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How Is Information Technology Used In Accounting?

by admin on May 19, 2015 Comments Off

Like every other business process, Information Technology concreted the path to accounting and transformed it drastically. There were days when a pen and paper and long hours of dedication was the way a company’s financial balances were handled. Nowadays, IT has brought revolution to this field and replaced the pen and paper with digitized systems of bookkeeping as well as accounting software. IT has not only benefited big firms but small businesses and start-ups are also implying IT into handling their accounting department to increase productivity and efficiency.

Here are some ways in which Information Technology has impacted accounting:

Safety and Security:

IT has increased the security of accounting information to manifolds. Accounting information is extremely confidential and any accounting data theft can lead to serious consequences for that company. Competitors are constantly devising ways to peep into the accounting information of their rivals so that they know how stable or unstable the competitor’s business is. In such a scenario, IT enables password protection and minimizes the risks involved in any unauthorized access to the accounting information of the business. The advanced options even allow completely discarding the data on stolen computers. Use of accounting services Singapore through our reliable firm is another way of ensuring safety.

Internet:

Unlimited and seamless connectivity and remote access allows the accounting professionals to continue their work from another location exactly from where they left off and hence they can work without breaks. Moreover, documents can be easily shared via internet and saved. Cloud accounting is a breakthrough in the field of IT as it enables online storing of accounting information and hence expediting the process even further for accountants.

Software:

IT has provided exclusive range of accounting software preeminently designed for accounting purposes. For instance, spreadsheets have proven to be extremely efficient in extensive calculations without any error or a need to recalculate. The software requires a basic training to operate and use effectively. Software can not only help in hardcore accounting but also helps in maintaining daily activities.

Education:

Sometimes a basic training and other times a four year degree program in accounting and information systems can guarantee a successful career in accounting. As IT has successfully taken over accounting information, education in information technology is also a prerequisite for handling accounting software. As the accountant is essentially required to be formally educated in IT, there are many degree programs that offer accounting careers.

Accounting owes heavily to IT for reducing the time needed to do extensive recalculations and find errors.

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