The Effects of Technology in the Accounting Profession

Topics: Accountant, Accountancy, Profession Pages: 4 (1069 words) Published: February 8, 2011
The effects of technology on the accounting profession are clear and undeniable. The advancements in technology have increased both the accuracy and efficiency of the accounting profession. Thus, the advancements also bring an increase to the education in the accounting profession. In order to stay competitive with today fast pace society accountants must become more and more technologically incline. The accounting profession has experienced remarkable growth and success in both the 20th and the 21st centuries.

Much of it is being written today about the advances in computer technology and how it is creating a new "information society." For example, experts have predicted that the fusion of computing and communications will fundamentally reshape our society (1) and that computers will soon be ubiquitous and woven into the fabric of our daily lives. (2)Technological developments have been transforming business and accounting for the past century and will surely continue to do so in the future. It has often been observed that computerization decreases demand for clerical and entry-level accounting workers. (3) Nevertheless, the accounting profession has continued to grow over the past two decades despite the prevalent use of computer information systems to perform everyday accounting tasks.

One can understand why this is so by referring to the work of Malone and Rockart. Both of these authors address that many of the most important uses of computers today concern the following: tracking orders, inventory, and accounts. Improvements in technology have reduced coordination costs and led to the replacement of technology for the human coordination. Though this change has discontinued many clerical jobs, it is simply the first-order effect on technological advancements. An important second-order effect has been the demand for more coordination. In many cases, the second-order effects of increased demand have overwhelmed the first-order effects of...

References: 1. Dertouzos, M.L., "Communications, Computers and Networks," Scientific American (Special Issue), 1995, 22-29.Retrieved on February 4, 2011.
2. Gates, W., The Road Ahead, Viking, 1995. Retrieved on February 4, 2011.
3. Rans, L., "The Future of the Comptroller," Armed Forces Comptroller, Spring 1987, 18-25. Retrieved on February 4, 2011.
4. Malone, T.W., and J.F. Rockart, "Computers, Networks and the Corporation," Scientific American (Special Issue), 1995, 140-147. Retrieved on February 4, 2011.
"The Future of Assurance Services; Implications for Academia," Accounting Horizons, 1994, 9(4), 118-127. Retrieved on February 4, 2011.
6. Elliott, R.K., loc. cit. and R. Roussey, "Auditing Beyond 2000," The Auditor 's Report, Winter 1996, 7. Retrieved on February 4, 2011.
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