Role of Information Technology in Accounting

Indian accounting is set to face new challenges from the developed countries after outsourcing accounting work . To meet the challenge accounting sector in India needs tangible improvement in terms of quality and output. To fulfill these needs , Indian accountants must be well formed about the latest trends in accounting industry , i.e. about new techniques of voucher entries , new methods of accounting of branches and departments and new system of automation of accounting work . This should be possible only with the accountants interface millennium technology (IT ) in bringing about which is playing an important role in the era of globalisation . Meaning of IT Information technology refers to a broad term comprising of new communication and computing technology . Computer hardware software and Internet are key to these system that are designed developed and managed by IT professionals .  

Present Scenario of IT

The mobile Internet is overtaking the wired Internet . Nokia predicts that the number of internet connected mobile phones will exceed the number of Internet connected PCs by 2010 . Networking is growing at fantastic speed of 10 to 15 % per month or about 200% a year . Specialists forecast that in less than 10 years from now Internet terminals would be as common as telephone instrument but much more useful . About 99% of the districts have optical fiber network (OFN ) providing desired bandwidth for Internet connectivity for e-governance application in the country . The accounting community has more readily embraced the Internet than general population in countries likes USA , Canada and UK etc.

  Major Role of IT in Accounting

1. To put information close to accountants .
2. To improve the capacity of accounting research and extension specialists to organise , store , retrieve and accounting information exchange .
3. To evolve mechanism of information sharing .
4. To develop accounting database for easy access and data base decision making .
5. Access to the storehouse of information is easy.
6. accounting data will available universally .
7. One accountant can deal with various companies through effective utilization of IT in accounting .