Implementation Of IT In Accounting Systems: Impact On Business Accounting

Aim, Objectives and Research Questions

Accounting has been considered as the language of the business. The role of language to bridge communication. However, accounting plays same role in a business. Therefore, accounting helps in communicating with people and other parties in the market (Aijaz, Aghvami & Amani, 2013). The main goal of accounting is to analyze profit and loss in the business. Accounting deals with acquisition of all business knowledge in the future. These accounting records have been maintained in the traditional method in different companies. However, the implementation of IT in the accounting system has been helping in maintaining a keen approach in development of accounting software. The accounting system is utilized for the purpose of managing the expenses, income and all financial activities within a particular business. This study has been focused on the implementation of information technology in the accounting systems of Atrium Company.

The problems in traditional method of accounting systems have been discussed in the study.  This might help in understanding the issues faced by the company in order to maintain their accounts and cash flow in their operations (Bradford, 2015). Various IT tools have been helping in managing cash flow and fund flow in the management system for maintaining a standard forms in business accounting services. This research is based on the implementation of MYOB accounting software in the Atrium Company. The impacts of MYOB in the company have been critically analyzed. The changes and modifications in operations and strategies of the company after the implementation of accounting software have been analyzed in the study.

The aim of research study is to analyze use of IT solutions for enhancing accounting in business organizations.

Majority of the organizations realized the potential of IT applications and adopt them in order to gain various type of benefits out of them. Experts believes, application of IT in management accounting will offer multiple opportunities in near future which will give the organization competitive advantages as they will be able reach to any customer anywhere in the world (Gippel, Smith & Zhu, 2015). Every enterprise is either extensively or computerized. IT application such as data warehouse and data mining are providing the optimal solution in major industries and this approach will bring automation. The use of the IT solution has been effective in the cost management skills in the company. The use of the accounting system has been helping in maintaining a systematic approach in maintaining the collaborative approach in the management of accounts (Coombes & Nicholson, 2013). According to Smith, IT infrastructures are widely populated all over the world and provide several types of services; as a result small businesses are competing with large business with the accessibility of e business and internet. Several It applications are widely available to adopt and provide several type of service depending on minimal to advanced support (Collis& Hussey, 2013). Multinational organizations have the option to migrate data from different location.  

This approach will ensure the growth of IT application in management accounting. Some experts believes that, students will not only be able utilize the management accounting technologies as required but they will also contribute to the rapid development of IT in management accounting. There is various accounting software that have been using different approaches to maintain the redevelopment of the company in the market. In previous years, Small business were unable to adopt management accounting as they do not have capability to build or develop an in house IT infrastructure as it takes lot of investment. Nowadays, multiple IT solution companies provides off the shelf management accounting packages.

Critical Literature Review

Application of IT management Accounting is adopted by several organization in order to gain multiple benefits and breach the limitations. Studies has found that, the adoption of IT management accounting is able to revoke typical management accounting systems. There are several advantages of the It management Accounting over the traditional management accounting systems. IT management accounting provides accurate and valid data which are very useful in order to select optimal decision (Coombes& Nicholson, 2013). In the traditional accounting, the systems take many weeks to respond proper result. Advanced management accounting has the capabilities to process huge amount of data and enables multitasking to accomplish the desired result (Collis& Hussey, 2013). Such applications have capabilities to offer multiple solutions for decision makers. Advanced management accounting can be constructed to provide remedies and recommendation to management (Edwards, 2013).

Application of IT in Management Accounting has a huge impact on enterprises revenue. However, it has been found that implementing a new Management Accounting technology will not always bring profit (Aijaz, Aghvami& Amani, 2013). With the rapid development and adoption of the IT infrastructure, organizations will be able to gain optimal services which will assist them to manage their accounting process (Isik, Jones& Sidorova, 2013). The management accounting body of CIMA provides business information systems syllabus and useful contents for accounting students. This approach will ensure growth of IT application in management accounting. Therefore, there has been a positive impact in the accounting that might help in maintaining a keen approach to the development if the organization.

