WORKING OF COMPUTER

ACCOUNTING

Introduction
Accounting is at the heart of business. It is an information system that measures and
communicates information about the organization's economic activities. Its objective is to
help the decision-makers (managers, executives, investors, small-business owners, etc.) to
make better decisions. There is a high demand for accounting technicians both in
manufacturing and service-oriented firms in the context of both large and small
organizations.
The Accounting Principles and Related Computer Applications program has been designed to
prepare graduates for immediate employment in the field of Accounting, particularly with the
use of computerized accounting systems.

Computer accounting program

A degree in accounting can be the start of an exciting and lucrative career. Since all
businesses need accountants, your career options are virtually limitless. Those who enjoy
accounting include those who are detail oriented, organized, like working with numbers and
computers, and enjoy preparing and analyzing financial data. Career opportunities include:
Staff Accountant, Assistant Accountant, or Full-charge Bookkeeper
Payroll Accountant
Accounts Receivable Clerk or Accounts Payable Clerk
Tax Preparer
Financial Analyst
The Computer Accounting program provides students with training in manual and
computerized accounting systems. Students are educated in the concepts of accounting
principles, managerial accounting, intermediate accounting, payroll, taxation, and auditing.
Hands-on experience is gained in the use of accounting systems software. Students also
receive practical instruction in Microsoft Office business applications with extended
emphasis on Excel and Access.
Scheduling of classes is flexible with courses offered on and off campus during the day,
evening and Web. Computer classes are relatively small in size and can provide students with
individual attention. It is recommended that students have a computer, but computers are
available at various locations on campus for use outside of class.
The mission of the Computer Accounting program is to provide a quality education in
computerized accounting that will enable students to succeed in a career now and in the
future.

OLD METHODS AND MACHINES USED IN

ACCOUNTING
The most common method of keeping the financial records of a company was manually. A
bookkeeper kept the journals, the accounts receivable, the accounts payable and the ledgers in
his best possible penmanship. In later years, an accounting machine, which was capable of
performing normal bookkeeping functions, such as tabulating in vertical columns, performing
arithmetic functions, and typing horizontal rows was used. The billing machine, which was
designed to typewrite names, addresses, and descriptions, to multiply and extend, to compute
discounts, and to add net total, posting the requisite data to the proper accounts, and so to
prepare a customer’s bill automatically once the operator has entered the necessary
information, was used. Early accounting machines were marvels of mechanical complexity,
often combining a typewriter and various kinds of calculator elements. The refinements in
speed and capacity made possible by advances in electronics and operating complexity of
these machines. Many of the newer “generations” of accounting machines are operated by a
computer to which they are permanently connected.
USE OF COMPUTERS IN ACCOUNTING
Because of the minute by minute change in finances, accurate record keeping is critical.
Computerizing a business’s general ledger, payroll, and other accounting tasks increases
office efficiency. With a computer, you can request and receive an in house balance sheet, an
income statement, or other accounting reports at a moment’s notice. While keeping your
checkbook on a computer may not be practical, computers are great for handling complex
home financial records. You can get statements on net worth and year’s tax deductible
expenses within minutes.

A. Spreadsheets
Electronic spreadsheets allow you to do anything that you would normally do with a
calculator, pencil and columnar scratch pad. Spreadsheets were primarily designed for
managers who in the process of planning must do “what if” calculations. Due to their
flexibility, electronic spreadsheets have found their way into small businesses and, to a lesser
extent to homes. A typical integrated double entry accounting system will contain some or all
of the following components: accounts receivable, accounts payable, general ledger,
inventory, order entry, payroll, time, and billing.

