Financial And Managerial Accounting Cengage Essay

Question:

Discuss about the Financial and Managerial Accounting Cengage.

Answer:

Introduction

This report reflects the understanding of key factors of innovation and accounting software implication for effective business functioning of organization. With the increasing ramification of economic changes and company’s complexity of running business, accounting system and software related to the same has been gaining momentum throughout the time. Accountant is the person who books, records classifies, analysis and assess the financial and accounting transactions. In this report, adamantine study has been prepared on the use of accounting software and its usages in big multinational organization. After that, critical understanding has been conducted to evaluate the pros and cons of using accounting system software in recording and analysing financial and non-financial transaction. Afterward, principles of accounting has been discussed to identify the importance of applying proper accounting frameworks. In the end of this report, accounting system software and its implication in accounting and reporting framework of organization has been determined in effective manner (Castro, 2013).This implication will reflects how accountant could enhance their learning and skills for the betterment of their career. However, in today’s world, finding suitable career oriented job has become tough. Accounting field offers various job opportunities and offers to persons to pursue their career goals and objectives in determined approach. It is observed that if accountant could learn accounting software and cloud based accounting system then it will not only increase the effectiveness of their working but also establish automation in various system of accounting system such as recording, classifying and assessing the financial transactions of business. Throughout the time, various accountants are using innovative and creative accounting software’s and tools to increase the effectiveness of their work and recording frameworks.

Current and future technologies in accounting work

Organization is accompanied by several steps and activities in which various functions are performed for accomplishing set objectives and goals. With the rapid growth in the technologies and smooth running of business, accountant plays an effective roles by using several accounting software’s for storing and recording of financial data of organization. Artificial intelligence could be defined as future without humans for discharging assigned work. There are various accounting software and artificial intelligences which are used by organizations with a view to record their data and details in organizations. However, it is evaluated that if accountants do not accompany with new technologies and accounting software (Kavanagh and Drennan, 2008). Accounting skills is not limited to the extent of recording and classifying of accounting details of organization. Accountants should understand the mortification of manual accounting entries and adoption of advanced automation is passing journal entries and recording financial transactions. (Hejazi, Halpin and Biggs, 2014).

Currently, small and medium enterprises are indulged in hiring professional accountant or certified public accountant who pass the journal entries and record the financial transactions in systematic and effective manner. After that, these information’s are further used to prepare the financial statement. Nonetheless, these types of accounting process result to various types of risk and errors such as accountants some time mistakenly book double entries, passing wrong entries and calculations errors (Hall, 2012). These types of errors and mistakes increase the inherent risk of the accounting entries of organizations and result to sharing wrong information sharing to shareholders (Treepong and Boontong, 2015). Moreover, currently, accountants are more inclined towards using manual functions and creating manual books and invoices for creating financial statement of company. However, with the changes in technologies, accountant has to be well versed with the newly introduced technologies such as indulged in learning cyber computing system, using cloud based accounting systems and learning online book entries and passing journal entries. It is further observed that if accountant could understand the key technologies terms before implementing proper accounting work then they could not only enhance the quality of accounting and reporting work of organizations but also save the cost associated with the proper accounting work (Neely, et al. 2015). Nonetheless, the main advantage of adopting accounting software is related to reducing complexity of keeping books of accounts of company and minimizing the accounting works in organizations. For instance, after adoption of cyber computing accounting software, company could directly pass journal entries and books the entries in ledgers automatically once company enter into financial transactions. However, in some of the cases when computers and artificial intelligence cannot decide in which accounts, particular entries should be passed then accountants who are well versed with accounting and cyber computing system could give their professional entries to pass complex journal entries in particular accounts. Accountant skills should not be limited to the manual work or related to the passing journal entries and recording financial transactions in the books of accounts of company (Bhasin, 2015). They needs to adapt with using new technologies and learning new cloud computing system to implement proper level of data mining process. After implementing proper level of secondary data, it is considered that traditional functioning of accountant is as important as for smooth running of business. In many developing and developed countries, tax regime, implementation of newly introduced filling requirements has forced accountants to prepare their accounting and recording frameworks as per newly introduced cloud based accounting software. Furthermore, if accountants could easily adapt with the cloud based accounting software such as XOXO, Par disco and SISA in their accounting and recording work then it will surely reduce the inherent risk and increase the efficiency of accounting working program of organizations. Furthermore, in case of implementation of proper level of software program and training and development program, accountants could easily bifurcate the accountants and establish more transparency in accounting and reporting framework of organizations (Thompson and Washington, 2015). In addition to this, if accountants do not comply with these amend accounting and reporting frameworks then it will result to destruction of compliance program of companies. However, these level of compliance program will surely increase the effectiveness of accounting and recording work. The main impact of using artificial intelligence accounting framework is related to elimination of data entry and coding functioning. If cyber computing accounting framework is adopted in organizations then it will eliminate the coding process and passing entries. However, in this case accountant and public certified charted accountant who are well versed with the new technologies and newly adopted software would have more opportunity in the accounting work. For instance, big companies who have adopted artificial intelligence and cyber computing software will be more inclined towards hiring professional accountants who could read the data and interpret the same for the better understanding of stakeholders. This newly adopted cyber computing accounting software will render various opportunities and open area which could be grasped by accountants to get job (Warren, Reeve and Duchac, 2013).

