The advancement of Information Technology (IT) significantly affects the development of accounting whose activities are inseparable from it. The more advanced IT is, the more it influences the accounting field. The development of information technology, especially in the age of technology, has a substantial effect on Accounting Information Systems (AIS) in a company. One impact that is tangibly experienced is data processing which has evolved from a manual system to a computer system. In addition, internal control in AIS and the increase in the volume and quality of information in financial reporting are also affected.
The benefits of IT in Accounting for various organizations (Hall, 2010) would be as follows :
Accounting and financial information is very much needed by various parties, especially for management, as a basis for making business decisions. In addition to management, financial information is also needed by parties outside the company such as: potential investors, creditors, tax offices, and the general public. In order to present reliable financial information (informative, accurate and timely), a system is required to process accounting data into a financial report. The basis of the accounting information system comes from a series of systems that are integrated with software and accounting so that they form a series in a programme or software (Hurt, 2008).
A solution that many small to medium-sized businesses are beginning to embrace is online accounting software. These applications simplify the process of calculating income, cash flow, and payroll. Your company’s financial information will be secure, yet accessible from anywhere with the correct security code. Simply put, online accounting software is a good investment for small to medium-sized businesses (CPS Soft).
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Generally, online accounting software is easy to learn and use in daily business operations. Your account will be up to date with regular input of data, bank statement information, and invoices. The software can automatically upload, download and process according to categories. As such, you and your employees do not have to worry about accounting details and with just a single click can perform what is required efficiently.
Online accounting software stores data online and this becomes one of the reasons business owners are concerned about database leaks. Security is a top priority for online business software companies. Online connections make it easy to issue invoices to customers, connect with bank information, and access the financial health of your business, regardless of where you are.
Effectively managing cash flow can improve the process of running a business. Managers and business owners can see profits and losses more thoroughly on online accounting software. In addition, online accounting software allows them to easily determine incentives for employees or discounts for customers.
Creating multiple invoices with online accounting software certainly saves time and prevents losses due to human error. In fact, invoices can be sent directly to customers via email. Invoicing is one of the important aspects of business because it provides income for the company.
Online accounting software prevents its users from committing errors in calculations. Accuracy is crucial for any kind of computerized business, as miscalculations are likely to lead to significant losses or other issues
Cost savings is one of the biggest advantages of implementing online accounting software. For a small company that has a tight budget, hiring an accountant will be a budgetary consideration. Even running an in-house software or server will incur huge costs with system upgrades and applications. So, when a business purchase online accounting software, the only thing to be addressed is how to afford the software and train employees to run the system. Nowadays, many online software companies operate with a subscription system, companies only need to subscribe to a modest monthly fee compared to a very expensive one-time payment.
Online accounting software is more efficient than filling in documents or worksheets as half the work is already done. This can help employees to be more productive than before.
The various types of online accounting software are helpful in business, namely keeping track of the trend of losses and profits that occur. This is better than the previously. Thus, it allows businesses to find new opportunities to increase revenue.
Apart from accounting software, there has also been a significant growth in the use of cloud technology. Cloud computing has played an instrumental role in the transformation and brought benefits to corporate accounting as well. It allows them to be more productive and efficient, with improved service quality. Here’s how cloud technology is transforming accounting systems.
Today’s cloud technology has dramatically changed the accounting system to be more flexible.
An accountant must possess the necessary measures to track and record information accurately. Cloud-based accounting system allows accountants to focus more on tracking and analyzing rather than on posting transactions. Thus, the monthly closing process and financial reports can be produced at a faster pace.
The bookkeeping of a company is certainly related to sensitive financial information, which cannot be publicly displayed. Therefore, they must implement high-quality security measures that can efficiently protect their data and prohibit illegal access. However, there are still companies that utilize conventional accounting systems which lack modern security systems and can easily be hijacked. Cloud providers are known to have the necessary resources to provide high security systems. In addition, by having an IT team, companies can also monitor security around the clock by regularly updating servers and security patches.
Cloud accounting allows you to access your data and accounting system from anywhere, anytime, from any device. Unlike conventional accounting systems, cloud-based accounting systems are device-independent and enable access using any device for remote working.
Reference Link :
James A.Hall, Introduction to Accounting Information Systems, 7 th edition, South Western, 1011 (Hal)
R.L. Hurt, Accounting Information System, McGraw Hill, 2008 (Hur)
Accurate Accounting Software, CPS Soft Books, Magazine, Journal, and Articles from relevant websites.