The Effects of Technology on the Accounting Profession

The Effects of Technology on the Accounting Profession

            Technology has changed and molded most aspects of human existence, from the creation of the wheel and printing press to the computer and World Wide Web.  Today’s technology has impacted traditional profession, such as accounting, changing an accountant’s role in the workplace and empowering them with powerful processing and analyzing tools.

Accounting information systems, known as AIS’s, are electronic or computerized systems that are designed to maintain accounting records for businesses (Wikipedia, 2008).  AIS’s stores information related to the financial practices of a company, including accounts receivables, accounts payables. The purpose of AIS’s is to make data more accessible to both internal and external users. Information is easily stored and transmitted; time is reduced in generating and tracking down reports.  Information can now be sent anywhere in the world at the click of a mouse!

The use of computers has changed accounting in many ways.  Before computers accounting was entirely paper based.  There was a fairly standard way of performing accounting duties that translated from one company or department to another.  With the introduction of computers and the many accounting programs, the landscape of accounting has changed dramatically.  Instead of simple paper and pencil record keeping and using a filing cabinet for safe storage, companies have had to focus on developing compressive AIS’s.  AIS’s have five basic phases used to developing them: planning, analysis, design, implementation, and support (Accounting Information Systems, 2001).