The Importance Of Technology In Accounting

It has been universally hailed for centuries that accounting is defined as the systematic recording, reporting, and analysis of the financial transactions for a business. Accounting takes into huge consideration the bookkeeping methods involved in making the financial records of any business transaction. The preparation of such records hones in on the accounting equation and the operating results of a business, regardless of the form of business it may be. Furthermore, it is of the utmost importance to mention that technology has advanced tremendously within the last couple of decades. The development of technology has been inherent to human progression, and it has affected basically all features of life. The accounting profession has not had the fortune to escape this influence

“The world has become reliant on computers and digital personal and business information. This has exposed individuals, organizations and entire countries to significant threats” (10). Security of information sent electronically throughout cyberspace is a major concern. Theft of credit card information and breach of privacy are substantial threats to a corporation’s overall operations, standing, and reputation. Accountants will certainly need to use their insight and experience to adapt to the current and future payment systems. They will also need to identify and mitigate risks correlated to cyber fraud. “Theft of digital information has become the most commonly reported fraud, surpassing physical theft” (10). Businesses, individuals, and consumers all similarly have a slew of ways to make accept payments for goods and services. The growing use of portable devices like smartphones and tablets exposes the vulnerability to such cyber frauds. And as technology becomes more sophisticated, so do the people who actually use it, and they take advantage of unsuspecting victims in so many divergent