Information technology has revolutionized the way accounting is done. Long gone is the time of manually entering numbers into big bulky ledgers and journal books. Technology has also taken away the stigma associated with accountants. They have long been considered “bean counters” and introverts. This is no longer the case since leaning over ledgers and adding numbers on a calculator all day is a thing of the past. People skills have emerged as an important part of the accounting profession because of the change in technology.
The use of accounting software programs has provided many benefits to the companies that utilize them. It has allowed for simpler processes, automation of tasks, fewer errors and an audit trail. Other important components of utilizing a software program are the development of faster financial reporting and centralized accounting operations.
There are many computerized accounting information systems available depending on a company or individual’s needs and the amount of dollars they are willing too invest. With these software programs the need for formally trained accountants is becoming less of a requirement. A downside to these programs can be the elimination of jobs, particularly entry level, because certain tasks can be handled behind the scenes within the computer programs.
SAP and Oracle are two main systems being utilized by larger corporations. They are fully integrated software packages that allow companies to select how data will be input and how the data links into the accounting function use. The programs also have the ability to be tailored to meet specific company needs. The development of these programs has taken the monthly accounting close from weeks to just a few days. Quarterly reporting and year end processing has been reduced from months to just a few weeks. This has allowed for more accurate information and a faster presentation of the financial information.
Quickbooks has changed the