Part of artificial intelligence and technical innovation in automation of accounting work.

Accounting could be described as measure part which is related to measurement, processing and communication of financial information about economic entities such as business and organizations (Smith and Binti Puasa, 2016). However, there are several accounting software which are used by big multinational companies to reduce the complexity of measurement, processing and communication of financial information in determined approach such as XOXO, Par disco and SISA. Ideally, accountants needs to pass journal entries, then creating books of account and after that on the basis of these documents financial statement is prepared. Therefore, by using different accounting software and cloud computing system, organizations could eliminate long process of booking entries and preparing financial statement (Apostolou, et al. 2013). With the help of these accounting software, accountant who are well versed with the new cloud computing accounting software could enhance the measurement, processing and communication of financial information process of organization. With the help of this artificial intelligence and technical innovation, accountant could establish automation in their working such as passing journal entries, booking and reporting data and using online details and help stakeholders to drag information through online portals (Braun, et al. 2014).

Business organizations with the help of various artificial intelligence and accounting software are smoothing their accounting work in easy determined approach. Crucially, professional accountants are aren’t digging their heels with this level of changes and acceptance of newly introduced accounting software. It is observed that if accountants and professional persons who perform accounting and professional work do not indulge in learning phase of these accounting software will have to face various troubles and problems with the adaption of new accounting process system. However, if accountants fail to comply with these accounting software and its implications then it will be big problem for them to comply with the available program (Dunbar, Laing and Wynder, 2016).Nonetheless, with the rapid change in technologies and adoption of accounting software in organization’s value chain activities, it is observed that accountant are considering themselves as more than a worker doing ledger and accounting entries. With the help of these accounting software, they could help top management to evaluate and forecast the future demand and supply of market. They could also implement proper level of forecast errors while determining the trend of company (Knechel and Salterio, 2016). For instance, by using regression analysis and cloud computing system, an accountant could evaluate the possible changes and risk involved in financial transactions of company. However, it becomes hard for the other persons to interpret the data and entries passed by implemented artificial intelligence in multinational companies.

Accounting career after adoption of accounting system software

Accounting system software could be defined as software which is designed to transfer any accounting information to become a reliable financial report and render the report to stakeholders to make economic decision. However, adoption of these accounting system software should not be completely trusted by the organizations due to their technical errors and misinterpretation of data. Throughout the time with the increasing ramified changes in accounting software and adoption of the same by multinational companies in their accounting and reporting framework, accounting career has been gaining momentum throughout the time (Daoud and Triki, 2013). Therefore, taking advice from accountant is the utmost required point which should be undertaken by organization. In addition to this, if accountant could learn technical points in accounting system software and implication of different accounting software in value chain activities then they could be hired by big organizations to understand their critical points of data and information in determined approach. For instance, first peril of using software in organization is related to using unreal numbers. These wrong information and recording of same could occur only when company could have wrong information due to the adoption of wrong information. It is observed that when company needs to deduct the depreciation and other outstanding payment from the same year in which these have occurred as per the accrual accounting system. On the other hand, adoption of artificial intelligence showcase the entries which actually occurred in the organizations. This level of changes in accounting transactions may lead to destruction of true and fair view of organizations information while reporting the same in financial statement of organizations. Therefore, these kind of problems and issues are ideally managed by accountants and certified public charted accountant who are well versed with these innovative and creative use of accounting software application in organizations (Schorr, et al. 2013.). Ideally, these accountant could have great career in accounting and software accounting work if they pursue several course such as SAP certified course, learning XOXO accounting software and taking learning session of Par disco and SAASA software application for the better understanding of technical accounting software and assessing the automation in accounting and recording work. This level of information has shown that companies can only simplify their accounting recording frameworks by using unique accounting software (Le and Lehmann, 2016). It is further observed that companies around the globe are more inclined towards hiring those accountants who could perform their accounting task with the help of innovative accounting software. These accounting software allows accountants to use critical understanding in recording and keeping financial transactions in effective manner (James, et al. 2015).Therefore, implication of these accounting software make accountant experts in their bifurcated field. For instance, GE capital, Wesfarmers, Woolworth and Morrison plc has adopted SAP accounting framework in recording and keeping of financial transactions. Therefore, accountant who are well versed with using SAP software and its key functioning are hired in their accounting department at very good salary. In addition to this, in one accounting department where these SAP software is implemented, at least five accountant, two line manager and one head of accounting department is hired. However, with the increase in the complexity of business, these numbers are consistently increase. SAP accounting software establish automation in the identifying, classifying and recording of financial transactions. Furthermore, these SAP accounting software’s are more cloud based system which will enable accountants and other users to drag the data of company through online system mode (Bressler, 2014). These level of critical understanding on SAP will not only help accountant to create competency in their job profile but also keep them different from those of others in market. However, implementation of SAP will help accountants to minimize their manual work like passing journal entries and booking those entries in ledger. Now with the help of software like SAP, XOXO, SISA and par disco will help accountant to critically evaluate the accounting data in effective manner and they could give their professional advice to top management to take strategic decisions in determined approach (Ahadiat and Martin, 2015).

