Accounting Functions and Information Technology
In today’s world, information technology (IT) is the way of the present and the future for organizations. Computerized accounting systems are relied upon heavily for accounting functions which virtually run every aspect of the business in order to maintain the processes efficiently and effectively (Bagranoff, et al, 2007). Accounting functions with the use of the computers, networks, software, internet and the intranet has made a tremendous affect on organizations by the amount of time it takes to process orders, deliver products, inventory control, make corrections, make decisions, financial reports, set budgets and simply managing the organization. Benefits stand out with the use of IT more so than just the quick responses such as the availability of information, global expansion, research and development, job market, wi-fi technology and knowledge base. Also, many challenges arise with IT being available worldwide such as the security issues, clear audit trails, how the information flows through each step of the process, continued scandals and deciding on useful information rather than information overload (Bagranoff, et al, 2007).
With the evolution of the computer going from mainframes that were large enough to take up an entire room, to laptops that could be carried into the field with such devices as the flash drive to store vital information and the latest craze of wi-fi technology has led to organizations having more benefits and challenges in comparison to just a few years ago. The flow of information on a computer with accounting functions enables management to produce reports at the click of a button to use for decision-making purposes such as ordering, performance evaluations, inventory control, financial reports and budgets (Bagranoff, et al, 2007). Wi-fi technology such as cell phones and PDA’s is probably the most advanced step in the accounting field, enabling accountants to...