It is a common knowledge how modern technology has revolutionalized business practices and activities. Transactional time lag has been reduced tremendously and efficiency improved to near perfection; precision and accuracy have been brought to another level. This paper shall be focusing on the impact that technology has had on the accounting processes and practices. It will take a look at the various varieties of the modern technology that are leading to time reduction in transactional and instantaneous record documentation.
One of the most vital areas that technology has stepped in to improve is the time and billing system. Systems have been introduced that are able to capture store and analyze data in real time. An example is in daily time sheet entry, daily expenses, daily billing among others. Today’s time sheets software applications have replaced the traditional paper based system. Introducing new systems to enter the amount of time that employees spend on a certain project in the least time possible. This data is also instantly posted to the relevant departments. These applications have been found to be accurate and cost effective contrary to the traditional tools where data was entered on a monthly basis. Examples of these tools are Microsoft, XP Remote, among others.
Many firms would wish to see expenses recorded and stored as they are incurred. If this was to be done manually it would see a business entity committing a large portion of its staff to this strenuous and time consuming task. Today technology has changed all that by introducing a system that allows capturing of expenses on a daily basis as well as a fast expense reimbursement system. Real time capturing of time and expenses goes a long way in ensuring that there is a speedy billing of customers. The management of customers, invoices and sales becomes more effective. The effectiveness of the staff can also be analyzed on a daily basis based on the data records for the day.
Clients are billed as a project is completed rather than the traditional end of month or end of year. The system also allows digital invoicing of the client without going through the traditional process of printing and mailing which is more time consuming and expensive. The publishing and delivering of company documents and reports for instance to the shareholders and employees have been made easy. The cost of delivery and printing is greatly reduced. The reports are put on the company’s intranet where they can be easily accessed by the relevant personnel. They can also be updated on a regular basis when the need arises (Roman H. Keplzyk, 2007).
On the intranet too, firms can post daily updates on issues such as vacations. This would probably be informing the workers when their vacations are due and for how long. This is information that will be accessed online with no administrative guidance.
The advances in accounting technology see the combination of vital input and out put devices that enable users to integrate the traditional manual practices with the modern resources. We have the scanning devices that aid in real time data entry, devices of electronic data interchange. In addition, there are web compatible devices that will allow free online data flow. These are pastels, QuickBooks and Sales which are programs that allow instant analysis of data collected either electronically or manually.
The three aspects of accounting can be carried out with the interaction of traditional and modern practices. Financial reports are analyzed, summarized and readied for both internal and external decisions. Cost accounting systems allow tracking of cost as they are incurred with on time analysis of department and product performance. Managerial accounting systems provide an opportunity to the management to carry out strategic statistical analysis as well as aiding in making the best decision among optimal alternatives. The accounting information systems are structured to be in line with the basic accounting practices and standards and require constant updating to encompass the dynamics of accounting.
Technological advances in accounting have changed tremendously accounting practices in organizations. Data recording, documentation, analysis and reporting has undergone major transformations to embrace the changes in technology (Accounting information systems, 2006). Analysis of accounting data and information has become fast and accurate. With the embracing of modern programs such as quick books organizations are now able to present real time analysis of accounting events as they happen.
Cost effectiveness is the key drive behind a professional management team. As more practices turn electronic, firms are largely cutting on time and staff costs. The current trends in accounting have seen the reduction of the traditional manual practices laden with intense needs for paper work. This is greatly leading to cost cuts and making updating of information easy and more accurate.
Rather than the times when reporting of financial statement would call for physical delivery to the relevant parties, intra network allows publication and reporting of accounting document with no physical delivery being carried out. Posting of the accounting reports on the intra and internet is speedily overtaking long and strenuous print newsletters and publications.
It is with no doubt that advances in technology have impacted greatly on the accounting practices worldwide. The analysis and capturing of data, expenses and costs has enabled the reduction in transactional time and cost leaving both customers and firms management and employees satisfied. Efficiency and accuracy have taken a new turn.
Roman H. Kepczyk, July 9th 2007. Optimizing Today’s time and billing. Accounting web.com. Accessed on 23/08/07. Available online at:
accounting Information Systems, 2006. Encyclopedia of Business and Finance. Macmillan. Accessed on 23/0807. Available online at