The essay discusses the impact of technology on the public accounting profession and the major changes in the accounting environment in association with the business market, government, customers as well as employees. The essay also discusses the major challenges with respect to the technology and accounting profession. The highlighted applications of the impact and balance scorecard of financial institution would also throw some light on the accounting profession.
The worldwide use of technology has empowered many companies to win the competition. It is vital for the auditors also to take a step ahead and commence using the applications of technology in the field of auditing because auditing is an important part of accounting profession.
The impact of technology on the accounting profession
Impact on business to business
Impact on business to consumers
Impact on accountants and companies
The future impact
Impact on business to employees
Impact on business to government
Balance Score Card
Impact on auditing
The public accounting profession is one of the oldest and largest professions recognized as a high ottoman of green-eyeshade poring on the large column of financial figures (Montagna, 2019). The accounting profession comprises the balance of the accounting books, statements, and receivables (Montagna, 2019).
The formal definition of an accounting profession refers to the art and science of organizing, registering and summing of the financial performance of the company (Fenwick & Edward, 2015). The accounting profession is a sequence of noting and incorporating the financial transactions that constitute preparation of balance sheet, purchases, sales and maintenance of the records (Fenwick & Edward, 2015).
The profession is connected with the evaluation of the financial performance of the company and managing the results thereof (Fenwick & Edward, 2015). Technological use of advancement is something more than just recording and classifying, it reflects all the aspects together that encompass all the business operations and continuous flow of the financial data across the business industry (Fenwick & Edward, 2015).
The impact of technology on the public accounting profession is superfluous due to the major developments in the recent technological changes (Mgi Worldwide, 2016). The changes have reshaped human progress also.
The accounting profession is also being transformed by technological progress (Mgi Worldwide, 2016). The latest example of the impact of technology on the accounting profession is the practice of electronic worksheet. The worksheet namely VisiCalc that was exerting a long time of one week to develop the information has now shortened to the 15 minutes is because of the redundant use of technology (Mgi Worldwide, 2016).
The association of charted accountant has also recommended the use of smart accounting (Islam, A, 2017). Smart accounting indulges the use of technology in accounting practices (Islam, 2017). These practices allowed accounting professionals to broaden their minds to the possible changes that can be addressable. The changes would be beneficial in the long run as the use of technology will transform the accounting profession in a better and positive way (Sultana & Akhtar, 2018).
Challenges in the accounting profession
The profession of accounting will face major changes due to the increasing use of the internet of things (Islam, 2017). The three major changes that could take place in the accounting profession with reverence to the technology are
The initiation of smart and digital use of the technology in accounting practices,
Continuous globalization of the standards
The formation of new rules and regulations with respect to the use of accounting and technology (Islam, 2017).
The accounting profession started to look at new ways of inscribing things. Accounting software and the application of computers has improved the accounting industry completely (Mgi Worldwide, 2016). The use of a program like excel sheet of Microsoft software, the accountant can swift the practices in order to expedite up the tasks and improve the efficiency and effectiveness of doing the accounting practices (Sultana & Akhtar, 2018).
With the help of technology, the accountant can readily do the accounting practices such as
Statistical analysis of data,
Financial analysis of the figures
Financial forecast within no time (Luo et al, 2018).
The use of accounting technology has strengthened the accountant in turning from one desk to another, covered with significant files and making calculations that were taking prolonged hours to get completed (Tornqvist & forss, 2018). Now the more dynamic way to perform the accounting practices has enabled the accountant to take the new challenges and tasks that were difficult to take earlier (Sultana & Akhtar, 2018). All these credential factors have improved and facilitated the interaction between the client and the accountant (Luo et al, 2018). At the same time, the contraction in the use of paperwork has also added some twinklers in the accounting profession (Islam, 2017).
With the assistance of the internet and electronic mail, the accounting professionals can now access the information by acknowledging the delivery of information through email and thus abates, the number of clients visits in person to the offices (Sultana & Akhtar, 2018). The use of the external memories abbreviates the size of equipment and the given space required to store the information. In addition, the auditing software programs have also addressed the work of the auditors more economical and useful (Luo et al, 2018).