It takes its name from the accountant’s spreadsheet—a sheet of paper with rules for rows and
columns—on which such work was usually done. Spreadsheet programs are much faster,
more accurate, and easier to use than traditional accounting techniques. The programs are
widely used on personal computers for keeping sales, expense and inventory records, and for
budgeting and forecasting future sales and expenses. As a result of these and many other
applications, computer spreadsheets have become the most important of all software tools for
modern businesses.
Early programs such as VisiCalc provided 254 rows and 63 columns for entering data and
formulas for calculations. Some modern programs for computers with large memories
provide thousands of rows and hundreds of columns. VisiCalc was introduced by Robert
Frankston, a young computer programmer, and Dan Bricklin, a Harvard Business School
student who was looking for a way to use the power of a computer to simplify complex time-
consuming financial analyses. VisiCalc proved so useful in such applications that it provided
an entry for personal computers into the business world. In 1980, the Sorcim Corporation
introduced SuperCalc, a similar spreadsheet program for personal computers using the CPM
operating system.
A new generation of computer software for business began with integrated spreadsheet
programs, which can be used to prepare spreadsheets, create graphs, and manage data. In
such programs, for example, it is easy to display spreadsheet data in the form of a graph or to
transfer data from a data base to a spreadsheet. One of the first such programs was Lotus 1-2-
3, an immediate success following its introduction in 1983.
In the third generation of integrated business software, spreadsheet, graphics, and data
management capabilities were supplemented by word processing and communications
capabilities. With such comprehensive programs, it became possible to create multiple
windows on the computer display. Each window could contain a different application—a
graph in one, a spreadsheet in another, and word processing in a third. The window
capabilities of integrated programs such as Symphony and Framework make it easy, for
example, to transfer a spreadsheet or a data-base report to word processing for styling and
formatting before printing.
In testing the use of a spreadsheet, I did a manual spreadsheet using mileage information.
This spreadsheet took me 12 minutes to set up and 18 minutes to perform the computations.
(See Appendix A) It took another person, who is familiar with the software, a total of 30
seconds to load the spreadsheet; 4 minutes to input the information; and less than one second
for it to be tabulated and printed. (See Appendix B) This was a very simple program. Imagine
if it were extremely involved. I have observed people spending hours trying to find an error
in a spreadsheet, because the columns would not rationalize. This could not happen with a
computer. However, neither one of these is useful if incorrect information is put into them.
B. General Ledger
General Ledger is a labor saving device for the preparation of financial statements and for
establishing multiple income and cost entries.

C. Accounts Receivable
Accounts receivable, when computerized, can get your bills out the same day you’ve
performed a service. An accounts receivable module prepares invoices and customer
accounts, adds credit charges where appropriate, handles incoming payments, flags your
attention to customers that are delinquent, and produces dunning notices. It allows you to
have daily cash control. You get out the bills on time, yet you avoid errors such as billing a
customer twice for the same item. The further advantage is that debits and credits are posted
automatically to the general ledger, order entry, and in some instances inventory, once they
are entered in accounts receivable.

D. Accounts Payable
Accounts payable, when computerized, will provide for purchase order control, invoice
processing, payment selection and handling, check writing and control, cash-requirements,
forecasting, and Form 1099 preparation. It will also double-check the accuracy of the
vendor’s invoice, and some software systems will cross-check it against the purchase order
and the inventory module.
E. Inventory Control
Inventory Control module has multiple functions, including tracking inventory for both
costing and tax purposes, controlling purchasing (and the overall level of expenditure) and
minimizing the investment in inventory (and subsequent loss of cash flow). The payroll
module prepares and prints payroll checks, including all itemized deductions. It is integrated
with the general ledger so you automatically set aside the correct amount for FICA and
withholding.

F. Point of Sale
Point of sale module captures all sales information at (or in place of) the cash register,
including salesperson, date, customer, credit information, items, and quantity sold. It can
produce sales slips or sales invoices, plus it reports on items, customer, and salesperson
activity.

G. Purchasing and Receiving

Purchasing and receiving module can represent an invaluable addition. It can generate
purchase orders and track their fulfillment. You can find out which vendors are delivering on
time and saving you the expense of having to follow up on partial and incomplete orders.

