The Effects of Technology on the Accounting Profession Essay

The Effects of Technology on the Accounting Profession - Essay Example Technologies of inter connectivity has led a high degree of cooperation in exchange of data. Accounting soft wares have brought revolution in accounting and finalization of financial statements. Every time a transaction is proceed into accounting software all accounting activities till preparation of financial statements are performed by the software. Financial statements are available for analysis with every transaction processed. Non- customized soft wares are available for general accounting but large businesses and even some SMEs, like the organization I am associated with, get accounting software customized as per their requirements. Certain areas of core accounting have been immensely affected by Information Technology like preparation of payroll records, calculations and withholding of tax deductions, filing of payroll and tax returns, invoicing, tracking accounts receivables, on line bank transfers, and many others. Information technology has evolved such B2B (business to business) systems that work effectively despite complexities involved. In fact my organization has made such a system as part of Enterprise Resource Planning (ERP) system. Bills are generated and payments are electronically processed through EBPP (Electronic Billing Presentation and Payment) systems, and accounting of such transactions is facilitated as soon as the bills are generated. One can imagine the impact of speed, accuracy, and savings affected by EBPP system on the accounting systems. Internet has opened lot of opportunities for small accounting firms through business processing operations. Accounting out sourcing is the invention of technological developments that has helped both CPA professional who is providing the work of his client by outsourcing it to other accounting professional who is receiving the outsourced assignment. The point is that at both ends, the provider and the