Question

What new technologies are impacting accounting processes? From your outside readings and research, briefly illustrate the use of a new technology in transaction processing.

Answer 1

The Profession of accounting is rapidly transforming due to emergence of new technologies and the productivity optimization available trough them.

Following are the top 5 ways technology is transforming the accounting industry:

1. Social Media: Social Media had become an essential tool for firms to engage with their current and potential clients while expanding brand reach. Social Media evolved as a tool for accountants with a valuable sales and marketing platform. It helps to create professional networks. Hence while forming an overall business strategy firms cannot ignore social media and if used effectively it can amplify all other marketing and business development efforts.

2. Specialized Accounting software: One by one , accountants are doing away with the traditional pen, ledger,and desk calculator. There now exist more efficient processing tools and specialized accounting software that allow quicker input and computation data. It is important to be precise in your computations when doing accounting work, and having all your information calculated by computer has drastically improved accuracy and reduced margin of error.Accounting software has turned the most traditional of white collar industries into a fast-paced and dynamic profession.

3. Cloud-Computing:

The momentous change that is currently sweeping across the corporate world : the cloud. Many accounting firms are now using cloud - based systems to streamline all of their information. whenever you are, whatever time of the day, all you have yo doing is log on and you will be able to immediately access your date. Having records in the digital format and on one comprehensive system, means that you will be able to more easily manage and retrieve files when needed. Moreover, using simple and ready to go cloud based systems will significantly reduce information technology and fle keeping expenses. Security, backup, and data retrieval have also benefited greatly from cloud technology.

4. Artificial Intelligence: AI and robotics is automating complex and repetitive tasks with extreme accuracy reducing operating costs and increasing efficiency. Although it is not yet developed as sophisticated as it needed to be in order to completely replace a human brain because intelligent behaviour is not one that can easily replicated, but the future is near.

5. Mobile accounting: At present we are more dependent on mobile devices than ever. There are many advantages to mobile devices that a small business can take advantage. There are mobile applications dedicated to accounting functions. These can allow invoices , add receipts, and create expense claims, among other tasks. All your data can also seamlessly backed up to the cloud. Whenever you want to access your files and information or solve an issue you can do immediately no matter where you are.

The earlier transaction processing systems were manual systems. Clerks would record transactions in a journal or on numbered multi part forms. these transactions would latter be transferred manually, to a central system of hand written records or file folders representing individual customers or suppliers. These records would set up to trigger statements to customers and checks of suppliers. However inexpensive and easy to use computer technologies are finding their way into small businesses who are still using old systems of accounting. These new technologies are used in transaction processing sub system- payroll , order entry, inventory , accounts receivable and accounts payable etc.,