Information Technology Impact On Accounting

This study examines the effect of information technology on accounting system and employment. This study was done by adopting the questionnaire method as a data collection method. The questionnaire results were validated by experts. The major key findings of this study show that, the positive effect of information technology outweighs the negative effect on both accounting systems and employment.

CHPTER ONE

INTRODUCTION

1.1 Background to the Study

In the late 70’s the age of accounting software’s started by the first spread sheet software VisiCalc, followed by Peachtree which made it possible for companies to compurize their accounting , in the 80’s accounting software’s became part of millions of businesses.

Despite the advantages

Effect of information technology on accounting efficiency.

2. Effect of information technology on accounting efficiency.

3. Check information technology creates employee redundancy

4. Check if information technology creates job opportunities

1.4 Research Questions

The following research questions will guide the study.

1. Is accounting efficiency an impact of computer technology on accounting system?

2. Is accounting accuracy an impact of computer technology on accounting system?

3. Is employee redundancy an impact of computer technology on accounting system?

4. Does computer technology create employment?

1.5 Significance of the Study This study will highlight the advantages of adopting accounting information systems (software) and positive impact on the accounting processes and business in general. It will also highlight the importance for accountants and accounting students to increase their knowledge of information technology and accounting information systems to increase their recruitment chances.

1.6 Scope of the Study

This study is concerned with the effect of information technology on accounting and

It functions as an accounting information system.

Accounting software is typically composed of various modules, different sections dealing with particular areas of accounting. Among the most common are:

Core modules

Accounts receivable—where the company enters money received

Accounts payable—where the company enters its bills and pays money it owes

• General ledger—the company 's "books"

• Billing—where the company produces invoices to clients/customers

• Stock/inventory—where the company keeps control of its inventory

• Purchase order—where the company orders inventory

• Sales order—where the company records customer orders for the supply of inventory

• Bookkeeping—where the company records collection and payment

Non-core modules

• Debt collection—where the company tracks attempts to collect overdue bills

• Electronic payment processing

• Expense—where employee business-related expenses are entered

• Inquiries—where the company looks up information on screen without any edits or