The Effects of Technology on the Accounting Profession

The Effects of Technology on the Accounting Profession
John Depakakibo
Sara Carpenter

The Effects of Technology on the Accounting Profession
The competition in businesses has increased, consumers are more informed, and technology has changed the way the world communicates. Information technology is continually impacting every area of accounting. Keeping up with this technology is important to stay competitive in business. This paper is about how information technology and accounting information systems are bringing about changes in the accounting profession. A variety of technologies at the General Nutrition Center will be discussed in this paper.
Accounting Information Systems and the Accounting Profession
In today's volatile business environment, there is increased competition and the need for better and faster communication for decision making. Because information technology can now capture transactions, accounting information systems, can produce financial statements more readily. Not all of the adjustments that accountants make are not recorded minute by minute. But, businesses can track sales and many expenses on a continual basis. Large amounts of accounting records are increasingly presented in an electronic format. Companies are reporting their financial outcome quarterly and an increasing number of companies are transferring their financial records to a public network.
There are many reasons why companies are facing growing competition. In order to remain competitive, companies must have techniques to control costs associated with its various operating activities. An example of an accounting information system in the area of cost accounting is an activity-based-costing system. Overhead rates were applied to production. As time passed, technology has advanced and production has become automated and the use of a predetermined overhead rate has become obsolete. Activity-based-costing applies overhead costs on the basis of...