How have computers changed the accounting process

How have computers changed the accounting process?

Technology surrounds us in everything we do, making our lives less stressful and more convenient. Computers, out of all the advances in technology seem to be the most beneficial. Computers are now doing so many tasks that were once done by hand; the accounting process is one of them. What does the computer do that cannot be done manually? What are the benefits to the company by using accounting software? By using computers, does it provide more useful information?

In order to answer these questions, we found that the following sources provided very useful information:

Morris, Joseph M. Software Industry Accounting. New York, John Wiley & Sons, Inc. 1993.

This book was very useful in explaining how to understand accounting, financial reporting, and auditing in the software industry. The book does not explain how computers have changed the accounting process, but it does explain the accounting procedures for the software industry, which is helpful in understanding the correct procedures in which software companies can operate.

Most, Kenneth S. The Future of the Accounting Profession: A Global Perspective. Greenwood Publishing Group, Incorporated, 1993.

Most’s book looks at a very unusual often-overlooked question. With the increasing technology today, will computers make accountants obsolete? You may be surprised at how logical some of the questions proposed are. This book makes you look at the other side of the technological advances. Is it really doing more harm than good? This book explains that and many other questions.

Previts, Gary John and Barbara Dubis Merino, A History of Accountancy in the United States. Columbus, Ohio State University Press, 1998.

This book gives a detailed history of accounting from 1492 until present day. It explains how technology helped change the profession, by making the whole accounting process more efficient in a shorter amount of time. This book is highly recommended if you are interested in the remarkable history of accounting.

Weinstein, Grace W. "The Bottom Line: Inside Accounting." Today. Chicago, Nal Books, 1987.

In Weinstein’s Book, she talks about how the stereotypical accountant is very meticulous and by the book.” This book continues to talk about how technology and computers changed all of that. “CPA’s can develop cash-flow projections and budgets analyses in a matter of minutes, in which used to take days or weeks” (201). Weinstein’s book elaborates on how technology is helping accountants do more than what many people believe to be just doing taxes and audits.

www.accounting.com

This site has information for everyone. There are boards for accountants to post resumes and for employers to post wanted notes. There is also a section for CPA firms to register for anyone searching for him or her. Another section that is very useful is the resource section, which supplies links to government, and financial institutions that may be necessary for research or business.

www.accountant-city.com

This is one of the more interesting sites found. It provides links and contact information to accountants of all kinds, whether they are CPA’s, tax accountants or otherwise. They give you lists of accountants by designation of field or by their location. It gives accountants the option to sign up for free or create their personal space on the site for free.

www.cpasoftware.com

This software website offers help in describing certain accounting software. It includes visual accounts payable and visual payroll examples among others for visitors of the website to try out. It also gives a history of the last 25 years of the high quality software available for accountants. This website is extremely helpful if you are looking to buy accounting software or just to try a visual and see if you like it.

www.findaccountingsoftware.com

This website is very helpful for people/businesses interested in purchasing accounting software. It explains topics such as the future of business automation and criteria for selecting accounting software. The website goes on to explain how more efficient accounting software will help you or your business.

www.macs.com

This was a very interesting website. The mission of this company (NetDotSolutions) is to increase the profitability of small and medium sized companies by providing comprehensive automated information management solutions at affordable prices. It explains also explains how accounting software can be affordable for small-medium sized companies.

Jerry Langdon. "Small business shuns technology." USA Today at www.usatoday.com/life/cyber/tech/ctd506.htm.

This article is very surprising. According to research by the New England Business Service, 65% of small businesses still use accounting systems on paper and books, instead of software. Even more surprising is that there was a 10% drop in computer usage by small businesses since 1996. Also included in the article are assorted accounting figures from these businesses such as collection of account receivables and profitability.

Out of all the resources we found, the best one was A History of Accountancy by Gary John Previts and Barbara Dubis Merino. This book not only explained how computers have helped the accounting world today, but it also tells of how the accounting process has evolved over time. This book is very interesting and informative, we highly recommend it.

