Information Technology and Its Significance in the Accounting Profession in Today’s Modern Society

Topics: Accounting software, Information technology, Accountancy Pages: 10 (2835 words) Published: July 8, 2013
A Library Research on INFORMATION TECHNOLOGY AND ITS SIGNIFICANCE IN THE ACCOUNTING PROFESSION IN TODAY’S MODERN SOCIETY

Presented to

Elizabeth D. Kapulong, MA.Ed
UST-AMV College of Accountancy
As a partial requirement
to complete the course, English 3

Prepared by
The Tributes
Members:
Sahagun, Abbie Rose R.
Pelaez, Angelica Marie,
Cantoria, Gabrielle
Alcid, Ariane
Santiago Steffany

August 22, 2012
ABSTRACT

Table of Contents
I.THE PROBLEM AND ITS BACKGROUND4
A. Introduction4
B. Statement of the Problem5
C. Significance of the Study6
II.REVIEW OF RELATED LITERATURE AND STUDIES/CONCEPTUAL FRAMEWORK/DISCUSSION6 A. Effects of IT in the Accounting Work6
B. Different Ways in Using IT in Accounting7
C. Manual and Computerized Accounting Systems9
D. Difference between Manual and Computerized Accounting9 E. The Advantages of Manual vs. Computerized Accounting11
III.SUMMARY AND CONCLUSION12
References14

TOPIC:
INFORMATION TECHNOLOGY AND ITS SIGNIFICANCE IN THE ACCOUNTING PROFESSION IN TODAY’S MODERN SOCIETY Thesis Statement:
The use of Information Technology has positive big effects on the Accounting profession in today and accountants rely on these technologies so their works could be easier but do not fully depend on them. I. THE PROBLEM AND ITS BACKGROUND

Introduction

Accounting is a business process required to operate any organization (Henderson). It is also an important way wherein business owners and other financial professionals manage the company’s financial resources. It is also the process of recording, reporting, and analyzing the company’s financial information (Vitez, 2007). In the past, Accounting was done in a manual process wherein modern day technologies were not yet/ seldom used in businesses. But today in this 21st century, the advancement of technologies has led to the development or significant advances in the Accounting field (Vitez, 2007). The history of Accounting has begun even from the biblical times where merchants from the old days used papyri to record their money transactions. Friar Luca Pacioli is considered as the Father of Double Entry Bookkeeping System which is a system that’s all about the process of debits and credits (Vitez, 2007). Information technology (IT) is the development, implementation, and maintenance of computer hardware and software systems to organize and communicate information electronically (dictionary.com). Through the use of Information technology, the accounting field was revolutionized by giving significant advantages in terms of efficiency and timeliness. Accounting works today can now be done with more speed and accuracy through the use of Information technologies (Beticon, Garcia, Ireneo, James, 2013). Since the emergence of IT in the modern society, there are already people who have predicted that IT will contribute some significant effects in the accounting profession. According to Bob Elliot, Information Technology is changing everything. IT continues to evolve and change as modern society develops (Hollander, Denna & Cherrington 1996). IT is also transforming the ways on how businesses develop and it also changes the problems that managers are facing today (B. Elliott, cited by Hollander, Denna & Cherrington 1996). Technology continuous to change the business culture and in today's 21st century accountants will perform in new and exciting ways provided by these technologies (Hollander, Denna & Cherrington 1996). However there are also considerations regarding this transformation in the accounting field. IT will not be able to completely change the nature of accounting unless it is effectively utilized to enhance the traditional accounting process (Hollander, Denna & Cherrington 1996). As Pipkin’s idea points out, professionals who can create and add value will have a profound impact on shaping the future (p. 3, cited by Hollander Denna &...


References: Beticon, Josefina L., Garcia, Earl Jimson R., Ireneo, Shirley C. & James George R.(2013).Fundamentals of accounting. Espana, Manila: UST Publishing House.
Dickson, Deane.(2008).The effects of technology in the accounting profession.http://www.mightystudents.com/essay/Effects.Technology.Accounting.20305#.[August 3, 2012].
Francis, K
Henderson, H. J. (2012). Advantages of an automated accounting system.http://smallbusiness.chron.com/advantages-computerized-accounting-system-4912.html.[July 15, 2012].
Hollander, Denna & Cherrington.(1996).Accounting, Information Technology, and Business Solutions. Richard D. Irwin, a times mirror higer education group, Inc., company.
Shanker, S
Shanker, S. (2011). How is information technology used in accounting?.http://smallbusiness.chron.com/information-technology-used-accounting-2101.html.[July 15, 2012].
Shanker, S. (n.d.). The difference between traditional accounting & computerized accounting.http://smallbusiness.chron.com/difference-between-traditional-accounting-computerized-accounting-4021. [July 15, 2012].
Sheahan, K. (2000). What are the advantages of information technology in business?.http://smallbusiness.chron.com/advantages-information-technology-business-774.html.[July 15, 2012].
Vitez, O. (2007). Manual accounting vs. computerized accounting. http://smallbusiness.chron.com/manual-accounting-vs-computerized-accounting-4019.html.[July 15, 2012].
Vitez, O.(n.d).The relevance of accounting information.http://smallbusiness.chron.com/relevance-accounting-information-3948.html.[July 15, 2012].
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