
Among the most important factors influencing the key business processes and the development of the theory and practice of accounting, the most significant are:
- development of computer technology, communications equipment and giving data;
- new, modern possibilities of documenting the facts of economic activities, their registration and archiving;
- the ability to automate logical accounting operations using information technologies;
- the use of a system of registers, negotiable statements, statistical tables, a certain sequence of their manufacture and methods for recording and storing information;
- new organization of the system of control and correction of errors arising during the verification of the initial information, analytical and synthetic accounting registers.
The use of information technology in accounting significantly increases its efficiency, since control over the compilation of calculations, stocks and obligations over any period of time can be ensured by compiling reference registers and a system of operational monitoring. Consequently, without resorting to manual sampling and groupings, it is possible to obtain turnover of funds and determine the balance of accounts, suppliers, customers, counterparties for any period of time or on any date. All these processes change the speed of turnover of the products or services.
The main innovation of recent years is the emergence of document exchange services. A modern accountant can exchange electronic documents with tax authorities, extra-budgetary funds, government statistics agencies, as well as with their counterparties, without leaving the office. New technology innovation can be seen in the security system that protect the core of any business (accounting and other financial data).
Currently, accounting without computerized data processing is almost unthinkable. Automation of accounting using a personal computer today is not a difficult task either for the employee or for the user of accounting programs. These skills are required in job descriptions of new employees. A “modern” accountant should possess information accounting and analytical skills. Accounting skills consist in the ability to work in reference systems. However, today the simplicity of solving the computerization of accounting has been achieved in a complicated way: from computerization of individual sections of accounting to the establishment of related databases for compiling the balance sheet of an enterprise. Mastering by computer accountants at the level of not only the user, but also programming allows you to radically reconsider the strategy of accounting programs.
Information resources are of tremendous material value, and if they are not sufficiently protected, unauthorized access to these resources can lead to disasters, and in a competitive environment of corporations, firms and entire states, can radically change the situation in favor of having received such access. Thus, the penetration of information technologies into the accounting industry leads to its globalization and the emergence of new economic instruments. In general, this leads to an acceleration of economic processes and production.
References
Guney, A. (2014). Role of Technology in Accounting and E-accounting. Retrieved from https://www.researchgate.net/publication/275544290_Role_of_Technology_in_Accounting_and_E-accounting
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