Impact of Information Technology On Accounting Profession

Posted: August 27th, 2021

Impact of Information Technology On Accounting Profession

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Impact of Information Technology (IT) on the Accounting Profession

IT has made significant contributions to the improvement and development of business. Companies can now increase efficiency and profitability through strengthened communication systems (Karajovic, Kim, & Laskowski, 2019). Equally, IT supports practical cooperation and communication between companies and their customers. Unlike in the past, when IT was not widespread and used in society, business people could not speed up their work and reduce efficiency. According to Mohammad(2020), accounting society needs to improve their skills and services as IT advances. For instance, with the advent of sophisticated accounting software, it is no longer necessary to keep a massive ledger in the office. Therefore, advancement in IT has created dramatic changes in the accounting field.

Accountants must use all types of technology associated with their profession. These include but are not limited to the Turbo Tax program (Karajovic, Kim, & Laskowski, 2019). The software applies tax advisers and auditors as well. For example, both auditors and tax advisors must use electronic communications to send tax documents to their company’s financial services. Thus, IT in accounting has influenced the way accountants can access detailed information, hence making their work comfortable.

Impacts of IT on accounting is majorly felt in the accounting systems of a firm. The high demands for speed, accuracy, and security in the accounting profession have resulted in using the latest technology (Kumar,2018). As such, the nature of accounting is changing daily; thus, accountants must keep up with the pace to contribute more(Kumar, 2018). According to Mohammad(2020), effectiveness and efficiency related to IT adoption are essential for accounting societies to improve their performance(Khan, Al Aboud & Faisal,2018). Hence, this is mainly realized in the accuracy and speed at which information is generated. Technology has made it possible to generate accounting information.

Further, mobile and cloud technologies are at the forefront of the accounting profession that has reshaped taxation and accounting services. According to Kumar (2018), customer services have greatly improved following IT adoption in accounting. Likewise, this has tremendously translated to the adoption of improved technological approaches that drive productivity, hence profitability. However, alluding to the same, Mohammad(2020) believes that many companies in this accounting profession have had trouble using the technology effectively. Therefore, the provision of customer service within the accounting sector influences the decision to invest in new technologies such as mobile, enterprise resource planning (ERP), and Cloud solutions.

Accounting professionals need to experience technological change. Their goal is to remain in a highly competitive business and continue to adhere to accounting rules and regulations (Khan, Al Aboud, &Faisal, 2018). Improved software will help in data collection and report generation. According to Khan, Al Aboud, and Faisal(2018), ERP has replaced outdated information systems. Thus, the development of ambiguity in this technology might make accountants lazy and imprecise to work with them by installing debugging software.

 In summary, IT has dramatically changed accounting services for the past decade and will continue to make some changes in the future. Accounting society’s roles and expectations in an organization are higher and essential than other departments and sectors. Therefore, every company needs accounting as a financial business partner and for value creation.

References

Karajovic, M., Kim, H. M., & Laskowski, M. (2019). Thinking outside the block: Projected phases of blockchain integration in the accounting industry. Australian Accounting Review, 29(2), 319-330.

Khan, A. K., Al Aboud, O. A., & Faisal, S. M. (2018). An Empirical Study of Technological Innovations in the Field of Accounting-Boon or Bane. Business and Management Studies, 4(1), 51-58.

Kumar, K. (2018). Impact of Digitalization in Finance & Accounting. Journal of Accounting, Finance & Marketing Technology, 2(2), 1-9.

Mohammad, S. J., Hamad, A. K., Borgi, H., Thu, P. A., Sial, M. S., & Alhadidi, A. A. (2020). How Artificial Intelligence Changes the Future of Accounting Industry. International Journal of Economics & Business Administration (IJEBA), 8(3), 478-488.