H. Time and Billing Module

Time and billing module reduces manual and clerical work, simplifies the billing process,
prompts you and your partners to bill on time, reduces unbilled work-in progress, minimizes
unreported time, reduces unbilled time, measures and analyzes nonchargeable time and
provides criteria to analyze staff performance. Because a computerized accounting system is
basically a computerized data management system, the disposition of labor is almost the
same. One staff member must serve as a data-base manager and be in charge of setting up the
chart of accounts, establishing the interrelationships among the files and establishing and
maintaining an audit trail.

ADVANTAGES OF USING THE COMPUTER IN ACCOUNTING

The most important advantage of using the computer is the speed with which we can get
Accounting done. In addition, we find that it is very easy to do accounting functions. Posting
to the ledger, a tedious task of double entry, when done directly from the general ledger
module, can be largely automated when done through special purpose modules like accounts
payable or accounts receivable. With an accounts receivable module, you just need to enter
the actual cash totals of items purchased and the software distributes these amounts to the
general ledger so they become credits to corresponding revenue accounts. At the same time,
an offsetting entry is made automatically to the accounts receivable account.
With a computer, one can receive a balance sheet, income statement or other accounting
reports at a moment’s notice. We also find that some day to day data entry can be turned over
to relatively unskilled workers.
DISADVANTAGES OF USING THE COMPUTER IN
ACCOUNTING
When you use a computer, it is possible that data can be lost because of hardware or software
damage. Since the computer has no judgement of its own, it does not pick up on errors as a
human being does. There can be loss of data due to accidents like fire etc.. There can be loss
of data or change of data due to fraud or embezzlement. There can be loss or unavailability of
data due to loss of staff. Inaccurate data may be due to clerical error or mistakes in
programming. Total security is economically unachievable and some failures must be
expected. The right level of expenditure on security measures will minimize the sum of the
cost of the measures and the expected loss. There will always be some risks that are best
shared through insurance, rather than prevented or avoided.
Much computer-related crime is opportunist: people who were not seeking any advantage had
temptation thrust under their noses. Copies of computer printouts get mis-directed, or thrown
in a waste paper basket in a public place. Magnetic tapes from bankrupt companies have been
sold with data still on them. Often a programming error reveals a system flaw: someone who
by chance reads a magnetic tape file that he should have been writing discovers interesting
data on it.
Sabotage, vandalism, malicious damage, and arson tend to be even more destructive than the
Acts of God they emulate. Political and industrial action, riots and civil commotions, may not
be aimed specifically at the computer but they can be very effective in preventing its
operation.
Fraud and embezzlement are usually achieved on a computer system by altering data or
programs. There are numerous techniques, varying from additions and deletions to input data,
through changing the standing information files, modifying the behavior of programs, to
duplicating or suppressing output. Although most frauds that have been reported had gone on
for some time, it could be that ‘one shot’ frauds have been more frequent but more often
escape detection.
Eavesdropping and stealing information by tapping telecommunications lines requires the
sort of technical skill which is very widely available (to the surprise of those without
technical education). It is possible to emulate a legitimate user of a system, or discover his
password through trickery or as the result of carelessness, and thus have access to the
information he would have, such access can be very important for setting up more profitable
operations, such as taking money out of little used bank accounts, or concealing changes
made in files. There are other ways of trespassing, without using wire tapping. For example,
the magnetically encoded cards often used as keys to systems can be copies and altered,
giving the villain access to credit, cash or other valuable assets.
Wherever a computer is used to handle an organization’s accounts, it can be used as a means
of attacking the funds it controls. In most computerized bookkeeping systems, it is the
computer which effectively causes credit transfer; so by establishing false accounts, or
diverting some of the contents of the real ones, credit can reach a false beneficiary. The
system can also be used to conceal a change in the cost, or the illegitimate acquisition or the
destruction of tangible goods and services.

