Technology Changes and the Impact on the Accounting Profession
OBJECTIVE OF THE STUDY
The general objective of this study is to investigate the impact of technological changes on the accounting profession. The specific objectives include;
- Investigate the extent to which technology has affected the accounting profession.
- Identify the benefits of technology to the accounting profession.
- Identify the challenges of technology in accounting.
REVIEW OF RELATED LITERATURE
INFORMATION TECHNOLOGY ROLE IN ACCOUNTING DEVELOPMENT
Trade in companies and institution is very different with recent years. Strong effects of information technology such as computers, the Internet, wireless, software and hardware have been changed business and management style generally. New practical software, improved obtained results in different sections of a company or factory such as production line, packaging, accounting and management. Improvement in performance and obtained results leads to promotion in quality level of products or services, more attractions of customers’ satisfaction, and obtain more profit finally. Accounting systems are one of the systems with the most changes due to the IT progress. These changes and developments help accountants to overcome the defects of traditional methods. In traditional methods of accounting, accountants were notes their calculations, statistics and data in papers, which problems of these method need to be investigated in other researches, but low accuracy and speed, information losses due to the different reasons and environmental problems are disadvantages of these methods, briefly. Mentioned problems in traditional methods of accounting, have been resolved in new methods; by automated software and computer, manual calculations and paper usage is not required anymore for accounting calculations. The strength of these applications is their flexibility in programming; so, accounting software can be used in different companies with different goals, or an application can be written for a company, exclusively. Therefore, there is no limit in coding software for different companies. The raised question is how to choose the type of software by company. Two factors are effective in this choice; the first factor is the amount of operations, which should be done by accountants, the second one is the number of users who access to this system. According to the mentioned notes, stronger application is needed in the larger company. On the other hand, if a normal company use from very powerful and professional accounting application, it spent additional cost. It must be acknowledged, information technology has been significant contribution in improvement of accounting groups. In this regard, some advantages can be noted such as short time needed to present financial information to managers and stakeholders. Huge amount of today’s calculations are very time consuming, if accountants perform them based on traditional methods, and the obtained results are not reliable completely. In addition to the shorter time of calculations, increased accuracy, improved performance and environment-friendly method, are other advantages of information technology in accounting. In the next section, these advantages investigated, separately
ADVANTAGES OF NEW ACCOUNTING SYSTEMS
Accounting systems appropriated with information technology progress
The greatest achievement of information technology on accounting is organized and disciplined financial information investigation and submits by using special applications and smart computers. In this method, accountants don’t spend their time and energy, completely; furthermore, there is no need to paper for information submits. All the manual operations, such as calculations, submit information and provide financial report, defined as an accounting application by defaults and installed application in a computer performs all of these proceedings with higher speed automatically. In this method, instead of complex and time consuming calculations, according to the conditions, accountants choose suitable inputs and receive desired output in the shortest possible time. If existing applications are unsuitable for a company demands, then managers can request to experienced programmers for applications appropriated with their demands. Therefore, there is no limit in applications for companies or institutions. New accounting systems, reach necessary information to managers quick and timely; so, they take the best decisions in suitable time. In the age of competition between firms, based on mentioned notes, new accounting systems are important more than ever.
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine Technology Changes And The Impact On Accounting Profession. Selected banks in Benue state forms the population of the study.
DATA PRESENTATION AND ANALYSIS
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
Table 4.2: Demographic profile of the respondents
SUMMARY, CONCLUSION AND RECOMMENDATION
It is important to ascertain that the objective of this study was to ascertain Technology Changes and The Impact On Accounting Profession. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the Technology Changes and The Impact On Accounting Profession
This study was on Technology Changes and The Impact On Accounting Profession. Three objectives were raised which included; Investigate the extent to which technology has affected the accounting profession, Identify the benefits of technology to the accounting profession and Identify the challenges of technology in accounting. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from selected banks in Markurdi, Benue state. Hypothesis was tested using Chi-Square statistical tool (SPSS).
The accounting industry is now speaking a brand new language of business. It is the language of future generations of accounting professionals. The evolution of accounting technology has been tremendous with strong growth potential for the future. The advancements have taken the industry to many new levels of opportunities that I have discussed throughout this article. In comparing and contrasting the changes that have occurred with the use of technology in accounting throughout the ages, enterprise productivity has created career stability and many diverse opportunities in this successful industry of professional accountants.
It is hereby recommended that accounting firms should be more efficient and timely in their responsibilities with a view to meet up with the needs of their clients.
- Acar, S. & Gürsoy, H. (2008). Yönetici Sekreterlerin Bilgisayar Temelli Uygulama Yazılımlarını Kullanma Düzeylerini ve Beklentilerini Belirlemeye Yönelik Bir Araştırma, Ticaret ve Turizm Eğitim Fakültesi Dergisi, 2, 52-71.
- Acevedo, L. (2012). Business benefits of information technology. Retrieved on 30 April, 2019 from http:// smallbusiness.chron.com/business-benefitsinformation-technology-4021.html
- Adir, Z., &Tiago, W. A. C. J. (2004). Impact of management accounting information and AMT on organizational performance. Journal of Information Technology, 19, 203-214.
- Aksoy. T. (2002), Tüm Yönleriyle Denetim, 1. Baskı, Yetkin Yayınları, Turkey: Ankara.
- Allahyari, A. & Ramazani, M. (2011). Firm technological change and its effects on management accounting change: case study of Iranian manufacturing firms. Global Journal of Management and Business Research, 11(9), 56-62.
- Alsarayreh, M. N., Jawabreh, O. A., Jaradat, M. M., & Alamro, S. A. (2011). Technological impacts on effectiveness of accounting information systems (AIS) applied by aqaba tourist hotels. European Journal of Scientific Research, 59(3), 361-369.