ACCOUNTING TECHNOLOGY

ACCOUNTING TECHNOLOGY:

Accounting has evolved from a pencil and paper ledger profession to one that uses the full extent of computer technology. In fact, there are in excess of 3,300 accounting software options available.
Most of these fall within the following general classification types:

• Work Order Management
• Warehouse Management
• Time and Billing
• Tax Preparation
• Purchase Order
• Project Management
• Point Of Sale
• Payroll
• Order Entry
• Material Resource Planning
• Job Cost
• Inventory Control
• General Ledger
• Fund Accounting
• Foreign Currency Conversion
• Fixed Asset Management
• Customer Relationship Management
• Cash Management
• Budgeting, Planning & Forecasting
• Bill of Materials
• Auditing
• Accounts Receivable
• Accounts Payable

Accounting in the Cloud

While traditional accounting software is computer based, cloud accounting operates exclusively within the cloud.

Two benefits of using cloud-based accounting applications:

• Multiple people can access and work with the information at any given time
• Data is safe from onsite physical hazards such as fire or computer theft

Business Management Systems

A business management system, or enterprise resource planning (ERP) system, is a collection of high-level tools that companies use for planning and implementing business decisions. Accounting software and tools are typically an important part of a business management system.

Client Portals

Client portals are secure, password-protected online storage areas that let accountants and their clients exchange files and information. A portal provides a way to securely exchange confidential information that shouldn't be sent through non-secure e-mail, while also allowing both accountants and clients real-time access.
A number of companies offer client portal websites used by accountants, while larger accounting firms have client portals built into their own websites.

Some portals are simple, basically just allowing for the exchange of files, such as completed tax returns or accounting software files. Other portals have more functionality, such as invoicing capabilities, tax organizing, and payroll organizing.

Emerging Trends in Accounting Technology

According to an October 18, 2012, article in Accounting Today, retail tax businesses need to consider developing mobile components for their client portals, as a study by On Device Research showed that Americans spend more time on mobile devices than on any other platform. The article also noted that the South African Revenue Service has pioneered the use of mobile portals and now has a mobile site and application for e-filing individual income tax returns from smartphones and tablets. It is expected that in just a few years the Internal Revenue offices of many more industrialized countries will offer the same services.

More information on emerging accounting technology can be found in the Journal of Emerging Technologies in Accounting (JETA) from the American Accounting Association.

The Issue of Security and Integration in the use of Accounting Technology

The foremost issue concerning the use of accounting technology is, of course, security, according to a 2012 survey by the American Institute of Certified Public Accountants (AICPA). Security concerns include:

• Securing the IT environment
• Managing risk
• Ensuring privacy
• Preventing fraud

The survey also revealed that AICPA members found the following issues related to the use of accounting technology to be the highest priority:

• Leveraging emerging technologies
• Managing implementation of systems
• Setting up decision support and managing performance
• Managing vendors and service providers