Information technology and the accountant today: What has really changed?

Abstract

One of the major advancements in information technology (IT) is the use of IT tools to perform accounting functions and processes. In this paper, we provide discussions on how IT has affected the accountancy profession. We argued that the traditional duty of accountants is the preparation of financial statements, and consequently, several tasks are carried out throughout that function. In the pre-IT era, accountants were faced with delays in transaction processing and reporting, continuous errors and misstatements, and difficulty in storing large data on papers. However, following the emergence of sophisticated IT tools, accountants in the IT era are now able to prepare and present financial statements more timely and accurately. The availability of the internet has also increased access to financial reports by external users. This paper further argues that in light of the continuous advancements in IT, future accountants and accounting processes are likely to; be cloud-based, communicate with and through Artificial Intelligence machines; invest in Big Data and cyber-security, and explore the potentials of Virtual Reality and Augmented Reality in meeting users' information needs. Hence, accountants and accountancy firms are advised to embrace new IT skills and tools, and keep up with technological trends.