Computers have changed the accounting process in many different ways. They have decreased the amount of time it takes accountants to put together financial statements and complete income taxes. Even though accounting software is very popular it is still just as effective to use paper and books. For most small businesses, it does not pay for them to spend a lot of money on accounting software for the amount of clients they have to do work for. The “old” accounting process will get the job done.

Accounting has been around for hundreds of years. Its process has changed immensely over the years. Right now we think computers are the fastest and easiest way to complete the accounting process. In time, we may look at computers as we look at books and papers now. Only time will tell.

This web page designed by:

Miguel Almonte-Solivan,
Lindsay Kulig,
Matt Johnson, and
Doug Verdgeline

November 20, 2000

	Morris, Joseph M. Software Industry Accounting. New York, John Wiley & Sons, Inc. 1993.
		This book was very useful in explaining how to understand accounting, financial reporting, and auditing in the software industry. The book does not explain how computers have changed the accounting process, but it does explain the accounting procedures for the software industry, which is helpful in understanding the correct procedures in which software companies can operate.

	Most, Kenneth S. The Future of the Accounting Profession: A Global Perspective. Greenwood Publishing Group, Incorporated, 1993.
		Most’s book looks at a very unusual often-overlooked question. With the increasing technology today, will computers make accountants obsolete? You may be surprised at how logical some of the questions proposed are. This book makes you look at the other side of the technological advances. Is it really doing more harm than good? This book explains that and many other questions.

	Previts, Gary John and Barbara Dubis Merino, A History of Accountancy in the United States. Columbus, Ohio State University Press, 1998.
		This book gives a detailed history of accounting from 1492 until present day. It explains how technology helped change the profession, by making the whole accounting process more efficient in a shorter amount of time. This book is highly recommended if you are interested in the remarkable history of accounting.

	Weinstein, Grace W. "The Bottom Line: Inside Accounting." Today. Chicago, Nal Books, 1987.
		In Weinstein’s Book, she talks about how the stereotypical accountant is very meticulous and by the book.” This book continues to talk about how technology and computers changed all of that. “CPA’s can develop cash-flow projections and budgets analyses in a matter of minutes, in which used to take days or weeks” (201). Weinstein’s book elaborates on how technology is helping accountants do more than what many people believe to be just doing taxes and audits.

	www.accounting.com
		This site has information for everyone. There are boards for accountants to post resumes and for employers to post wanted notes. There is also a section for CPA firms to register for anyone searching for him or her. Another section that is very useful is the resource section, which supplies links to government, and financial institutions that may be necessary for research or business.

	www.accountant-city.com
		This is one of the more interesting sites found. It provides links and contact information to accountants of all kinds, whether they are CPA’s, tax accountants or otherwise. They give you lists of accountants by designation of field or by their location. It gives accountants the option to sign up for free or create their personal space on the site for free.

	www.cpasoftware.com
		This software website offers help in describing certain accounting software. It includes visual accounts payable and visual payroll examples among others for visitors of the website to try out. It also gives a history of the last 25 years of the high quality software available for accountants. This website is extremely helpful if you are looking to buy accounting software or just to try a visual and see if you like it.

	www.findaccountingsoftware.com
		This website is very helpful for people/businesses interested in purchasing accounting software. It explains topics such as the future of business automation and criteria for selecting accounting software. The website goes on to explain how more efficient accounting software will help you or your business.

	www.macs.com
		This was a very interesting website. The mission of this company (NetDotSolutions) is to increase the profitability of small and medium sized companies by providing comprehensive automated information management solutions at affordable prices. It explains also explains how accounting software can be affordable for small-medium sized companies.

	Jerry Langdon. "Small business shuns technology." USA Today at www.usatoday.com/life/cyber/tech/ctd506.htm.
		This article is very surprising. According to research by the New England Business Service, 65% of small businesses still use accounting systems on paper and books, instead of software. Even more surprising is that there was a 10% drop in computer usage by small businesses since 1996. Also included in the article are assorted accounting figures from these businesses such as collection of account receivables and profitability.