How Technological Advances Benefit and Challenge Financial Accounting and Managerial Accounting Data Security

How Technological Advances Benefit and Challenge Financial Accounting and Managerial Accounting Data Security
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How Technological Advances Benefit and Challenge Financial Accounting and Managerial Accounting Data Security
Executive Summary
The principal purpose of this report was to show how technological advancement can change the way in which companies do their business, mainly how firms control accounting data. There are various benefits that technology brings in accounting. However, some challenges influence businesses negatively.
The findings show that automation of accounting processes is essential because the production of accounting documents has become more comfortable. Organizations can produce critical financial statements efficiently. Besides, financial information is displayed in the respective books of accounts or journals instantly, which prevents mistakes made through manual systems and ensures there are integrity and consistency. One of the challenges found to affect the computerized accounting systems is the viruses, which pose a problem of producing information that is not accurate. Outsiders can hack information and employees can have unauthorized access, which is a threat to the security of the data.
Introduction
Accounting is the art of keeping records, organizing and summarizing business transactions and activities which are, in part at least, of monetary character, in the form of dollars, and in a substantial way, and in interpreting the outcomes thereof. According to Tepalagul and Lin (2015), accounting is an information system that measures, processes, and gives out an economic unit's financial information. Improvements in information technology have enhanced accounting structures and changed economic life. Digital technologies that include computers have increased the productivity of offices enabling the quick exchange of documents, collaboration with business associates, research, and the gathering and evaluation of data.
Accounting processes have experienced changes lately due to development of accounting technology. Accounting technology allows certified public accountants to manage financial statements and carry out accounting procedures using computer program applications (Ismail and King, 2014). Companies identify the accounting computer software applications as financial management program or accounting software, which are useful in tracking business transactions, computing income taxes, classifying income and expenditures, expediting payment of bills, evaluating investments, and generating financial reports.
Technological developments can alter the manner in which businesses function, which includes how the firms handle accounting information. According to Guragai, Hunt, Neri, and Taylor (2015), computerized accounting systems simplify accounting procedures while efficiently keeping financial data for a corporation. In spite of the benefits, technological know-how in accounting has disadvantages and challenges that can negatively influence business. Being conscious of those concerns allows company managers to act on them before they develop into more significant problems.
Main Body
There are two types of accounting software. The account...