The departments of accounting have disappeared from the companies in the same proportion as that of the acquired companies (Tornqvist & forss, 2018). The use of integrated information systems has also checked the total time invested in data transcribing (Tornqvist & forss, 2018).
Nowadays, the practice of bookkeeping can also be accomplished easily, thus incremental possibilities have been increased for the accountants to operate within their own initiatives (Tornqvist & forss, 2018). Many of them even favor working from their homes (Sultana & Akhtar, 2018). At the same time, the corporations have modified the accounting work rigidity, and willing to assign the tasks to more economical and efficient spirits and positions (Luo et al, 2018).
These changes have undergone to switch the accountant into a financial specialist. The accelerating capacity would also be beneficial to analyze and interpret the data and, thus successfully enhance the quality of the desired financial information recorded in the presented entities' of the financial statements (Sultana & Akhtar, 2018).
It is imperative that accounting professional and companies should know the different ways to exploit the technology in the best possible manner. The professional and companies should be capable of handling the technology in their profession that would be great if they are capable to do so as the use of technology is tremendously progressing (Mgi Worldwide, 2016).
The future impact
There would be some major changes that could be occurred in the next ten years (Mgi Worldwide, 2016).
In the coming years, the client would be able to access more information quickly,
there would be possible changes in the role of information compiler and financial analyst,
There would be an accretion in the assistance procedure given to the client in order to solve the queries correlated to the financial matters of the client.
The quarries could be linked to bookkeeping entries, decision making and assistance in business decisions and tax matters (Mgi Worldwide, 2016).
The use of paperwork would be eliminated in the coming time, at the same time the practice of bookkeeping in accounting would vanish,
The work would be practice smartly without the use of visible offices, there would be increment in the use of electronic tax procedures, the data transmission with the help of cloud computing would rise in the coming years,
The practice of audition will grow easier for the auditors that are being count as one of the complicated tasks nowadays (Mgi Worldwide, 2016).
In the current time, the combination of advanced machine learning, robotics and the use of artificial intelligence would effectively contribute to the success of the public accounting profession (Sultana & Akhtar, 2018). But the major impediment of the technology is that it can only be used with the assistance of human intelligence. The internet of things can be collaboratively used with the critical thinking of high skilled accounting professional (Sultana & Akhtar, 2018). Though technological advancements are partially replacing the accounting jobs, the advancement is also serving most of the accounting professional to think, learn and perform better in the fancied domains (Sultana & Akhtar, 2018).
The use of technology in the accounting profession is an appreciable trend that has brought plenty of developments and positive changes to the given industry (Luo et al, 2018). The surge of technological advancement mop all the complications associated with the accounting profession and successfully assist the professionals to give the most effective and efficient results (Luo et al, 2018). The golden age of technological advancement has enlightened not just accounting field but others field also such as service industries, commerce, and agriculture (Luo et al, 2018).
The major initiations taken by the government authorities in order to assist the artificial intelligence in the accounting practices are the issue of technological advancement development plan in 2017 to promote the use of artificial intelligence in the accounting profession, the Chinese government have also approved the use of artificial intelligence in the accounting profession, in 2018 Beijing have also appreciated the updated standards of the training and evaluation program application in the accounting profession, one of the world’s largest accounting firm has also injected the use of artificial intelligence in the areas of auditing and taxation practices of the accounting profession (Luo et al, 2018).
Smart accounting can bring enormous changes in the procedure of the handling of day to day tasks (Tornqvist & forss, 2018). The practice of automated accounting practices would successfully bring a positive impact on the accounting profession (Tornqvist & forss, 2018). The combination of the use of cloud accounting, internet of thing, big data and blockchain would lead to the achievement of automated accounting practices (Tornqvist & forss, 2018). This holistic view of the combination of technology and accounting practice would arbitrarily impact the accounting profession (Tornqvist & forss, 2018).
In the progression of the information technology and the related impact of the same on the accounting profession, it would be desirable for the professional to use the new tools linked with the information system and technology (Mgi Worldwide, 2016). The relevant applications are given as follows:
The use of Technology can solve many problems of pain and inefficiency in the accounting profession in order to increase the value of creative work being practiced in the accounting profession (Luo et al, 2018).
