Impact of Ict on Accounting Practice in Nigeria

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The impact of ICT on accounting practice in Nigeria

CHAPTER ONE
Introduction
1.1    Background of the study
            In the recent past centuries, before the inception of Information and Communications Technology (ICT), the accountants of an organization were using a socially acceptable behavioural method of reporting accounting and economic reports, carried out during accounting year ends, the preparation of accounting records, book such as the profit and loss account, the balance sheet, cash book, cash flow statement, income and expenditure accounts.             The application of Information and Communication Technology (ICT), on accounting practice in Nigeria has become a subject of fundamental importance and concerns to all business enterprise and indeed a prerequisite for local and international competitiveness. It is obvious that the way accountants plan and take decision on what and how to provide their service in the accounting profession has been affected immensely by Information and Communication Technology (ICT). This has continued to change the manner in which accounting practice and their corporate relationships are organized worldwide and the variety of innovative device available to improve and facilitate the speed and quality service delivery.             It is obvious that the biggest impact of Information and Communication Technology (ICT) has been made on accounting; and it is the ability of companies to develop and use computerized system to track and record financial transactions properly and accurately. The recording of business transaction manually on ledgers, papers, spread sheets etc has been translated and computerized for quick and easy presentation of individual financial transaction and give report on it. (Granlund & Mouritsen, 2003).             A  vital message of the work is that researchers in accounting Information (AIS) and other areas accounting, such as financial, Auditing, Tax and managerial should work together on projects, as each party can learn a great deal from the other. By so doing, a synergistic relationship arising from such teamwork hold great potential to yield high-quality research results that can have notable impact on the accounting profession. (James E. Hunton, 2002). Shanker (2008) ascertains that the use of ICT in many organizations has assisted in reducing transactional cost, overcome the constraints of distance and have cut across geographic boundaries thereby assisting to improve coordination of activities within organizational boundaries.             It is very clear that, the computerized accounting system have improved the functionality of accounting departments by increasing the timeliness of accounting information. By improving the timeliness of financial information, accountants can prepare repots and operations analysis that gives management an accurate picture of current operations. The number of financial reports has also been improved by computerized system; cash flow statements, market shares reports and departmental profit and loss are now more accessible with computerized system.                        A Prior observation shows that computerized accounting system have internal check and balance measures to ensure that all transactions and accounts are properly balanced before the financial statements are finally prepared. It also will not allow journal entries to be out of balance when posting, ensuring that individual transactions are properly recorded.             Importantly, since the inception of Information and Communication Technology (ICT), computerized accounting system allow accountants to process large amounts of financial information and process it quickly through the accounting system. Quicker processing time for individual transactions has also lessened the amount of time needed to choose out each accounting period. Transaction that would have taken an accountant months or years to prepare would be done quickly and faster and...
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