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 20^th 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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3. Main branches of accounting and job skillsets and competencies

Branches of Accounting: Financial Accounting: Controls the financial recordings and the transactions that took place in the firm through financial statements and provides it to the interested stakeholders for decision making process. Management Accounting: Management accounting provides information for use by internal use, that is the management of the company to produce budgeting and forecasting, cost analysis and make decisions accordingly. Cost Accounting: Treated as a secondary management accounting, it refers to the recording, presenting and analyzing of manufacturing costs, every cost that took place during the manufacturing process is recorded, standards and principles that help organizations to come up with budgets for controlling costs in a cost-effective manner (Neha de, 2022). Skillsets: Analytical skills: Accountants must consist of profound financial records to make sure that every attribute is up to date. Otherwise, their analysis ...

1. The purpose and scope of accounting in complex operating systems

Accounting helps an organization to achieve its goals and objectives by collecting, classifying, and communicating the relevant information with the stakeholders about the transactions that took place within the firm during a specific period in the organization. The scope of financial accounting is to assess on asset formation, economic and financial stability, and legal economic relationships in the business environment. It reflects on the objective for the preparation of financial statements . Accounting is the backbone of a business. All businesses have basic data that is recorded with the role of finding the organizations financial stabilization. Simply, even though accounting is not business, it is a vital part of the business environment. The role of accounting in the current economy is a vital one, as is the purpose of accounting in modern business to understand the financial position and to know if the organization is receiving an adequate profit (Hai Thanh Nguyen, 2021).

2. Critical evaluation of the accounting function in informing decision making and meeting stakeholder and societal needs and expectations

Accounting helps in decision making by disclosing the relevant information to the interested parties. By this the managers finalize on the sort of information given to them for the decisions they must make. this is done through an internal financial statement to identify profit maximization opportunities for the company's controlled growth, financial accounting is crucial to any sort of financial decision making. The reason why the accounting information is vital in decision making process of an organization is to inform the higher-level managers in charge of making decisions for any potential risks and losses that they should be aware of and to prepare for any surplus or deficit for an organizations financial state. The accountants play an important role when it comes to making decisions as they understand the bigger picture from past and future benefit to the company, that is why performing accounting functions is important in decision making. Owners and Managers Once prepared ...

THE ROLE OF ACCOUNTING IN AN ORGANIZATION

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