DEFENSES AGAINST DISADVANTAGES OF THE

COMPUTER
Dispersion, which is designed to minimize losses in the event of deliberate or accidental
threat, can be used. Duplication is designed to ensure that the system survives damage to any
individual part. Duplication is also the fundamental method of detecting errors in processing.
Defense in depth is designed to make the attacker overcome a series of barriers before he can
damage any vital part of the system. In addition, most companies have computer auditors
who ensure the integrity and accuracy of the organizations records, protect and conserve the
organization’s assets and prevent fraud, theft and error. These auditors also ensure that
systems will survive the hazards to which they are exposed.

Computer accounting over Paper accounting

advantages
There are more than thinkable advantages of computers for accounting purposes.

first: For management accounting purpose or for that matter if you are running a company
you need to know exactly whether you are on schedule. That can be done if the accounts are
in computers.

Second: For banks it helps like anything in interest calculation provision for doubtful debts
writing off of debts etc.

Third: For police the use of computers means that data pertaining to all account holders in
banks now can be collected and analysed very quickly. So if police want to know if anyone
has assets above his disclosed income then they can do so far too quickly.

Fourth: Records (entries in accounts) can be kept for any amount of time in electronic
format. Floods in 2005 in Mumbai showed that paper can be destroyed far too quickly. But
electronic details cannot be destroyed that quickly and can be kept very safe.

Fifth: For share trading after introduction of computers anyone from anywhere in world can
access his demat account and put trade. This has helped in channelising household savings to
capital market. And records for that too can be kept for any amount of time.

Sixth: For data entry level the accuracy can be monitored quite properly. Errors of
commission and ommission can be caught fairly easily.

Seventh: Complicated calculations of computing minority interest in mergers/takeovers

calculation of NAV of mutual fund units up to date position in derivatives segment profit or
loss in equity/derivatives/commodities/forex etc. can be done easily.

Eighth: Since computerisation all banks have started central processing of financial
transactions like clearing and settlements. This means anywhere banking for you. You can
deposit funds at one city and travel to another city and withdraw funds from there. No need
to actually carry physical cash.

Ninth: Since computerisation credit cards have come in existence. And that too are used this
extensively.

Tenth: By use of computers international clearing has become far too quick.

Facilities provided by computer accounting

A typical computerized accounting package will offer a number of different facilities. These
include:
• On-screen input and printout of sales invoices
 • Automatic updating of customer accounts in the sales ledger
• Recording of suppliers’ invoices
• Automatic updating of suppliers' accounts in the purchases ledger
• Recording of bank receipts
• Making payments to suppliers and for expenses
• Automatic updating of the general ledger
• Automatic adjustment of stock records
• Integration of a business database with the accounting program
• Automatic calculation of payroll and associated entries

Computerized accounting programs can provide instant reports for management, for
example:
• Aged debtors’ summary – a summary of customer accounts showing overdue
amounts
• Trial balance, trading and profit and loss account and balance sheet
• Stock valuation
• Sales analysis
• Budget analysis and variance analysis
• GST/VAT returns
• Payroll analysis
When using a computerized accounting system the on computer, input screens have been
designed for ease of use. The main advantage is that each transaction needs only to be
inputed once, unlike a manual double entry system where two or three entries are required.
The computerized ledger system is fully integrated. This means that when a business
transaction is inputed on the computer it is recorded in a number of different accounting
records at the same time.

