Question

Why are IT systems important for accountants to understand? What impact does technology have on the field of accounting?

Answer 1

The accounting profession is changing rapidly and one of the reasons for such rapid change is productivity optimization available through newer technologies. Accounting software programs are becoming more automated and the role of the accountant is changing to that of a business advisor. The role shift of the modern accountant to a business advisor requires new skill-sets, including professional skepticism, judgement, and critical thinking skills.

Thus IT systems are important for accountants to understand as it will enhance thier ability to interpret the data effectively and efficiently and they no longer have to be burdened with task oriented jobs and can easily shift towards accounting automation and be updated

The following are the impact of technology in the field of accounting:

1. Instant Access: Cloud computing keeps business information in a secured internet server. This provides shared computer processing resources and data to computers and other devices on demand. This allows accountants to perform accounting tasks from any location as well as the ability to deliver financial information and reports through the cloud. This opens up a new way for accountants to work with their clients. Now, there is more time to engage with the client and focus on business strategy instead of getting burdened with detailed processes.

2. Software advancements: Accounting and tax software advancements have streamlined the entire process of accounting and filing returns. Most accounting software integrates with most corporate tax software, which means the data is quickly segmented and categorized in the appropriate tax categories. Not only does this make tax filing faster, but it also makes it more accurate.

3. Mobility : Many small-business owners don't need a full-time in-house accountant. With the internet and advances in information technology, a virtual accountant is as effective as an in-person accountant. This way of doing business reduces overhead and travel time.

4. Bank accesibility : Major accounting programs and banks sync with a few mouse clicks. Online accessibility provides the bank information to the accountant as soon as it is available, which streamlines the process of monthly bank account balancing. Business records stay up to date, and the accountant's life at tax time a lot easier, which minimizes costs to the company.

5. Mobile accounting: Accountants are increasingly dependent on their mobile devices to accesses data. Mobile connectivity also bridges accountants and their clients.Firms can reconcile, send invoices, add receipts and create expense claims from smartphones or tablets.

6. More diverse roles for the accountant: Developments in accounting software and application have now given accountants more time on their hands for more diverse tasks. They are able to veer away from time-consuming number crunching and are increasingly able to expand into more specialized and strategic roles. More specific and value-adding roles are now up for grabs, and skilled accountants can provide more high-level specialty services. These may include data analysis and interpretation, providing financial planning advice and business consulting services, and more involvement in your company’s ongoing operations.