Globalizations Effect on Accounting Industry
How The Changing World Will Change The Accounting World
The public accounting industry, due to rapid changes in the global landscape, will grow internationally while remaining flat domestically. This is due to the two major facets of globalization and its effect on the industry. These facets are the globalization of markets and the globalization of production. The globalization of markets is the creation of one world-wide marketplace due to deregulation of international trade. This gives accounting firms the ability to sell their services anywhere in the world. The globalization of production is the ability to take advantage of goods and services, sourced from different nations. This allows accounting firms to outsource their services to areas where labor is less expensive, reducing costs and thus increasing profitability. The public accounting sector is affected by both facets differently. Furthermore, the global landscape has changed more rapidly over the last twenty five years than any other time in history. This is due to a combination of two major vehicles; technological advances and regulatory reform. The impact of these new technologies and regulations has rewritten the role of the traditional accountant. Traditionally accountants were used mainly for financial data entry; the new accountant is a consultant, an auditor and an advisor as the industry moves away from financial accounting and towards managerial accounting.
Globalization has occurred more rapidly in the last thirty years than any other time in history for two very distinct reasons, the advancement of technology coupled with government deregulation of markets. Technological advances effecting the globalization of the accounting industry include improvements in the travel industry, the advent of the internet and the rise of cellular technology. These advances have improved record keeping abilities, created the ability to instantly share financial information and the increased
The public accounting industry, due to rapid changes in the global landscape, will grow internationally while remaining flat domestically. This is due to the two major facets of globalization and its effect on the industry. These facets are the globalization of markets and the globalization of production. The globalization of markets is the creation of one world-wide marketplace due to deregulation of international trade. This gives accounting firms the ability to sell their services anywhere in the world. The globalization of production is the ability to take advantage of goods and services, sourced from different nations. This allows accounting firms to outsource their services to areas where labor is less expensive, reducing costs and thus increasing profitability. The public accounting sector is affected by both facets differently. Furthermore, the global landscape has changed more rapidly over the last twenty five years than any other time in history. This is due to a combination of two major vehicles; technological advances and regulatory reform. The impact of these new technologies and regulations has rewritten the role of the traditional accountant. Traditionally accountants were used mainly for financial data entry; the new accountant is a consultant, an auditor and an advisor as the industry moves away from financial accounting and towards managerial accounting.
Globalization has occurred more rapidly in the last thirty years than any other time in history for two very distinct reasons, the advancement of technology coupled with government deregulation of markets. Technological advances effecting the globalization of the accounting industry include improvements in the travel industry, the advent of the internet and the rise of cellular technology. These advances have improved record keeping abilities, created the ability to instantly share financial information and the increased
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