New developments in information systems have bought significant changes in accounting profession, practices and processes. It has not only increased the efficiency and accuracy in accounting and has speed up the process for cumbersome and long accounting tasks, but also improved security of accounting data and increased transparency. Large organizations and multinationals are making increasing use of new information systems and technologies to carry out their accounting tasks on global basis. These information systems has led to a great degree of standardization not only among the different divisions, locations and offices of a single organization, but also on a global basis.
New technoligies and systems from various vendors such as Microsoft, Oracle for accounting have greatly reduced the time taken to prepare the financial statements and benefitted auditors and accountants to complete and submit their statements in timely manner. MIS reporting with respect to accounting has been made possible by Information systems only to take timely decisions. New payroll management systems from companies like Paychex have greatly improved payroll accounting and is a boon for accountants handling large payrolls. Similarly, sharing tools allow accountants to collaborate and merge their work with accountants of the same company located at different location.
Development of new legislations such as Sarbanes Oxley Act has been the result of increased availability of quality information systems, without which, it is impossible for the companies to remain in compliance of these legislations.
One aspect of accounting that IT seems to have impacted is security. I know I have recently had credit cards canceled because a company's database was compromised. Accountants now have to be experts in computer networking vulnerabilities as well as finance. It seems that this would force accountants to become more interdisciplinary. Certainly, they...
Please join StudyMode to read the full document