Wolters Kluwer

Posted: December 2nd, 2013

Wolters Kluwer

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Wolters Kluwer

Summary

            The field of accountancy with regard to technology continues to evolve as technology continues to improve. The article, “Accounting profession at tech tipping point, Wolters Kluwer exec says” by Jeff Drew, suggests that emerging technologies such as cloud computing, mobile telephony, social media and big Data have made an impact on the accountancy field. This claim has been backed up by a survey that was carried out by a software provider, CCH on over 400 United States accountants. The belief is that each of these technologies individually has a huge potential for phenomenal impact on the profession. However, a greater impact could be achieved if these technologies were to be brought together. These technological advancements have the capability of bring professional accountants closer to their clients boosting these partnerships. The survey also found that about 64% of all companies making moves toward technological investments considered technology high priority. The article therefore suggests that these technological advancements are necessary for the accountancy field to move to the next level. It is therefore safe to conclude that these advancements have the capability of revolutionizing the field.

Analysis

            To explain how these technologies will revolutionize the accountancy profession, It is important to note the milestones that have been achieved in other business field because of technology. In his sense, technology accords the accountancy profession the possibility of improving service deliver in the accountancy profession. The survey conducted showed that about 87 % of accountants surveyed believed in the ability of technology to enhance performance in the profession (Drew 2012). Accountancy is inherently a very engaging and busy profession. With the emergence of smart phones and a more recent advancement, the tablet, it is very easy for individuals to work from anywhere. The use of these gadgets has been enabled by what is referred to as cloud computing (Golden 2011). This is where the internet is used to run relevant applications in accountancy and even store data. These technological advancements could be the solution to ridding the profession of paper work. Mobile devices also allow accountants to serve their clients regardless of where they are (Hall 2011). This has enhanced collaboration with clients. Cloud-based applications have been able to create a cheaper and more effective way for data centralization and data sharing. This has increased visibility in accounts and has improved collaboration.

The accountancy profession has also seen a boom in the social media arena. Most professions have taken to social media networks as a means of meeting new clients and making themselves known incase of employment opportunities. LinkedIn for example, is a leading networking tool for all professionals including accountants. The relevance of these sites does not only lie in social interaction and entertainment factors. Social network sites can be used as business platforms. Where professionals such as accountants can be able to share knowledge, generate business ideas, finding new clients, and interacting with other accounting professionals among other things (Drew 2012). In the age of technological advancements, teamwork and collaboration are increasingly becoming a necessity. Through social networking, this is possible without the requirement of physical presence of a person.

Big Data refers to the ability of technological capabilities to process big data files. It is no secret how such technological applications could have an impact in making accounting processes easier. Database applications such as Excel enabled accountants to make computations faster and easier compared to the manual systems that were experienced in the past. Today, there are even more advancements where data can be squeezed and analyzed faster than ever before. In this sense, technological advancement cannot be undermined in any way with regard to how effective it is in assisting accountants in their work.

Big Data also increases accessibility to more data making it a very vital asset for organizations. The enormous capability of Big Data raises a crucial factor where data used must be presented in a way that could be easily comprehended (Drew 2012). However, with current presentation techniques and data conversion tools, presentation is simple (Franks 2012). Therefore, data can be compressed and simplified. This makes it easier for accountants to present their information in a satisfactory manner. In this sense, the future of Big Data has the potential of adding grater value to the clients it serves.

The increase in technological advancements in the field of accountancy is to develop internal controls within organizations where accounting information systems play a major role in tracking accounting activities. The use of social media, cloud computing, mobile devices and even Big Data are aimed at complementing internal control measures. This is because with the use of these technologies, it is easier to keep watch over the operations of accounts. It is also easier to update clients on progress with regard to their financial affairs.

To conclude, it is necessary to point out that the role of social media, cloud computing and mobile devices among others have the capability to revolutionize the accountancy profession. The Wolters Kluwer survey has been effective revealing the potential of each of the mentioned media. It is up to the professionals in accounting to incorporate the use of these media to ensure that accounting information systems are better that than what they currently are.

References

Drew, J. (2012). “Accounting Profession at tech tipping point, Wolters Kluwer exec says”. Journal of Accountancy”. Retrieved from http://www.journalofaccountancy.com/News/20126801

Franks, B. (2012). Taming the big data tidal wave: Finding opportunities in huge data streams with advanced analytics.

Golden, M. (2011). Social media strategies for professionals and their firms: The guide to establishing credibility and accelerating relationships. Hoboken, N.J: Wiley.

Hall, J. A. (2011). Accounting information systems. Mason, OH: Cengage Learning.