Contemporary information systems are changing the various aspects of the accounting profession. Technology now provides means for accountants to easily complete their tasks more efficiently and productively. On a corporate level, technology gives large offices the capability to streamline their records regardless of size or volume since databases are now kept in digital format. As a response to the changes brought by technology, the accounting profession has developed and used more modern ways to counter the modern threats to accounting records as well as to prevent certain risks involved in adopting these modern tools.
While modern technology has greatly revolutionized the accounting profession, the fact remains that the traditional accounting principles are still observed today (Orlikowski, 2003). Some of the most common technological tools used in the profession are several types of computer software that allow the digital input of accounting records as well as the digital storage of the files. The most typical example is Microsoft Excel which aids in the encoding of spreadsheets through the use of a computer workstation.
The software has many features that provide a number of advantages for the accountant such as ease in computing long entries as well as effortlessness in keeping a digital file of accounting records that can be transferred from one computer to another. As a result, accounting tasks are completed faster and files are stored and transferred more efficiently compared to the traditional accounting methods. Cost accounting systems usually make use of computer systems that allow the real-time tracking of the delivery of goods and services.
They also give advanced and accurate analyses which accountants can use to suggest the most suitable resource allocation measures based on the tracked performance of the delivery systems. The flow of transactions based on monthly accounting reports are also monitored more closely as accountants now have the capability to view monthly accounting reports in the form of digital graphs and spreadsheets that are more comprehensive and more reliable.
On the other hand, management accounting systems allow employees at the manager-level to have easy access to statistical analysis and advanced reporting based on the current accounting records. These records are entered into the system which are processed, the output of which is an advanced analysis of, say, the financial performance of the company in the next two months of operation.