Reflection Term Paper on Accounting Information Technology
Introduction
In the corporate world, accounting is considered as the crucial part of internal operations that makes an emphasis in this kind of profession. Accounting became an important part of the operation because of the financial and operating information and allows the executives or the business leaders to make a sound decision toward their steps in making the business successful. Most people, in this generation, are affected by the computer-based systems. Therefore, the involvement of the technology in any profession created different perceptions. In accounting, the computation of the resources and information such as the business problems are assumed to be more effective on the business’s focus on the business community.
What is Accounting Information Technology?
Basically, the accounting is considered as the language of business which deals with producing, communicating, and interpreting the business’s information about is performance, operation, and the status of its finances. The accounting finds its place in different field and created a great impact and usefulness in the marketing, entrepreneurship, and information technology. The accounting information technology is another service that the accounting can offer. An accountant who has an expertise in the use of the IT tools, such as advanced computer systems, can make a great difference in the traditional accounting. It is ideal in the era where the growth of information technology is enormously strong. In the view of the corporate world, the information technology can open job opportunities and implementation of the advanced systems that are appropriate in the company’s specialized needs. Therefore, the accountants that are skilled in using the software are highly valued ( 2007). However, there are contradicting issues about the relationship of the accounting information technologies in the business settings.
Pros
With the assistance of the information technology in the accounting profession, he financial and nonfinancial information can be culled from the past up to present performance or condition of the business because it can store the data based on the year and therefore, provide the assurance of the intelligence in the financial context of the business. Through the help of the information technology, the knowledge or financial information has more assurance of the accuracy, assess the risk, or measure the performance in definite time and can be shared, passed, or delivered into many different people in the corporation. Also, there is an open opportunity is the small and mid-size public accounting firms when they applied the idea of the accounting information technology in their system. They can use the different benefits it may bring to their business’s expansion and become more competitive against the companies that are still trapped in the traditional accounting services ( 2007). Through the benefits it can offer, there will be a new emergence in the industry to take the process be part of their internal procedure and can craft a positive image in the mind of the accounting students to incorporate their learning with the information technology.
Cons
While there are many advantages in the utilization of the information in accounting profession, the company’s information technology cannot hide the additional resources and expenses in dealing with the problems that may arise in the incompatibilities of their own version of software. There are intricate procedures included such as the coding process which can accommodate the burden of the errors upon the interpretation. Through the attestation of the companies, they observed that there is a great impact of the high costs incurred in the completion of the software and they are often comes in different forms that are based on the need for accurate auditing, or reduction of the timeliness in releasing or producing the data needed by the corporate. Through the high costs or value of the software, the people may not add much importance of value in the process of it (2004).
Analysis and Conclusion
It is appropriate to office personnel such as the finance manager to have an accounting background but in many cases, the business leaders have a little knowledge regarding on the IT issues. In this case, the possibility of the application of the information technology in the accounting profession is very slim. And many companies place the responsibility of investment and IT strategy in the hands of an expert. As the business starts to performs, the business leaders will realize the different risk involved in IT projects if they are not managed properly and project failures are the most common end of their innovation. These risks and negative possibilities are the things that every company is trying to avoid. But in understanding the internal control and underlying systems between the accounting profession and the information technology services, all of the doubts will be banish (2006).
There are possibilities to avoid the fraud in the business setting through the monitoring process that can adopt in the idea of IT in accounting. The strengths and weaknesses of the information system are based on the analysis and design of the solutions that is suitable to the corporate business problems. The only thing that is very vital in the process is the skills and knowledge of the person, so that he or she can manage the overall accounting information technology in the business settings.
Credit:ivythesis.typepad.com
0 comments:
Post a Comment