Accountant scope to join the board for strategic decisions after implementation of accounting software

If accountants are well versed with these artificial intelligence and other accounting software then they could not only evaluate the recording financial transactions for preparing financial statements but also could critically understand the trend and future results to financial transactions. These level of understanding could be used by top management of organization to take effective strategic effective decision. There are several organizations who have hired their accountant as team leader, CEO and management department such as BP Billiton, Woolworth and GE capital. Therefore, after analysing these details, it could be inferred that if accountants could learn these technical and innovative accounting software then they could create a good path to the success and join the organization board. These level of understanding on the accounting software and accountants understanding on financial management level and technical level will create a great level of fusion and will help them to create an unique image in the eyes of management department. Therefore, it could be inferred that if accountants are well versed with these accounting software then they could have platform to join the board and take strategic business decision for the betterment of organization and their own welfare at large (Gray and Hamilton, 2014).

It is evaluated that if organization adopt these accounting software then it will help companies to establish automation in their accounting and recording data. Nonetheless, using cyber computing accounting software may pose several threats such as leak of confidential information, use of non-encrypted messages and attack of ill-intentioned persons. Therefore, it may also result accountants and other professional certified public charted accountants may face problem of integrity and data privacy problems in confidential information of organization. Ethics of accountant is related to keeping all the confidential data of company save and protected (McLaney and Atrill, 2014). There are several cases in which accountants with the using of these cyber computing accounting software take the confidential information for their personal use and enter into insider trading. These insider trading is a criminal offence and may result to imposing of high amount of penalties. Therefore, it could be inferred that all the accountant should be more attached towards integrated working system and must follow the high level of transparency in their accounting work.

Impact of accounting software on the accountant lives in Australia

It is evaluated that accountants in Australia are well versed with the various accounting software and adapting themselves with the changing innovative environmental demand. There are several course such as XOXO and SAP which are gaining momentum for enhancing the skills of accountant. It is observed that if an accountant is well versed with the particular accounting software then he has deemed to created core competency in his accounting and financial work and more jobs will be offered to him (?zpeynirci, et al. 2015).

Recommendation

After evaluating all the primary and secondary data, it is observed that each and every accountant should not be restricted to only manual accounting work. They should learn the application of new accounting software to reduce the accounting and financial complexity in big organization. It is deemed that if they are well versed with accounting and financial information and also accompanied by technical skills then they could be asked by top management departments to take place in board for the effective decision making. Accountants who have learned SAP and other accounting software are more sophisticated and could easily gauge the present and past financial data to forecasted results in determined approach (Hao, and Ren, 2014).

Conclusion

It is evaluated that accountants should not only be restricted in passing manual entries and creating manual books and invoices for creating financial statement of company. However, with the changes in technologies, accountant has to be well versed with the newly introduced technologies such as indulged in learning cyber computing system, using cloud based accounting systems and learning online book entries and passing journal entries. These level of advancement in accountant skills will surely help them to take place in board of big organizations. Therefore, it could be inferred that if accountants could learn these advanced software then they could present themselves uniquely and distinguish themselves from those of others in market.

References

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