Advantages of a computerized accounting

system
The main advantages of a computerized accounting system are listed below:
• Speed – data entry onto the computer with its formatted screens and built-in
databases of customers and supplier details and stock records can be carried
out far more quickly than any manual processing.
• Automatic document production – fast and accurate invoices, credit notes,
purchase orders, printing statements and payroll documents are all done
automatically.
• Accuracy – there is less room for errors as only one accounting entry is
needed for each transaction rather than two (or three) for a manual system.
• Up-to-date information – the accounting records are automatically updated
and so account balances (e.g. customer accounts) will always be up-to-date.
• Availability of information – the data is instantly available and can be made
available to different users in different locations at the same time.
• Management information – reports can be produced which will help
management monitor and control the business, for example the aged debtors
analysis will show which customer accounts are overdue, trial balance, trading
and profit and loss account and balance sheet.
 • GST/VAT return – the automatic creation of figures for the regular
GST/VAT returns.
• Legibility – the onscreen and printed data should always be legible and so will
avoid errors caused by poor figures.
• Efficiency – better use is made of resources and time; cash flow should
improve through better debt collection and inventory control.
• Staff motivation – the system will require staff to be trained to use new skills,
which can make them feel more motivated. Further to this with many ‘off-the-
shelf’ packages like MYOB the training can be outsourced and thus making a
particular staff member less critical of business operations.
• Cost savings – computerized accounting programs reduce staff time doing
accounts and reduce audit expenses as records are neat, up-to-date and
accurate.
• Reduce frustration – management can be on top of their accounts and thus
reduce stress levels associated with what is not known.
• The ability to deal in multiple currencies easily – many computerized
accounting packages now allow a business to trade in multiple currencies with
ease. Problems associated with exchange rate changes are minimized.

Accounting for an e-commerce based business

This concept baffles most traditional accountants and CPAs. It also baffles most clients,
believe it or not. The clients think that because it’s on the internet it should be easier. The
opposite is actually true.
Because we are talking about e-commerce, our work is complicated by a factor of two or
three:

1. Credit cards, PayPal accounts, or whatever is used, rather than cash or check, will
always include a fee. Hence a deductible expense and more accounting work.
2. Delivery.
They’re not walking into a store and walking out with something, if we are talking
about a tangible product. There is always a fee and sometimes additional income.
Hence additional accounting work.
3. Selling costs.
You’re generally going to sell these items from someone else’s website. They always
charge a fee. Where there’s a fee there’s additional accounting work and a deduction.
4. Sales Tax.
This has become a nightmare. If you are, let’s say an Illinois retailer. You are
 delivering a tangible product to an address inside the State of Illinois (that is, the end-
retail point) you are required to collect and remit Illinois sales tax. If you don’t collect
sales tax, you better have a copy of the customer’s wholesale certificate.
5. Use Tax.
If you are physically located inside the state of Illinois and purchase something for
use in the business form outside of the State of Illinois, you should probably not pay
Illinois sales tax on the item. But you are required to pay Illinois use tax.
Documentation and accounting for an e-commerce business can be much more difficult than
handling a traditional accounting client. The biggest mistake that you can make is trying to do
your own accounting. Just because you have a copy of Quickbooks, and are computer savvy
doesn’t mean that you know anything about taxation. Please don’t confuse the ability to
reconcile a checkbook with the ability to complete an income tax return that would survive an
audit.

Business Services Industry

The emergence of accounting information systems programs: as more and more

companies seek out accounting professionals with IT skills, some universities now are
offering a major in accounting information systems, which mixes topics from each area
to provide students with the requisite skills employers want
As we begin the 21st century, business organizations are facing an explosion of global
competition and innovation. Facilitating this explosion is the increasing ability of
organizations to make good business decisions based on the large amounts of information
their enterprise produces. Economists predict that by 2010 the majority of American workers
will be knowledge workers--those who make their living working with information. (1) In
this environment, it is necessary for a successful business to integrate information technology
into its basic processes, and, to do that, it needs qualified, skilled information technology
employees. In addition, these organizations need executive management and other functional
workers who have IT skills. (2) In fact, a company needs all its workers--accountants and
financial executives included--to have a high level of computer and technical skills.
Organizations are now attempting to hire college graduates who have this level of technical
skill, but universities are struggling to determine the appropriateness of their curricula to meet
this growing need. (3)

