New Technological Advancement In Accounting Essay

Question:

Discuss about the New Technological Advancement In Accounting.

Answer:

Introduction

Accounting is said to be the language of business for it identifies, analyses, verifies and records the financial transactions in figures and evaluates the net profits and cash flows and brings out the true and fair view of the performance and financial position of the organization. The numbers evaluated helps in understanding the worth of the organization. Hence, it translates the performance of a business from numbers to words. Accounting is a system where all the financial transactions are timely and accurately recorded in order to have a proper understanding of an organization’s financial position in the industry. Accountants are often presumed as humourless for they are practicing such an honourable profession (Albrecht, 2011). Accountants are required not to take this image in a negative way and rather should feel proud of performing such an honourable profession where they bring out the accurate figures which is no less than science at all.

Research about current and future technology, accountant skills and ethics and career opportunities for those who pursue accounting careers

There are various qualities that are needed by a person in order to become an accountant. And accounting should have achieved advanced education or a formal certification from an educational firm which have helped it to learn the procedure of trading. The accountant should also be able to qualify for the needs that are necessary to become a CPA. He should analyze the market and then make decisions for his life about the pursuing of the degree which he wants or the job that he will be taking after the completion of his education (Andon et. al, 2015). All these factors play a very important role as they will directly affect the life of the accountant.The following report states the different type of individuals and resources needed by them in order to pursue the career as an accountant or CPA. The report is also said to include all the type of accounting degrees and the steps that may be taken in two factors by the Accountants in order to pursue the degree or course.

The business world is said to be very dynamic and hence it changes vigorously. Also, it is important for the accountant to analyze the risk, strategy, investment opportunities and the non-financial information so that proper assessment can be made using the information. The accountant and the finance professionals are the people who will be able to strategize the new information and grow their business. There are many types of accounting firms which help organizations to analyze record summarise and identify the reporting pattern of the financial information so that future decisions can be taken (Brealey et. al, 2011). The accountant and the finance professionals are no more than business advisors who help the organization to understand the accounts and then make business decisions which may be later used to develop strategies. The financing field is a mixture of organizations, individuals, and industries that use various types of methods and money resources so as to improve their revenue generation power by taking into account many risks. The finance field is all about creating value for the Investments (Choi & Meek, 2011). All investors and the managers try to identify the various type of opportunities that may be used to finance the investment and assets so that the firm can earn revenue on them by providing their money and taking some risks. Because of the vigorous and diverse nature of the business industry creation of the value of the investment has become a very challenging and difficult task for the accountants (Fields, 2011). All these challenges that are faced by the finance have made it very hard to pursue but also may provide satisfaction and rewards if understood in a proper manner.

Also, very increase demand for the accounting professionals has been improved because of the government regulations and the expanding business opportunities in the industry. Generally, the accounting and finance functions are highly related and automated. The companies have been constantly trying to adopt the paperless method of accounting and also have tried to increase the interaction with the clients with the use of cloud computing. Many of the internet channels and mobile Technologies have been used to advertise their products which will help to increase sales. This clearly states that the accountant should try to interpret the data of the business so as to make interpretation of the measures with the help of the technological methods. It is very important for the accounting and finance industries in order to assess all the career options and the changes that have been influenced in the current years so that proper analysis can be made by for the industries.

If a student pursues high level of accounting and Finance knowledge then he will be provided with practical skills that are much needed by the organizations. The study of a particular kind of course of the French to know the in and out of the systems that are related to it. The recruitment sector of the organization wants a skilful and valuable professional financial guide who can help them to maximize their profit by using a very strong work Ethic (Gold, 2009). Also, the finance manager should have proper communication skills and professional attitude so that they can gain respect, self-motivation, time management and flexibility in their job. These basic needs should not be polarized as they are very diverse in nature and the future of the firm depends on the application of these needs.