The use of the cloud computing have been extending the benefits of the accounting system software in the company.  The cloud computing have been helping in providing various services to the company in order to maintain a keen approach in development of the company in the market. The users have the ability of accessing software applications remotely with the help of Internet connection and networks through the service providers of cloud services. the installation and maintenance of software on the individual computers for executing the accounting process (Aijaz, Aghvami& Amani, 2013). Cloud based IT development has been done in the market by various companies. Some experts believes that, students will not only be able utilize the management accounting technologies as required but they will also contribute to the rapid development of IT in management accounting.

This research has been using proper research methods. Data collection has been an important section of the research study.  Data collection can be categorized into two types including primary and secondary data collection. Primary data collection method deals with the data collection through primary sources and collecting raw data (Gippel, Smith & Zhu, 2015). Secondary data collection method deals with the secondary sources of data collection including online journals, books, articles and government database. In this research, data has been collected from secondary sources of Atrium management in respect to implementation of IT solution in the company. The analysis of research has been done in an organized manner for developing outcomes from the research. A systematic approach has been done in the research in order to maintain a keen approach to the outcomes of the research.  The use of the secondary method of analysis has helped in providing data and information from recently published journals (Gregor& Hevner, 2013).  Therefore, recent data might help in calculating error free outcomes in the study. The analysis of the data and information has been done using qualitative data analysis. There have been themes created based on the implementation of IT for enhancing accounting in business.

Potentials in the accounting system

The research has able to follow ethics and values in the study. Data and information has been kept safely and no data is published out until the study is completed. Data has been collected online journals, articles and database of Atrium (Gregor& Hevner, 2013). Therefore, all journals are published after 2012. Therefore, validity and reliability of data and information has been maintained. Qualitative data analysis method is chosen for this research project. The collected data is analyzed in findings and analysis section. The use of the Data Protection Act 1998 has helped in protecting data and information used in the research. The use of the IT tools has been helping in enhancing accounting systems of the company in the market.

Data has been collected from secondary sources and management of the Atrium. Therefore, secondary data analysis has been dined to analyze data and information collected. Themes have been created for analysis data and information.

Theme 1: Does IT solutions helps in improving accounting in business?

IT sector have been helping in enhancing accounting in business. The use of the information technology accounting software has been maintaining a keen approach in development of the company. IT services providers have been looking for a change in the market to the business implementation.  The use of accounting software has been helping in providing various facilities in the market. The utilizing of accounting software has been helping in monitoring a keen approach to the development of the company in the market. The use of internet in the business organization has been helping in providing basic approach to development of the organization (Coombes & Nicholson, 2013). The digitalization process of the computer has been maintaining virtual approach to the beneficial of the company in the market. The enterprise accounting has a major impact on the business processes. The first and the foremost business functionality with accounting software solution is the financial management. Moreover, the inventory controls, payroll management, human capital management as well as order and purchases are also included in this scenario.

The budget and forecasting is easily calculated with such software and the accounting is improved in businesses. Various service providers have been helping in developing the company over the internet (Gregor & Hevner, 2013).  The use of the IT solution has been effective in the cost management skills in the company. There are various accounting software that have been using different approaches to maintain the redevelopment of the company in the market. With the accounting system, the several modules could be easily and promptly integrated. This provides a unified platform for the business processes and accounting and hence making the business work smoothly and seamlessly. The use of the accounting system has been helping in maintaining a systematic approach in maintaining collaborative approach in the management of accounts. The analysis of research has been done in an organized manner for developing outcomes from the research. Security is quite high in this type of software and thus accounting could be easily improved. The use of the secondary method of analysis has helped in providing data and information from recently published journals.  Therefore, recent data might help in calculating error free outcomes in the study. There are various companies that have been providing cloud computing services in the market including Amazon Web services and Salesforce. These companies are liable to provide cloud computing services to other companies. Cloud computing is used in storing financial data and information over the internet.

