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Table of Contents

1. Introduction---------------------------------------------------------------------------------------------2

2. Adopted new technologies in accounting and finance practices---------------------------------2

3. Positive impact on accounting and finance practices---------------------------------------------3

4. Negative impact on accounting and finance practices--------------------------------------------4

5. Conclusion----------------------------------------------------------------------------------------------5

References-------------------------------------------------------------------------------------------------6
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Adapting new technology in the Fields of Accounting and Finance Practices

1. Introduction

Every CPA understands that accounting is the universal language of business.

Throughout history, that language has seen a great deal of development.  However, one thing

that has stayed the same is the impact technology has had on simplifying the accountant's job.

As our awareness of technology develops, so does the accountant's ability to evaluate

statistical data. Accounting professionals now have more access to the ability to evaluate data

quickly and precisely because of advancements in computing power (Sherif and Mohsin,

2021). In addition, there is a growing interest in using cloud computing. Cloud computing

uses an external server to store data indefinitely and run commercial programs. Therefore,

this essay aims to highlight the crucial features of accounting and financial processes amid

the ambiguity that characterizes a pandemic. In addition, the essay will highlight the

difficulties and potential benefits of putting accounting and financial strategy into practice in

the context of the relevant literature.

2. Adopted new technologies in accounting and finance practices

Artificial intelligence is one of the most promising emerging technologies with the

potential to change the face of accounting as we know it. Automated qualitative data

analytics provide CFOs with up-to-the-minute data on which to base their strategic planning,

while machine learning algorithms streamline mundane, repetitive tasks (Miroshnychenko,

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Barontini, and Testa, 2017). Natural-language processing is one AI-based solution that has

been having a significant influence on a related sector. Applying this method to the

accounting field may assist accountants in saving countless hours by automating the

generation of financial contracts.

Options exist for the qualified CPA who has mastered these new accounting methods.

Due to the crucial role that IT plays in modern businesses, the IT department must be well-

managed. The manager in charge of IT must ensure that the company's IT infrastructure

supports the company's goals and plans. Information technology (IT) systems must be

compliant with adequate controls, competitive in the industry, financially sound to the

company, secure, and have a safety mechanism plan in place (Handoyo and Anas, 2019). As

substantial as it is for the IT infrastructure to serve the organization's goals, regulatory

compliance is of paramount importance.

3. Positive impact on accounting and finance practices

There is considerable potential for fraud inside an organization's accounting

department, according to the ACFE's 2018 study. Inadequacies in the rules governing

financial reporting provide a loophole for unethical conduct, necessitating an audit of the

benchmarks and a detailed investigation into how they may aid in fraudulent or otherwise

dishonest reporting. How might various forms of cutting-edge innovation, such as the

blockchain, the Internet of Things, and AI, help rein in unethical behavior in the accounting

profession? Accounting rules that do not consider the interests of modern stakeholders might

be rendered obsolete by such informational age digital technology. It is crucial because new

tools in the accounting industry have the potential to restore the public's faith in accountants

by confirming the integrity of financial reports and reducing the impact of ethical blind spots.
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By 2020, 59% of all fraud will have been recognized as accounting fraud (Moll and

Yigitbasioglu, 2019). Most accounting scandals involve either the theft of company funds or

the falsification of financial statements. Blockchain is a decentralized database that records

digital transactions and updates itself practically instantly, thanks to the labor of computers

all across the network (Önkan and Arikan, 2022). With no one entity in charge of the

blockchain's collective ledger, each user (or "node") is responsible for keeping a replica of

the database. For the blockchain to work, each transaction must be verified by a network of

peers (Önkan and Arikan, 2022). Once a transaction is posted, it cannot be undone and

becomes part of the permanent record. It is because cryptography is used to secure the

connections between the blocks. If modifications are made after the blockchain has been

posted, the cryptographic hash that uniquely identifies each block will no longer be valid.

Because of this, there is no longer any possibility of a decline in accounting fraud.

4. Negative impact on accounting and finance practices

When relying too heavily on technology can cause even more issues. There is a

growing risk of hackers gaining access to and using your company's financial data due to the

increasing use of cloud-based software storage. If hackers exploit an employer's tax

information to obtain credit cards and business loans, the company might be liable for any

losses incurred (Schaltegger and Burritt, 2017). Someone inside the company may access the

system, tamper with the data, and steal money from the daily deposit. Owners of businesses

should take every precaution to safeguard their financial data.

Furthermore, educational institutions, particularly those concerned with accounting

education, must react to the phenomenon and modify their curriculum to meet the demands of

the modern period. To fully realize the advantages of modern technology in the classroom,

educators must integrate cutting-edge tools and resources into their pedagogical practices
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(Azudin and Mansor, 2018). Students in the fields of accounting and finance often find

themselves at a disadvantage in the job market after graduation because of their lack of

familiarity with and comfort with the cutting-edge tools utilized in accountancy today.5.

Conclusion

5. Conclusion

Technology has led to a dramatic improvement in accounting software, with modern,

sophisticated applications ensuring reliability and minimizing errors, therefore assisting

businesses in avoiding tax penalties and other issues. On top of that, it is simpler than ever to

set up thorough audits. Even though there have been tremendous advancements, several

innovations have reorganized bookkeeping procedures. Accounting organizations of all sizes

are increasingly adopting cloud-based solutions due to their ability to centralize data and

provide employees with convenient remote access. In this method, accountants have access to

all the data they need whenever they require it, regardless of where they want to be. With the

advent of cloud computing and its limitless storage capacity, storing enormous files is

feasible, allowing for real-time data analysis. Thus, accountants must welcome technological

innovations to keep their expertise current. Training programs in financial accounting are a

great way to expand one's horizons and learn new things.

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References

Azudin, A. and Mansor, N. (2018). Management accounting practices of SMEs: The impact

of organizational DNA, business potential and operational technology. Asia Pacific

Management Review, 23(3), pp.222–226. doi:10.1016/j.apmrv.2017.07.014.

Handoyo, S. and Anas, S. (2019). Accounting Education Challenges in the New Millennium

Era: Impact of Advanced of Technology and Dynamic Business Environment.

Journal of Accounting Auditing and Business, 2(1), p.25.

doi:10.24198/jaab.v2i1.20429.

Miroshnychenko, I., Barontini, R. and Testa, F. (2017). Green practices and financial

performance: A global outlook. Journal of Cleaner Production, 147, pp.340–351.

doi:10.1016/j.jclepro.2017.01.058.

Moll, J. and Yigitbasioglu, O. (2019). The role of internet-related technologies in shaping the

work of accountants: New directions for accounting research. The British Accounting

Review, 51(6), p.100833. doi:10.1016/j.bar.2019.04.002.

Önkan, Ö. and Arikan, Z. (2022). The Impact of Blockchain Technology on Tax and

Accounting Practices. [online] Blockchain Technologies and Applications for Digital

Governance. Available at: https://www.igi-global.com/chapter/the-impact-of-

blockchain-technology-on-tax-and-accounting-practices/293833 [Accessed 12 Sep.

2022].

Schaltegger, S. and Burritt, R. (2017). Contemporary Environmental Accounting. Routledge.

doi:10.4324/9781351282529.

Sherif, K. and Mohsin, H. (2021). The effect of emergent technologies on accountant's ethical
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blindness. The International Journal of Digital Accounting Research, pp.61–94.

doi:10.4192/1577-8517-v21_3.