How Technology Has Changed the Accounting Profession

1. Introduction Thirty years ago, most financial accounting was done manually, leading to a great deal of paperwork. Currently, most accounting information is recorded via computers and wide area networks (Journal of Accountancy, 1994a). Technology has certainly changed the face of accounting over the years. While it is unclear whether technology’s impact on accounting has been positive or negative, it is clear that technology has drastically changed the accounting profession. Often a technological advance may be an asset to a business, but a liability to the firm’s accountant. For example, information can be provided in a timely and more accurate manner, but at the price of confidentiality. Some of the impacts of technology are neither†¦show more content†¦Expert systems and advanced accounting software that have recently been designed could be perhaps one of the greatest assets of technology to accountants. Users of this recent development in technology range from the smalle st proprietorships to the largest of corporations. Expert systems are a type of artificial intelligence that assists accountants in their decision-making (Journal of Accountancy, 1996). These systems are especially useful in both auditing and tax decision-making but can be developed to aid users in many different areas including inventory control and financial statement preparation ( Pincus and Accounting). A software company called Intuit recently developed a program called Quicken 4 for Windows. This software provides accountants with on-line documentation, multimedia tutorials, and even interactive advice from financial experts ( Byte, 1995). Visual Accountmate developed a program called Manufactures’ Inventory that posts the goods to the appropriate accounts as the inventories move through the manufacturing process. For the small privately owned business, Windows 95 has developed a program that helps accountants to develop financial statements by presenting a series of sp ecific questions ( Accounting Technology, 1997). These are just a few examples of how expert systems and accounting softwareShow MoreRelatedEffects of Technology on Accounting Essay713 Words   |  3 PagesEffects Of technology On the Accounting Profession The accounting profession has experienced many different changes and as well as a tremendous amount of growth over the past century. (Schaefer, 1998) Its unfortunate that due to unethical accounting practices there has been an increased need for advanced technology of accounting systems in order to better monitor what is going on with organizations. 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