The impact of information technology on accounting world Essay

The blow of information technology on accounting world - Essay ExampleBACKGROUND Accounting is as old as mankind and people used accounting to settle their pee-pees even when the swop system was in place. People used different methods of charge records of their transactions and claims to settle their exchanges as financial transactions. When accounting was revolutionized, people brought up several bracing ways of defy keeping which were beneficial and casual to go about. Different rules and principles came in to being when people gave rise to concepts of accounting such as accrual, matching, intermediate notification and consistency etc. With progress in this field, people adopted the use of profit and impairment articulatements as well as balance sheets to conduct their accounting but even then root records were maintained. This was a hectic exercise which required a lot of m and tracking of records to keep them streetwise with their daily transactions. This need of t ime gave rise to Information technology to come and level up the score where the requirement of time saving and keeping track of records could be maintained. Not just that, the way conventional accounting used to take place could also be revolutionized and new and easy ways of book keeping go off be brought up where standards and ease are both maintained simultaneously. BEGINNING epoch In the beginning era when information technology was introduced in the field of accounting, people started opting soft databases in place of hard copies of their records for the purpose of book keeping and tracking the transactions. This not only helped the hectic procedures of keeping the accounting records secure but also helped in the reduction of storage cost. The use of package that can calculate the results better and more accurately were used to make the calculations simpler and quick. Presentation was shifted from paper based presentation to soft copy presentation which required little tim e to make and edit the changes. New package was developed to cope up with the requirements as new standards of accounting came into play and the level on complexness was increased. Both accountants and auditors started relying on the information technology far more than the paper work as it gave them time and cost saving and thus a new era on information technology was introduced in the field of accounting as well as that of auditing. CURRENT STATE OF INFORMATION TECHNOLOGY IN ACCOUNTING The current state of information technology in the field of accounting is very modify and wide as the companies and information technology agencies have developed several ways of countering the needs and requirements of nows fighting era. As the information technology has grown up in todays era, it has persuaded the managers to implement it in their companies to manage their duties and responsibilities in a more appropriate and designed manner. The current state of accounting involves the use of following accounting software and techniques Database wariness systems Spreadsheets Audit technique software tidings processing and graphic presentations Tax assessment software Decision support systems Inventory and sales management systems Data evaluation and management software etc These are the major software that is implemented today in the field of accounting and management which have given this era of advancement a new dimension. The new era of accounting has also given rise to the in-house development of software and the companies have started their own software houses in