Application of IT management Accounting- benefits

Theme 2: Does mitigation of Issues in accounting process helps in improving accounting in business?

Accounting process has been helping in maintaining the cash flow in the company. This help in providing proper accounting information in the company. However, there have been some issues in the accounting systems of the company. The issues have been rising in the accounting systems as there have been due to delayed in payment details and momentary flow.  The most significant issue that occurs within the accounting process is while journalizing the transactions (Laudon & Laudon, 2015).  This specific issue is required to be resolved without any type of delay. The use of several late payment fees and decrease in the credit worthiness by losing suppliers is the second important issue within accounting process. However, it has been found that implementing a new Management Accounting technology will not always bring profit. There have been various issues in the accounting system including evaluation of cost in business (Schmarzo, 2013). A systematic approach has been done in the research in order to maintain a keen approach to the outcomes of the research. The cost that needs to be invested in the business has been a major problem in the business. The lack of cash flow is the next vital issue that is often faced by several organizations in an accounting process.

As discussed in the previous literature review, the use of the IT in the accounting systems has been beneficial for the company in the market. There have been various benefits of the IT in the accounting systems in the company. Various IT tools have been helping in managing cash flow and fund flow in the management system for maintaining a standard forms in business accounting services. This research is based on the implementation of MYOB accounting software in the Atrium Company. This particular company has the ability of accessing the accounting software of MYOB irrespective of the time and location. Moreover, the productivity is also enhanced with this software. MYOB accounting software provides high speed of input and hence the manual accounting processes are automated. This has helped Atrium Limited to save their valuable time and money. The impacts of MYOB in the company have been critically analyzed. The use of the MYOB has been helping in maintaining a proper approach in the accounting system (Tappura et al., 2015). MYOB software has even provided accuracy in the data and thus the financial management has become effective and efficient. They are able to eradicate the outdated and manual processes. This software has built in controls for detecting and removing the duplicate entries as well as redundancy errors. MYOB software even ensures to provide updates within real time. The reduction of costs in the operating systems, accounting fees and hardware is another important benefit that Atrium Limited has got from MYOB. The problems in traditional method of accounting systems have been discussed in the study. This might help in understanding the issues faced by the company in order to maintain their accounts and cash flow in their operations. Various IT tools have been helping in managing cash flow and fund flow in the management system for maintaining a standard forms in business accounting services.

Impact of IT on accounting

Experts believed that, IT will have the future of IT application in the management accounting will be defiantly an area to keep an eye on (Gippel, Smith & Zhu, 2015).  With the rapid development and adoption of the IT infrastructure, organizations will be able to gain optimal services which will assist them to manage their accounting process. Any type of message, which makes uses of a written word, is termed as the part of written communication in accounting. This type of communication is considered as one of the most important and effective mode of all modes of business communications (Chang, 2016). The management accounting body of CIMA provides business information systems syllabus and useful contents for accounting students.

Conclusion

Therefore, from the above discussion, it can be concluded that the use of the IT in accounting in business have been helping in maintaining a proper management in company. This information technology is the significant computer based tool or technology that is utilized for working with information and supporting the information processing requirement of the organization. The use of IT has been beneficial for the accounting services in the company. With the rapid development and adoption of the IT infrastructure, organizations will be able to gain optimal services which will assist them to manage their accounting process. The management accounting body of CIMA provides business information systems syllabus and useful contents for accounting students.

Modern era of business has been processed by the use of information technology in the market. Accounting systems have been playing an important role in the development of the company by managing the accounts and cash flow of the company. Accounting systems have been helping in keeping a track of financial report of the company. This system is required for an entity responsible to third party to ensure funds are provided properly to the clients or any third party. It is a method by which the balance sheet and cash flow procedure have been analyzed in the company. Proper expenditures have been recorded in the accounting systems with regards to each funds provided in the company. Accounting systems have been helping in maintaining all the business expenditures and investments in the market.

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