Technology has laid its impression on almost every field today. There is hardly anything that has not been improved or enhanced by the technology. With all the improvement and development going, the need for getting better is still on. Accounting is not an exception when it comes to the alterations and changes produced by technology. So if you’re wondering how technology has changed accounting then there are few points that you might feel worth reading.
Accounting is equally old as civilization. It existed from the time of the invention of abacus. After that, came the commercial revolution that introduced double-entry bookkeeping. Also, at that time, there were hardly any industries, factories and organizations that have to be looked after to calculate the profit, losses and other tax statements to keep the business running smoothly. In the early times, people were hardly aware of different formulas and applications applied in the field of accounting. But today accounting is commonly offered as a major study subject.
Although we can say that the changes and updates in the field of accounting have not been made quickly but slowly and steadily, the methods, techniques and principles of accounting have been modified and improved with time. As compared to the 20th century, today we have computers and laptops that completely eliminate the requirement of calculators, pencils and ledgers in just one fell swoop. Now it has become easier and simpler for the accountants to keep a record of the information so that they can eliminate the most frequent mistakes completely. Not only it has provided greater accountability and efficiency but has also transformed the accounting phase considerably.
Although everything has its own qualities and flaws and same can be said about the technology. The electronic information is subjected to sabotage and also several frauds can be made by processing the information. Such kind of illegal activities have opened a new area of forensic accounting. It helps in keeping a track on frauds.
The improvement in the field of accounting has not only assisted the organization and businesses but has also allowed people to maintain a track on their personal money. We are now provided with more facilities like online banking, and a variety of accounting software that helps us in calculating our taxes, automatic payment of various bills, etc. We should be perhaps thankful to the technology for bringing such an excellent change in the field of accountancy and providing common people with such a comfortable and easy to manage life as now we don’t have to depend upon the calculator anymore!
Thus, we can see that technological improvements to accounting have entered every sphere of our lives – be it personal or professional. And it is with a lot of advantages for the end user – whether it is an accounting professional or a regular person like you and me.