Information that surprised the group

There is a huge difference between the accountant and a certified public accountant. The public Accountants are hired as individuals by the organization in order to maintain the finance departments of the business but they are also seen lack many qualifications that are owned by a CPA (Gold,, 2009). The accountant star not provided with proper certification or license but they can perform limited tasks that may help the firm to prepare the financial statements in a proper manner. They are not allowed to conduct audit or review of the financial statements but can file tax returns if they have achieved the IRS test or are having a preparer tax identification number (Guthrie & Jones, 2012). CPA’s are accounted for the degrees and can make audit reports and also file tax returns in advance.

Generally, it has been noticed that all the accountants go to the college to earn a bachelor's degree which is not required much. The people who want to pursue their career in accounting should have proper knowledge of the industry in order to become and CPA. There have been statements which state that 150 credit hours in accounting and related areas are most needed in order to pursue accounting. The accounting degree programs have become very common and popular among the students throughout the United States and also distance learning has been seen in the accounting industry (Henry & Hicks, 2015). Also, all the students should confirm that the program is fully effective for them in order to reach their goals to pursue this course.

Almost all the Accountants or CPA are said to specialize in one or more of the fields like the public accounting or corporate or business accounting. There are also many other fields to specialize in like the environmental accounting managerial accounting taxation accounting and internal auditing. This type of specialist is helping us to decide the accounting degree which would be earned by the students (Henry & Hicks, 2015). The improvement in the Technology hasn’t Accountants a lot in order to assess their client’s operations. The most basic 3 link pins for the future accounting practices are:

  1. Cloud computing: it has become very popular in the present situation as it helps to back up any sort of data on the online storage facilities. Also the power that was exercised by the cloud computing have improved rustically with the change in technology is making it much more efficient for use. It allows the people to have access to their data in any time or place they want. This may be helpful for the Accountants to review the daily operations of an organization and keep real-time insights into the performance of the firm (Guthrie & Jones, 2012).
  2. Automated market solutions: it is very important for the firm to analyse the data of customers so as to make or create market opportunities for the organisation. A new technological advancement has improved the advertisement facility that has been provided to the organisations. These new and innovative measures can be used to exercise different type of innovative ways on the clients in a cost-effective way with me for that help to improve the sales. This type of solution helps to save the time of organisation does helping it to increase the number of lines because of the increasing referrals.
  3. Data Analytics: one of the changes that have been very valuable for the technological world is the improvement of Data Analytics. The old method of Collection of data and recording them by the use of balance sheet income statements and cash flow statements will always be important but the dynamic city of the business environment will require much more detailed analysis which will help the clients to give a proper view of the organisations working strategies (Murphy, 2015). These Data Analytics can be used in order to identify different type of risks and change that may prevail in the environment and thus make wealthy and actionable decisions.

The accountant who provides all the information to the clients is said to be faithful and maintain good relations with them.

New Options, New Opportunities

Accounting is always a hardship but the one that has the example of Uber and is ready to take the risk in order to build a strong communicative and interactive bong with the customers can attain it from some serious advisory steps to be taken. The example of Uber has been useful for innovative ideas and strategic plan to nurture in the market which is often disrupted. This plan has been famous among the ones who want their business to flourish intelligently (Murphy, 2015).

The mixing of technology with the business has availed the market to shift from compliance- dependent to reliance dependent which can be seen as a fact in which the accountants can enhance the delivery of work in association with the use of technology. Mobility, 24/7 access, transparency to customer data and other functions have been made much easier and available to accountants after the start of technological use in this field which will be a boon to the customers as well.

The technological use has enabled the accountants to stay connected with the databases and to access the dashboard of the company and the customers in quick time which will strengthen the bonding between the customer and the accountant. Virtual management accounting services, financial advisory services, strategic advice and experience segments are some of the services that have started to get offered to customers after the use of proper technology.

It must also be seen that technology is not all that we need and the role of the accountants and the skills that the accountant possesses is the main key which decides the situation result after proper interaction and attraction from the customer. The accountant must keep their offerings in the front row to attract the customers and make them believe and see the extra services that they can offer which will benefit the customer. These will be a boon for both the accountant and their customers.

