The Importance Of Information Technology

985 Words 4 Pages
Information Technology
Technology has revolutionized the way businesses operate today. How are businesses able to sustain efficiency in production, finances, information, and other important things? The answer to that is Information technology. Information Technology encompasses many tools that enable storage, processes, captures, exchanges, and utilization of information. IT has served managers in an unimaginable way you can think of. For instance, IT consists of several elements, such as, software, databases, computer hardware, networks and related equipment that enables managers to prioritize, evaluate, and execute decisions.
Essence of Software
As an accountant, it is pretty difficult to keep records of payables, payrolls, receivables,
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Becton Dickinson hired me as an accountant that deals with subsidiaries, acquisitions, financial statements, taxes, overhead, invoices, journal entries, etc. I work with plenty of customers worldwide. How is that possible? SAP has an immense database filled with customer names, vendor names, addresses, account numbers of the customers, general ledger accounts, purchase orders, list of inventories, and more. Graciously, I have learned to do provide outstanding services using SAP. SAP is driven by using transaction codes, also known as, T-codes. For example, in accounting we deal with general ledgers, accounts receivables and payables, banks, and fixed assets. To post a journal entry you must determine the type of transaction and the components of the entry like your debits and credits. For instance, suppose you are owing money to a customer from Shanghai for billing an invoice twice, the components that you would be using is a credit to the customer account and debit to the general ledger account from a receivables point of view. Therefore, the appropriate transaction code for posting a journal entry would be FB01 as seen below in Figure 1.1. The transaction code for fb01 consists of posting keys, account numbers, amounts, cost centers, profit centers, business areas, …show more content…
According to the information technology website, “Businesses with SAP systems in place tend to produce much greater productivity among their employees and various departments.” I am a testament to that fact. As I mentioned in the beginning, numerous of transactions occur on a daily basis in different departments. The beauty of SAP system is that there is no need for unnecessary data entry within different software programs. Businesses who don’t utilize SAP are most likely relying on various software that is most likely restraining the business management to see the big picture. Significant cost savings is an important factor for a business. SAP has the benefit of increasing your cost savings simply by keeping track of all the company’s data in one

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