Technology And Technology: The Effects Of Technology In Accounting

Register to read the introduction… Both of these authors address that many of the most important uses of computers today concern the following: tracking orders, inventory, and accounts. Improvements in technology have reduced coordination costs and led to the replacement of technology for the human coordination. Though this change has discontinued many clerical jobs, it is simply the first-order effect on technological advancements. An important second-order effect has been the demand for more coordination. In many cases, the second-order effects of increased demand have overwhelmed the first-order effects of substitution. For example, positions have been eliminated in many organizations, but new employees have been added to take on projects that were not considered feasible in the past. (4) Similar interpretation applies to the accounting profession. The first-order effect of advances in information systems technology has been the elimination of many low-level accounting positions.

On the other hand, the increased accessibility of information has led to increased demand for information by users, which has created new opportunities for professional accountants. To demonstrate, consider the example of external reporting. For most of the 20th century, the …show more content…
Information professionals such as accountants will play an increasingly significant role in the developing information society. Thus, there will be many new opportunities for accountants to provide valuable services in the future. Increases in the level of knowledge and skill required to provide such services will likely dictate increased specialization among accountants in the future, as well as an expansion of education requirements. However, these changes should also elevate the status of the profession and improve the quality of the services provided by its