It is important that the companies become much more open to isolated operation now. It is seen that the employees nowadays want a free atmosphere and flexible working environment. For associating with the above steps it is necessary that the CPA firms and the accounting officials lay their contribution. The demand of the hour is a type of working which can be accessed and maintained from anywhere as per the accounting laws.

Disrupted or diversified core along with virtual offices will have an increment in number. This describes the fact that more work stress will be put on the system management. This technologically related work will be a boon to the management as it will give an overview of the projects and the venture results that the company is going to get in the upcoming years. Data will be seen to accumulate more and more and the core of the system will be more deflected towards the maintenance of the data applications.

The Technology Guessing Game

There is no intact future if seen from the technological view related to it. The technological applications have the artificial intelligence inbuilt to their core with AI taking over the technological industry. With a more human-like brain and sense in the future, technology can have the upper hand in the calculation of taxes and managing financial statements and other accounts of the company.

Blockchain technology has already been implemented in the accounting industry with an impressive performance. A system, that itself manages the accounts and cannot be altered by one person is very advantageous in nature according to the present circumstances of the market with a huge reduction in loopholes and stress from the management.

Use of technology in the field of accounts has helped the companies to reach new heights. The technology has been a boon to both the accounting officials and the customers because they are benefitted with them as it eases the work of data evaluation, maintained and stored. The company can flourish well and fine by the use of such technology.

The advantages of technology have been true to the market since they have started and the working skills of the accountants have also been improves as they are able to deliver more with the use of superior technology. The question that arises is that what are the systems that have made the work of the accountants so much easy? Here are the answers to the questions:

  • Cloud Computing – this type of software enables the stored data to be accessed whenever and wherever one wants. This also proves to be a boon to the accountants as they can maintain the databases from anywhere without any hindrance and interact with their clients too. This provides a longer span to interact and flourish the company with proper plans and strategies.
  • Innovations in Tax Software – the technology use has made the operation of business much safer than before which is the need of the hour. Raymond Cheng, Council member of HKICPA states that “An understanding of new accounting software and other business and financial models will be necessary if practicing accountants are to effectively conduct audits and discharge their responsibilities. Continuing professional development and education in this area will be necessary for auditors.”
  • Mobile Accounting – Mobile is another facility which is used by the accounts everywhere to access the databases. It can be seen as the interaction pull between the acc8untants and the customers. Companies like Xero have moved the accounting systems to the mobile facility which can be accessed from anywhere. Firms can settle, send invoices, add receipts and create expense claims by using the mobile phones.
  • OCR Technology – this technology helps the accountants to scanned paper documents, PDF files, images presented from digital camera into type of data that is alterable and can be searched on the net. These types of converted file are easy to be transferable, storable and arrangeable in the most effective way possible. The use of this technology has been a boon to the accountants as the manual storage of the receipts will be fully eliminated and this will enhance the working of the company with much more space available (Pan & Seow, 2016).
  • Social Media – social media is part of the daily operations of the company which can be seen as the best mode of interaction between the officials and their customers. Many leaders say that the evolvement of the social media is on the horizon in the next upcoming years as it will expand more and more and be enhanced which much more abilities. There are still many companies in the market which have their belief intact in the traditional system but they should also learn the strength and the advantages of social media which can be effective on their business. Social media must form a part of the daily plans and strategies of the company which can be a boon to the company in the present and the upcoming time and will and help the business to dominate in the market (Pan & Seow, 2016)

Accounting officials must cope up with the enhancement of technology in their field if they want to safeguard their jobs in the upcoming years and in present time. Developing the knowledge with the enhancement of the technology and opting and adapting to the new accounting software is the need of the hour (Sharpe, 2016)

Group Opinion

Accounting is the essence of every organization. It is the process where financial transactions pertaining to business activities are systematically identified, recorded, measured, classified and communicated to operate a successful business.

