The Use of Information Technology in Accounting

Intro
In this day and age, it is almost unthinkable to perform accounting functions without the help of information technology (IT). Accounting dates back to 3600 BC when the oldest business event was recorded and there is evidence accounting systems were utilized in ancient Greece, China, and Rome (Knežević, Stanković, & Tepavac, 2012). Managerial accounting is a relatively new function of accounting and provides information such as capital investment status, payback period, planning and controlling, budget, etc. to internal users and decision makers (Moorthy et. al, 2012). With managerial accounting having such an integral role in an organization it makes good business sense to integrate the two. Since managerial accounting plays such a major role in planning, controlling, and decision making activities, the faster and more accurate the data is, the better. Objective and timely information is important to the economic efficiency of business and is supplied by the accounting department or system. The ultimate goal of the application of IT in managerial accounting is to gain a competitive advantage (Moorthy et. al, 2012). The primary objective is to collect and record data and information on information and events that have an economic impact on organizations and the maintenance, processing, and communication of information to internal and external stakeholders (Christauskas & Miseviciene, 2012).
Information technology (IT) is a tool that plays a major role in helping a business be more efficient and successful (Moorthy et. al, 2012). IT has reformed traditional accounting and has enabled growth of processed accounting information, reduced the amount of routine functions by automating them, and made information available fas...

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...ts to revenues as incurred.
Kai Peters of Ashridge Business School believes that by 2022 accounts will be providing more insight-based information and there will be a greater need for strategic accounting expertise. Sean Wilkins, CFO Tesco Malaysia, predicts more accountants as business partners, development of insight, not data, and more of an influencing role than reporting. Bill Schneider, CFO Kansas City Chiefs, believes the future will have more of a demand for more information, right now will lead to more emphasis on process skills, preventative controls, and anticipating customer/investor/client needs. Finally, Bill Schneider, director of accounting AT&T, predicts the CFO will continue to be more involved in advising and strategic development and planning and that the role will evolve into a strategic, analytical, forward-thinking position (Doherty, 2012).