The Effect Of Big Data On The Field Of Accounting

Beyond the different software companies used for Big Data Analytics, there are other ways that Big Data affect the accountancy profession. A major effect on the field of accounting is the law that takes place while the processes are amended to adapt to the current technology age. Overseers such as: FASB and the SEC have certain laws and regulations that alter the way accountants perform the assigned tasks required by their profession. In addition to adding unprecedented rules, FASB and the SEC may make accounting grueling, especially for newcomers to the field, concurrent to the modern regulations. One of the many amended/added rules to accounting was the alteration of leases on the balance sheet. According to a blog by Jason Bramwell on Accountingweb, the new rule on leases requires “companies to report most leases on their balance sheets and puts an end to the off-balance-sheet reporting of assets and liabilities related to the rights and obligations created by operating leases” (Bramwell, 2016). Although this change to the rule is general, it affects Big Data and Analytics. While firms and manufacturing companies begin to adapt to the change, this effects the thousands of leases …show more content…
Although Big Data has many benefits, there are many issues and detrimental effects that happen with it. Fraud and data loss are two examples. However, as Big Data changes, so do the laws behind it. While the unprecedented amounts of Big Data comprise a huge part of the accounting profession, it will be a long time before assimilation occurs; furthermore, on a global scale, familiarization will never fully develop with Big Data. There will always be software that assists consumers, managers, and associates at companies/firms, various benefits and solutions to the current problems, many firms conforming to the rule changes and adapting; yet, the world