Information technology (IT for short) has created significant benefits for the departments of accounting. Computer networks and Information technology systems have shortened the time needed for accountants to prepare and present financial information to management and shareholders. It has not only cut the time required, but also improved the overall efficiency and accuracy of the information.

Impact of Information technology on accounting

Computerized accounting systems

The biggest impact that IT has on the accounting is the ability of companies to develop and use computerized systems to track and record financial transactions. Paper books, the manual spreadsheets and hand written financial statements have been translated into computer systems rapidly presented individual transactions in financial reports. Most systems accounting popular can also be tailored for specific industries or companies. This allows companies to create and enjoy making management decisions individual reports. Additionally, you can make relatively easy to reflect any economic change in business operations changes.Increased functionality

Computerized systems for accounting have also improved the functionality of the departments of Accounting increasing the timeline of accounting information. Improving these timelines financial information, accountants can prepare reports and analyzes of operations that give management an accurate picture of current operations. The number of financial reports has also been improved with computerized systems, the cash flow statements, profit and loss by departments and reports of market share are now more accessible to computer systems.

Improved accuracy

Most systems of accounting are computerized screening measures and internal balance to ensure that all transactions and accounts are properly balanced before preparing the financial statements. Computerized systems also allow daily entries are out of balance when published, ensuring that individual transactions are properly recorded. The accuracy is also improved by limiting the number of counters that have access to financial information. Less access ensures that financial information is adjusted only by qualified supervisors

Faster processing

Systems accounting computerized counters allow to process large amounts of financial information, and do so quickly through the system. Times faster for processing individual transactions have also decreased the amount of time required to close each period accounting. Periods of monthly or annual closing for taxes can be highly absorbent in the departments of accounting, which results in longer hours and higher labor costs. Shorten this time period helps companies to control costs, increasing overall efficiency.

Best external reporting

Reports required for outside investors and shareholders have been improved by systems of accounting computed. This allows investors to determine whether a company is a good investment for growth opportunities and has the potential to be a high value company. Companies can use these investors for equity financing, which used to expand business operations.