Applications of CIT in Accounting Accounting records Most firms have accounting software packages to help produce statutory accounts and reports for bankers and management, as well as to help with the day-to-day control of its finances. Which also has modules to manage, for example, payroll and debt factoring facilities. The main components of an accounting system would include modules like; invoice Bought ledger (trade creditors) Sales ledger (trade debtors) Bank reconciliation Cash flow forecasts Producing draft accounts and trial balances Spreadsheets
Widely used by finance departments to help manage cash flow, for bank reconciliations and in credit control. Any department holding a budget for expenses and/or revenues would typically use a spreadsheet to help create the budget In the first place, and then to monitor Incomes and expenditure and any variances. Credit control Remember the work in Unit 1, looking at managing cash flow? Well, much of this work can be made much more efficient with computerized credit control.
As businesses typically buy from and sell to other businesses on credit terms, it is essential to have p to date and accurate Information about which creditors need to be paid, and when money Is due from debtors. Banking & payments Businesses are able to take advantage of electronic banking which allows them to check their bank account records in real time – saving time and helping ensure that payments due have been made and received, and also to operate the bank account within any agreed overdraft limit.
Again, even quite small businesses are now using this technology, and portable EFFETE devices have made it feasible to use in places such as taxis and restaurants Information Technologies significantly affect human as well as other animal species’ ability to control and adapt to their natural environments. The human species’ use of technology began with the conversion of natural resources into simple tools. Information technology (IT) has created significant benefits for various profession as well as deferent aspect of the world economy.
The application of the networks system has shortened the lead time needed by accountants to prepare and present financial information to management and stakeholders. Not only has IT shortened the lead efficiency and accuracy of the information. Advances in Information Technology (IT) have transformed many firms in professional services industries, but perhaps none as much as those in the public accounting industry.
Once a slow-paced and conservative industry, public accounting underwent tremendous changes at the turn of the millennium, sparked largely by the rapid changes in its IT environment. Audit software and knowledge-sharing applications are two crucial components of these changes. Automation of audit tasks and use of specialized audit software has bustiest IT for labor and changed the structure of audit teams.
Equally important is the use of advanced systems to share knowledge bases across different parts of the organization that has enabled professional services firms to leverage their human resources more effectively With rapid advances in IT, numerous articles have appeared in practitioner-oriented accounting Journals that discuss how to invest in IT to keep up with the current technology (. The pace of change brought by new technologies has had a significant effect on the way people live, work, and play worldwide.
