Ewa Filipek (1128000)
Assignment 1
COMM 226
Section XB/1, Summer semester
Instructor: Dennis Kira
The use of ICT in accounting
This report explores the use of information and communications technology (ICT) in accounting.
The study examines on what and how ICT have had and will have impact on how tasks are
performed by accountants, especially by Certified Accountants and their role within the
workplace.
My career interest was long ago identified. Not only I decided to work in accountancy, I am
planning to become a Certified Accountant. I am already taking major steps to help me become
one. I am studying accountancy at Concordia University, as well as I am part of the Co-op
program where I am given the chance to gain experience while working in the areas related to
my major. I also understand how important is to be familiar with Information and
communications technology (ICT) concepts.
According to Elliot (1992), ICT has long been heralded as a crucial element of both professional
accountancy and accounting education. However, ICT seems to have a huge importance not only
in accountancy but in many other professions, as well as in everyday life of most individuals.
The use of ICT in work situations is widespread. In fact only few workers do not use any form
of ICT in their job (Steijn & Tijdens, 2005). The percentage of employed using computer has
increased significantly over the years. Such situation helps businesses to work more efficiently
and save money. For most knowledge workers each day starts by using ICT. They check
emails, login to the company intranets and use Internet on regular bases. In addition, all office
workers use traditional computer based technology. As a result, computer usage is necessary for
work to be done.
As for key terminology is it worthwhile to provide a definition of my chosen profession. An
accountant is a professional who handles financial records and tax preparation for individuals,
small businesses, nonprofit organizations, government agencies or large, for-profit corporations.
An accountant is responsible for maintaining General Ledger accounts and preparing monthly,
quarterly and annual financial reports. In addition to processing payments to vendors and
comparing actual expenses to budgeted costs, an accountant is responsible for investigating and
resolving any errors posted to the General Ledger, as well as reconciling accounts each month
(Keefer, 2012).
On the other hand, Certified Accountant along with a college degree must pass a rigorous exam
in order to be licensed by the state in which they practice. However, no matter what accounting
position one held, the work is closely related to ICT. There are great advantages of using
computer in an accounting. One of them is speed and easiness of data entry. Companies no
longer record data on papers. All is done using automated systems. At a moments notice,
balance sheet, income statement and all other accounting reports can be received. The higher the
position, the more is required to know, meaning that accounting professionals, such as: Certified
Accountants are obliged to posses extended knowledge concerned with ICT. According to
International Accounting Education Standards Board (2007), professional accountants are
required to have knowledge of more complex IT related areas, such as information systems
design, information systems management, and control and information systems evaluation.
Besides, all IT related professions along with accounting need employee trainings to meet
requirements of fast evolving technology. Depending on the type of business, CA might be
responsible for budget analysis. In order to analyze such data, the accountant has to be an expert
in using necessary accounting applications, as well as common spreadsheets. A further data
representation requires knowledge of using the latest companys technologies, such as: different
presentation applications. In order to provide a client with an investment planning advice, CA
first searches for an accurate information using Internet. Apart from the already acquired
knowledge, he/she needs to know where exactly to look and how to make the most of it.
Undoubtedly, ICT facilitate all tasks of work done by accountants. As mentioned above, the
speed plays an important role for businesses. Reports are done only by using different computer
applications and exchanging the information already recorded. For presentation purposes, new
softwares are available to present data in a different, friendlier manner. In addition, being CA
requires decision making. Information and Communication Technology (ICT) is contributing
significantly to address the need of decision makers (Awwal, 2009). Organization success
depends on it that is why the latest and well organized data is crucial. Simply put, it is just a
matter of an effective use of ICT.
Moreover, ICT does not only satisfy professional needs of workers but as maintained by some
ICT has a huge impact on peoples personal and social life. Many individuals say that they
cannot imagine life without a Facebook for example. How about other ICT inventions? By using
connectivity one can easily speak to someone living on different continent without any costs. In
addition, humanity got used to mobile phones. Texting is another way of communicating. Often,
computers are the main source of entertainment and enjoyment. Either we connect with others to
socialize over the Internet or simply spend time alone at home playing games. Simply put,
technology made our lives easier, not only by the possibility of having ready-to-use information,
but also by saving our time at work and at home. There is an increasing tendency of online
payments and shopping, lets not forget about online dating. We tend to rely on ICT in most
aspects of our daily lives without even knowing it.
Finally, ICT along with its IT component plays an important role in accounting because it
improves the capacity of accounting research and provides specialists with extension to organize,
store, retrieve and exchange accounting information. It helps to evolve mechanism of
information sharing, as well as it develops accounting database for easy access and data base
decision making. At last, IT makes it easier to generate reports and perform year end closes
(Accounting Education, 2009).
Works Cited
Accounting Education. (2009, October 26). Retrieved 2012, from
http://www.svtuition.org/2009/10/role-of-information-technology-in.html
Awwal, A. (2009). Role of ICT in Decision Making. KRIBHCO, Noida: Additional General Manager.
Board, I. A. (2007). Information Technology for Professional Accountants. International Federation of
Accountants.
Elliot, R. (1992). The third wave breaks on the shores of accounting. Accounting Horizons , 6 (2) pp. 61-
85.
Keefer, A. (2012). eHow Money. Retrieved May 2012, from eHow Money Web site:
http://www.ehow.com/how-does_4695746_accountant-spend-workday.html#ixzz1vEbjo6dP
Steijn, B., & Tijdens, K. (2005). The use of ICT in the workplace: opening the black box. The Knowledge
Society and Changes in Work (p. 2). The Hague.