THE NEED FOR INFORMATION TECHNOLOGY

Recognizing these worker trends and economic conditions, the Institute of Management
Accountants (IMA) and the American Institute of Certified Public Accountants (AICPA)
report the need for computer and information technology concepts to be a part of the
knowledge, skills, and abilities of accounting professionals. Both say accounting
professionals should be able to apply productivity improvement software, such as
spreadsheets and accounting-specific software, and be able to interpret, integrate, and
implement information technology.
In its report, the AICPA cites five core competencies to guide its members: (1)
communication and leadership, (2) strategic and critical thinking, (3) customer focus, (4)
interpretation of converging information, and (5) technological skills. (4) IMA's 1999
Practice Analysis identified four work activities that are now expected to consume more of an
internal accountant's time: (1) long-term strategic planning, (2) internal consulting, (3)
computer systems and operations, and (4) process improvement. (5) It also identified the
most important knowledge, skills, and abilities accountants had developed in the prior five
years: computer skills, technology and networks, accounting software, teaching or mentoring,
speaking and communications, and project management.
In the last 15 years, accounting information technology has transformed from an environment
dominated by expensive mainframe computers that were programmed by specialized
information system staff to user-friendly, integrated Internet-based systems. (6) The
knowledge, skills, and abilities necessary for the entry-level accountant now include the
application and integration of information technology into the accounting process, as well as
financial and managerial accounting principles. Organizations rely on the new generation of
accountants to be familiar with today's systems and to prepare for those of tomorrow. To
accomplish this, they must have technical skills and conceptual knowledge of accounting
information systems.

How Technology has Impacted Accounting

From the early days of clay tokens to the invention of the abacus, accounting is as old as
civilization. It wasn’t until the commercial revolution at the end of the dark ages that double-
entry bookkeeping came into existence. (It began in the Venice/Florence area in Italy.) A
hundred years later, Luca Pacioli, a Franciscan monk, wrote a math book that suggested
merchants needed three things: sufficient cash or credit, an accounting system, and a good
bookkeeper. Today accounting is commonly offered as a major of study. What do you, as a
prospective accounting major, need to know about the field and the technological advances in
accounting?

What is commonly known today as “cost accounting” (defined as “The discipline of

estimating, tracking and controlling product and service costs”) didn’t start until the late 18th
century, and was spawned by an unlikely source—a world famous potter. Josiah Wedgwood
was a highly successful potter when a depression hit, and he discovered that not only were his
clerks ignoring much needed paperwork, they were also stealing money hand over fist.

He took the time to examine the books in detail, noting inaccuracies and becoming aware of
the importance of calculating overhead into the costs of his pottery. He hired a new clerk and
began weekly accounting reviews, and according to historians, the concepts of “economies of
scale” and “sunk costs” were discovered. He changed the prices of his pottery to reflect the
influence of demand, creating both a high-end line and a lower quality mass market line.
Wedgewood’s company was one of the few to survive that depression.

It took another fifty years or so for the occupation now known as “accountants” to come into
vogue. In the mid-19th century, a group of clerks in London advertised their services as
“accomptants.” As business regulations increased along with taxes, the need for professional
number crunchers became clear. The first accounting firm opened in 1845 in London, but
accounting technology and technological advances in accounting such as accounting software
didn't come until much later.

Early Technology
Accounting technology has always played a role in keeping track of numbers, and the idea of
using machines to solve mathematical problems goes back centuries. Leonardo da Vinci
actually designed a machine he called the “Codex Madrid” that contained thirteen wheels that
registered digits.

While there were several other attempts to build a numbers calculator, it was Blaise Pascal, a
French scientist, who invented the early calculator (interestingly enough, he also is credited
with inventing the roulette machine and the wrist watch).

In 1885, William Burroughs invented the first working adding machine. The first batch of
machines didn’t sell very well since Mr. Burroughs was the only person who could use them,
so they were recalled, and the corrective automatic adding machine was invented. Naturally,
this model sold much better.