It is accepted by almost all the finance/marketing/strategy professionals worldwide that the absence of accounting is an obstacle for an organization in its course of business operations. Lack of accounting knowledge should be overcome so as to function better and have future prospects. In the coming years, with the availability of more data, it will be noticed that accounting will gain its significance in the entities. Accounting will be performed as it was performed earlier but will be impacted by the infusion and continuous evolution of information technology.

Accounting it the most legitimate and significant reason behind every successful organization. Financial transactions pertaining to debts, profits, losses, and credits are recorded by means of accounting. The affairs of business are determined and evaluated in figures which can later be constructed into words. Significant information about the growth of the business, the functioning of the business, profit employment, cash flows, etc can be ascertained through accounting.

Currently, in the USA, the economic system is revolutionizing every single day. It is seen that the labor-oriented jobs are reducing in number as these are being replaced by general management jobs that are better paid. In order to grow in a company and reach the managerial position, one must have an in-depth understanding of the accounting. Also, to start own business or to become an entrepreneur it is required for an individual to have an understanding of the concept of accounting (Sharpe, 2016). It is seen in the USA that the personnel that is employed in the top-management are unaware of the basic principles of accounting. Whenever there is a discussion on accounting such person fails to give legitimate reactions and suggestions. And it is shocking to see such personnel are employed at a position where they are expected to formulate decision-making, hike sales and grow organizational profits.

Understanding accounting is no less than an art. Not all can master it. It has a learning graph and the art needs to be practiced on a daily basis so as to perfectly master it and apply as and when required. It is easy for left-brain thinkers to be familiar and easy with figures, apply logical reasoning and solve analytical problems while the ones who are right-brain thinkers are better at creativity, imaginations and passionate about activities. Whatever category one fits into, the fact is that anyone can learn and master the accounting skills provided there are inputs applied as regular efforts and practice. Whatever may be the size of the corporate the basic principles of accounting are applied same to all.

Accounting: Big Picture and Stats

Personnel who are legitimately trained and skilled in accountancy, bookkeeping and auditing may find accounting really easy. Such personnel is not less than two million in numbers. The lesser trained and inexperienced ones might find number-crunching real time difficult (Suddaby et. al, 2015).

The process of accounting gets simplified and easier to understand when the most general accounting procedures are broken down. It is required for the aspirant accountants to have the necessary accounting skills so as to convey accurate numbers and findings to the managers and clients of an organization. They are also required to remain updated with the policies concerned with such financial accounting procedures.

Ethics and digital technology are also given emphasis nowadays in accounting. The accounting practices evolved in the form of recording handwritten transactions in the ledgers which are now recorded using computers and other technologies. Traditional accounting was restricted to bookkeeping and compliance governance which is now extended to ascertaining findings in figures, decision making, formulation of required business strategies and financial forecasting (Suddaby et. al, 2015). The infusion of information and digital technology in the world of accounting is not the only talked about the area as it is seen nowadays that the accountants are enthusiastic about procuring advanced certifications in the accounting field. The accountants are focussing more on their skills and knowledge so as to survive the competition and ensure quality work. The ultimate agenda of an accountant should always be to indicate and communicate the earnings and funds for an entrepreneur or organization. The art of accounting is not just confined to summarising, analyzing, recording, classifying and communicating transactions that are cash basis but also transactions that are accrual basis. The work of accountants has now been extended to financial planning, controlling the operations and functions of a fund portfolio for it represents the organizational financial performance as a whole.

Conclusion

It is seen that there is a rapid revolution in the accounting industry on account of infusion and implementation of digital technologies. Unlike earlier times when the accountants were loaded with task-oriented projects, it is seen that there work is now eased and super simplified with the infusion of digital technologies that have helped them to evolve as a business advisor.

The job of an accountant has become simpler with the integration of technology with accounting. The accountants are now able to evaluate statistical values. It is easier for the accountants to interpret efficient and effective data. The accountants are not just required to be skilled and knowledgeable but also updated and comfortable with the newer technologies for the most of tasks are to be accomplished using digital devices, platforms, and media. There are many ways in which technology is revolutionizing the accounting industry.

References

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