Accounting - Research Paper Example

These systems can also differentiate between value-added and non-value added costs, offering cost accountants the chance to change them to value added costs (Jordan, 1999). In the past, accounting was done manually but now-a-days, data is entered via computers and wide area networks. No doubt, technology has changed the ways of accounting but it is still not sure whether this effect is positive or negative because it can be an asset for a business but a liability for the accounting profession.

There are many advantages to the use of technology in managerial accounting. Different technology tools offer clear advantage over traditional system of accounting. For instance, these tools help through computer-integrated production, communications technology, image processing, the Internet, and expert systems. These and other various IT tools help in getting relatively varied and correct information in a regular way, but at the cost of confidentiality (Jordan, 1999). Managerial accounting is highly impacted by the sophisticated technology solutions, such as enterprise resource planning systems (ERPS).

Corporate management is pro-oriented in adopting these IT solutions, although they are not fully aware of their practical outcomes in managerial accounting for corporate management. It is observed mostly that latest management accounting processes, and even the old techniques, such as annual budgeting are activated in different systems (Gradlund & Malmi, 2002). Technological tools add to the level of efficiency in the transferring of data between corporations and their various branches, offices, clients, and the accounting companies too.

Communications technology employs a group of technologies to transfer data in different forms to all the entities. This specific type of technology is of great significance for big accounting firms, because of its increased communications strengths, facilitating