Effects of Technology on the Accounting Profession

Topics: Balanced scorecard, Accounting software, Strategic management Pages: 3 (1022 words) Published: August 10, 2014
Effects of Technology on the Accounting Profession
Effects of Technology on the Accounting Profession
University of Phoenix
ACC/340 Accounting Information Systems
Effects of Technology on the Accounting Profession
Businesses have become more competitive, consumers are more informed, and technology has changed the way the world communicates. Information technology (IT) and the resulting ‘information age’ are continuously impacting every facet of accounting. (Bagranoff, Simkin, & Strand-Norman, 2006) This paper will examine how accounting information systems (AIS) are bringing about changes within the accounting profession. Additionally, a variety of technologies and how they affect accounting practices at Exclusively Yours Salon will be discussed. Accounting Information Systems and the Accounting Profession Today’s business environment is marked by increased competition and the need for better and faster information for decision making. According to Bagranoff, Simkin, and Strand-Norman, 2006: Because IT now captures transactions, AISs can produce financial statements almost in real time. Of course, some of the adjustments that accountants must make to the records are not done minute-by-minute, but a business can certainly track sales and many of its expenses continually. (p. 15) Additionally, large amounts of accounting records are increasingly presented only in an electronic fashion. Companies are reporting their financial outcome quarterly and an increasing number of companies are transferring their financial records to a public network. (Shafer, 1998) For several reasons, companies are facing growing competition. In order to remain competitive, companies must have techniques to control costs associated with its various operating activities. According to Bagranoff, 2006, “One example of AIS in the area of cost accounting is an activity-based costing (ABC) system.” (p. 16) Traditionally, overhead rates were applied to production arbitrarily. As technology...
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