How Is Information Technology Used in Accounting?



Information technology has impacted accounting processes in a very good way. It is difficult to find anybody doing manual accounting with paper and pencil these days. Since accounting is about dealing with information-- business information--any advances in this area will have a positive impact in the accounting department, from the old days of the battery operated calculator to the fast computers of today.

Equipment

The most obvious impact of technology in accounting is the presence of computers, printers, scanners and faxes. Information technology (IT) transformed the accounting world--no more green paper sheets and pencils. The good news is that prices are affordable on most of the equipment. It is not just for large corporations; small business can get IT equipment easily and at a reasonable cost. The machines are sophisticated, fast and easy to use.

Software

Besides the equipment, accountants appreciate the software. For example, spreadsheet programs are highly efficient at helping accountants with calculations and reporting. There are accounting programs in the market that are easy to use and affordable, making them very popular with small businesses. Software can help accountants in their daily tasks, such as paying bills, recording transactions and reporting. The program keeps all data organized and in a centralized location.

Internet

The Internet opened many doors and made life easier in many ways, especially in the accounting area, where documents can be shared, research can be conducted and taxes can be filed-all online. Connection to the Internet can be wireless and simple. Businesses don't have to buy software to run some programs. Instead, some sites host the programs online, where files also can be saved.

Security

Information technology is used widely in accounting security. Identifications and passwords limit access to confidential information. Instead of binders and papers lying around, security can be greatly enhanced with the proper computer programs. Using a program, accounting information can be encrypted in a way to prevent unauthorized use, making it quite safe. A lost, stolen or misplaced laptop or desktop computer can be tracked using security software that can be activated remotely.

Education

Because of the close synergy between accounting and information systems, many universities have started offering four-year degrees in "accounting and information systems" or "accounting information systems." Quite a few universities offer a major in accounting and a minor in information systems. The program usually includes the typical accounting concepts and IT. The accountant of the present and future must be technologically savvy to be relevant, and the universities are preparing new graduates for this challenge.

Source: http://smallbusiness.chron.com
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