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4. Accounting systems and the role of technology in the modern-day accounting


An accounting system consists of accounting processes with merged course of actions. The purpose of an accounting system is to record business transactions, summarize those transactions and produce a collection of data to create reports that can be used to analyze for decision making process of an organization.

An accounting system includes the major functional areas of an organization, including the purchases and sales, payments, and receipts. The elements that make up an accounting system are assets, liabilities, capital, income, and expenses. These elements are used in a systematic manner to calculate the profits of a business.



Technology has revolutionized the accounting industry. At the early stage of accounting, accountants had to use the calculators and had to do majority of the calculations manually. Due to this the accounting records were inaccurate and had many errors to rectify again and again. The introduction to the computer-based accounting technology impacted the accounting process positively as the accounting software’s were identified to make an accountants work much easier.

By the end of the 20th century, AI companies came up with the IT developed spreadsheets instead of using ledger folios and handwritten accounting sums. Currently accountants can easily access software’s that enables them to automatically calculate the equations, this ensured the accountants to primarily focus on the main objective and come up with decisions relating to it quickly. This disqualified the need to manually perform the functions of accounting which was at a higher risk for mistakes. With the modern technology it could be simply done by collecting information into a database (Rubino, 2022).










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