Adding machines and then later—much later—calculators made the job of accounting much
easier. They led to fewer mistakes, greater accountability, and sped up the work of the
average bookkeeper or accountant. Technological advances in accounting always mean
increased speed and efficiency.

The 20th Century Information Revolution

While there were subtle changes in the field of accounting from its early days through the
1970s, the job remained virtually the same: paper records of columns of numbers. But with
the invention of the computer and accounting software, that all changed.

In 1930, Vannevar Bush, a professor at MIT, built an electronic differential analyzer. Other
inventors such as Konrad Zuse and Howard Aiken built hybrid binary arithmetic machines
and used electric relays to calculate sums. Professor Aiken worked with IBM, and in 1942
they built what could be called the first computer. Over the course of the next fifty years,
massive computers capable of only simple calculations went from filling entire rooms to the
small desktop computer most of us use at home and the office today.

Computers and accounting software allow accountants to use electronic spreadsheets—

eliminating the need for adding machines, calculators, and pencils and ledgers in one fell
swoop. It became much simpler for accountants to keep track of information on a minute-by-
minute basis and completely eliminated most mistakes. This has led to greater efficiency and
accountability, and has changed the face of accounting considerably.

New Technology Leads to New Risks

Of course, all the technological advances in accounting and accounting software is prey to
sabotage and other forms of destructive action. Fraud is still possible. But this has led to new
areas of accounting work, such as forensic accounting. New computer programs help track
any attempts to initiate fraud. This area of accounting protection and investigation will
continue to grow and evolve.

Accounting Technology at Home

The computer has not only revolutionized business accounting, it’s also changed how people
keep track of their own money. Banking online, software programs that do your taxes, and
automatic bill paying have dramatically altered how the individual handles their money.

Most of us are grateful that we no longer have to use an abacus to balance our checkbooks, or
clay tokens to figure out the grocery budget. As accounting technology continues to evolve,
keeping track of our money will be easier and easier. Thanks to some early mathematicians
and accountants, crunching numbers is more accurate, accessible, and error-proof. In the
future, new technological advances in accounting will no doubt make our lives easier.

The first step in any area of study is to review the history of the field. Accounting is a career
path anticipating strong growth in the coming years. Students majoring in accounting can be
assured of long-term career stability and success. If you have a head for numbers, consider
becoming an accountant.
Affects of Technology on Accounting Profession
The Affects of Technology on the Accounting Profession Technology has greatly affected the
accounting profession in the since that a task that normally would take eight clerks to perform
can be accomplished by one accountant. Accountants have cried for many years to get new
systems developed for their profession. It now seems that their cries have been heard.
Technology has come in and changed the way accountants perform their job duties.
Information Technology has now made it easier for accountants to generate reports and
perform year-end closes.

Computers also help with efficiency. Technology has made the process so sophisticated; it is
just a matter of plugging numbers where they go and waiting for the results. With the
establishment of these new technologies the task and man hours needed to perform a duty has
been extraordinarily decreased. In conclusion, Technology has greatly affected the
accounting profession. Tax software has become so user friendly that even the average
American can prepare their taxes without the help of a professional accountant. For example
in my profession I work at a community college in the accounting department where accuracy
is by far the most important skill to possess. Technology has been the major key in the
accounting profession therefore eliminating the possibility of human error. Now, with the
current technology tax software programs accountants can perform an individual's tax return
in a matter of minutes. By simply, clicking on a few buttons, answering a few questions,
providing the individual has the correct information and can easily prepare their own returns.
Regardless of how hard a person try to be error free, it is nearly impossible, to compete with
the accuracy of information processing systems. An example would be tax preparation.
Without the help of computers and its software such as excel, quick books the accuracy of the
work I produce would lend itself to costly errors as well as costly hours invested. Human
error is one of the greatest obstacles that technology has helped the accounting profession
overcome. Accounts are no longer pushing pencil and stacks of paper.