The use of technology in the accounting practices will successfully promote the smart work and greater innovations in order to strengthen the effectiveness and competitiveness of the accounting practices (Luo et al, 2018).
If we notice the latest technology trends we cannot forget to add the use of cloud computing-based software in the accounting practices (Mgi Worldwide, 2016)
With the help of cloud computing, the user can readily access the serves without any license upgradation, restoration, and preservation (Mgi Worldwide, 2016).
Balance scorecard provides the information about the past financial results of the company (Singh, 2018). It has four major perspectives that are given as follows:
The problems associated with the accounting profession such as the major incidents of violations in accounting information, the suspension in preparation of financial statements and reports, fumbling valuable data in the financial statements, interpretation, and distortion of the financial statements have affected the accounting profession authenticity into the deep (Masanja, 2019). These disfigure can be easily eliminated with the help of the efficient use of technology (Masanja, 2019).
Before the introduction of technology in the field of the accounting profession, the work was executed manually (Masanja, 2019). Due to the manual work, the chances of slips were high.
Impact on auditing
Many developing countries have initiated a step towards the development and regulation of an effective accounting profession with the aid of technology (Alnesafi & Omari, 2018). The combined efforts of accounting and auditing association have led to the revitalization of accounting practice with the aid of smart technological assistance (Alnesafi & Omari, 2018).
As the auditing information is advanced and complicated (Masanja, 2019). It is important to check the authenticity of the same that can easily be addressed with the assistance of information technology (Masanja, 2019). The technology created a prominent impact on the general auditing practices that can be easily discerned with the examples of advancements in the field of accounting profession (Masanja, 2019).
The impact of technology on the public accounting profession is superfluous and has led to the increment of the technological use.
The association of charted accountant has also recommended the use of smart accounting
The profession of accounting will face major changes due to the increasing use of technology and the threats associated with the use of the technology.
Business to business market has also expedited up the tasks and improves the efficiency of doing the accounting practices with the help of statistical and financial analysis.
Business to consumer market use the assistance of the internet and electronic mail to reduce the number of clients visit
Accountants and companies have also modified the accounting work rigidity in order to switch the accountant into a financial specialist.
The future impact of the accounting profession highlighted the elimination in the use of paper work, physical offices and book keeping entries.
The technological advancements are partially replacing the accounting jobs and creating the impact on the business to employee market.
The government of different countries have also promote the use of technology in the accounting profession
The model of technology highlighted two important factors namely perceived use and perceived utility of the technology.
The challenges in the accounting profession have also required the use of rapid technology
The technology also created a prominent impact on the general auditing practices
The perception of an auditor plays an essential role in the adoption of technology in auditing mechanism (Tarek & Mohamed, 2017).
The auditor with the expert knowledge of technology in the accounting field would be a drastic combination of the accounting profession (Tarek & Mohamed, 2017).
It is significant to address the auditing complication because of the rapid advancement in technology (Tarek & Mohamed, 2017).
The reliance of every activity on the technology would be a major achievement and favorable for the accounting profession (Tarek & Mohamed, 2017).
Financial institutions are using the system software in order to practice accounting information without any complication (Tarek & Mohamed, 2017).
Most of the companies are investing the money in order to buy the technological tools that can assist the accounting procedures (Tarek & Mohamed, 2017).
The application of digital technologies with the combination of big data analytic will create an impact on the accounting profession at national as well as international level (Fenwick & Edward, 2015).
The application of coding and algorithm are tremendously increasing in use and would lead to the reshaping of relationships between professional and clients (Fenwick & Edward, 2015).
The required cooperation between the accounting practices and informatics will affect the profession in a better and useful way (Fenwick & Edward, 2015).
To conclude, the use of technology has led to many advantages that include continuing professional development, the enhancement in the competency and knowledge of the professional auditors, the improvement in the legal system of accounting and verification of the relevant accounting functions. The balance scorecard of the financial company has shown the important elements of the accounting profession. The influence of technology on the work of the public accounting system and will continue to do so. The essay successfully find out the impact of technology on many related bodies and suggested the importance of perception of the auditor and other associated uses of the technology. The capacity of the accounting profession to understand the technology has successfully developed easy practices in the accounting profession.
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