Computers resulted in a tremendous change in business functions. Even in ancient times, any corporations required renting space for bookkeeping and accounting. As a result, this was a process for a month to calculate gain or loss which a business might have suffered. All records and were done manually and it was left in such a form for archives. Luckily, computers appeared and presented a way out: there was no longer any need for manual entry and use of a human brain to remember and memorize all financial operations of a company. This transformations were called automation which made a computer the basis for all new enterprises. Today, computers are widely used not only for accounting purposes but for many others as well. Still, talking about accounting, now every action which takes place in an organization is written, worked on, evaluated and corrected with the help of computers from the very beginning to the closing (Goodman).
Today’s society is built on the principles of a market economy and experiences an unprecedented increase in the amount of information in various fields of human activities. The highest rates of growth are seen in industry and commerce, as well as in the financial sector. The increase in production, as well as the development of modern technologies generated higher demands on the automation of information processing, both to increase the efficiency of an enterprise, and to free up the resources available for other needs. Modern computer technology has also touched the accounting field. Today this market has great opportunities in the form of solutions for accounting and information processing (Rupinski).
Accumulation, systematization and generalization of accounting information in the application of modern computers are made automatically. As a result, it is logical to expect that in the future all information will be held on computers. Therefore, accounting sphere will be completely reliable on computer technologies. Initial accounting information would be stored in a database computer system, then summarized and systematized in accounts that are a separate memory computer and are ideal from the point of view of the theory of accounting information in grouping media features. Structuring computer databases could be varied, and tabular principle on which paper registers are built will be the principal one in the construction of computer databases. With completely computerized accounting, any material of medium accounting theory can be considered as sensitive, so any electronic medium through which inventory information is accumulated can be considered accounting records. In general, IT will transform accounting in another branch of IT which records inventory and accounts. It is logical to foresee that people will deny paper documents and follow only virtual contracts and agreements.
Thus, the life of a modern society and functioning of a modern enterprise are impossible to be imagined without the computerization of their key processes. Computer technologies have become part of our lives (Rupinski). Modern accounting is no exception. The requirements for the content and level of training of a graduate accountant include a close relationship of their future career with the formation and use of information about the assets, liabilities, income and expenses. Therefore, knowledge in the field of information technology, organization and accounting in a computer environment is becoming vital.
The primary objective of accounting is to impose order in the account of all values. Records must be organized so that at any moment a person can get information about how much and what property a businesses or an organization has, where it is located, in what state it is used and who is responsible for their safety. Without a computer these areas are surely difficult to manage. An accountant found a reliable partner in a personal computer with which the business, organization or an individual firm can be presented in a variety of information characteristics, or in other words, the activity of an enterprise can be modeled (Chambers 314).
Computer technology has a number of processing features, which are particularly evident in the processing of accounting information. These are specific features which should be analyzed by future specialists in the accounting sphere. Due to a high implementation of IT in accounting, a specialist should remember about consistent execution. Computer processing is based on usage of the similar tasks aimed at uniform operations of accounting. This fact almost eliminates the random errors appearance which is frequently inherent in manual processing. On the contrary, errors in software lead to incorrect processing of identical operations under the same conditions. This fact should be understood by specialist since they need to track such problems and have sufficient knowledge in IT sphere to do this (Rupinski).
Secondly, there is functions division. A computerized system can make a lot of the internal control procedures that in manual systems are done by various specialists. This case leaves the professionals who possess access to a computer an ability to intervene in other functions (Rupinski). Consequently, computerized systems might request the implementation of additional restrictions to maintain control at some level, which could be achieved by a simple division of labor in manual systems. Such measures may include a system password, etc.
Thirdly, the potential for inaccuracies and errors should be mentioned. In comparison to a manual system of accounting, computerized systems are more likely to allow an unauthorized access, including those who have control. They are also keen for the hidden data changes and the direct or indirect receipt of asset information. The less a man interferes in machining operations account, the lower a possibility of errors and inaccuracies is (Rupinski).
Promotion of computers in the accounting practices leads to the development of specific forms of accounting, based on the use of electronic equipment. In this form there will be further increase in the degree of automation of the accounting process and the rate of receipt of all necessary parameters. A growing number of organizations uses modern computer equipment and the most diverse software. Each user can select the software that meets the needs and capabilities of a company. With the automation of accounting it is important not just incorporate all paper work on a computer. It is important that it has increased the efficiency of the accounting and improved control over the financial and business activities of a company, which in turn will increase the efficiency of enterprise management, and as a result, the effectiveness of its work. Thus, an accountant stops working entirely on external reporting and begins to influence decision-making.