Information Systems Advancing Accounting

Information Systems Advancing Accounting

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Accounting information systems have been advancing as technology advances. “Advances in technology will put an almost universal demand on CPAs to be more computer-literate than ever before” (HARRINGTON, 2005). It is no longer about just keeping a correct balance. People want to be promised privacy and protection. Economic and Business Reporting

The good and bad problem with the new technology is it causes major changes in how businesses are operated and used. Accounting is not just calculating numbers; it is a people business. Technology has moved those things forward. Now instead of a binder holding account information; it is a computer, and accountants just email their clients updates. Technology brings new changes in information systems everyday in several ways like financial and managerial accounting, taxation, and auditing. It has reorganized most businesses from global to local sizes (Bagranoff, N. A., Simkin, M. G., & Norman, C. S., 25). The increased efficiency and accuracy in accounting comes in several ways because there are so many different types of systems for financial and managerial systems. The systems can input, process, and output information automatically. The systems still need to be set up by an accountant or it could end up useless because someone does not know what they are looking for in the information. H&R Block is an incredible forward thinking company that has many layers. The systems set up to help with the information systems in financial and managerial accounting are all computerized much like the programs used for customers to input their tax information also calculates how much the customers owes per page and connects to the businesses main books that account for paychecks and payments made to the company (New Technology for the Accounting Profession, 2011). H&R Block actually has their own banking systems that allow customers to set up account and have a debit card. The overlapping systems make the old manual systems almost useless because it makes the information much more accurate because the computer is programmed to do something is does not slip up; it just does what it is told to do the information is on a much more direct route. Things like payroll for a company like H&R Block are so quick and easy because of programs like PayChex making the process so much quicker (). The accountant can do payroll in a day instead of it taking all week for a store. The system will take the information like hours worked and taxes taken for federal, state, and local government and make the check for the correct amount then take and set aside the taxes. The computer can even do the direct deposit once the correct information is in the computer saving the company time and money because there are no paper checks and no one needs to hand them out on pay day. Life for the modern accountant has most definitely changed because the process and the knowledge are different. Security is the biggest thing that has changed because there is a completely different look at the computerized security. The systems are set up to stop the funding of terrorism and other illegal activities while protecting the people who are trying to honest with their money so no one can take it (TYPES OF INFORMATION SYSTEMS, 1990). The best ways to make sure things are correct and secure is to check or audit everything. Laws are helping to protect both incidents from happening in this country. The U.S. Patriot Act is one of those laws because it contains a number of parts that directly corresponds AISs, including sections that focus on money laundering, auditing, and conducting business with correspondent banks abroad (Bagranoff, N. A., Simkin, M. G., & Norman, C. S., 25).Dissertation on the under pricing of initial public offerings

 A great example of a business that uses the current technology to be efficient and accurate would be H&R Block. They are a national renowned company that uses a program that allows workers or customers to input information needed by even telling them what is needed for the taxes. The system is basically fool proof, but because it was never an issue now it changes how the work is done. Our life will probably continue to change because the technology and the need for change continue. Financial and managerial accounting, taxation, and auditing have changed in serious ways because the changes happening over the last 20 years. Accounting will change according to what we need to keep track of because all useful information; it does not matter it is in ones and zeros or cash. The information needs to be tracks, summarized, and rechecked. A computer can do a lot, but all technology still needs rechecked because it is used and made by humans. The technology is only as good as the makers. The information systems will continue to work well as long as we keep that in mind.

References
Bagranoff, N. A., Simkin, M. G., & Norman, C. S. (2010). Core concepts of accounting information systems (11th ed.). New York, NY: John Wiley & Sons. HARRINGTON, C. (2005, October). The Accounting Profession: Looking Ahead. Journal of Accountancy (2011, 08). New Technology for the Accounting Profession. StudyMode.com. Retrieved 08, 2011, from http://www.studymode.com/essays/New-Technology-For-The-Accounting-Profession-760067.html TYPES OF INFORMATION SYSTEMS. (1990). Retrieved from http://bisom.uncc.edu/courses/info2130/Topics/istypes.htm

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