USE OF IT IN ACCOUNTS

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Business Mantra: Faridabad


Information Technology is the revolutionary change of modern days. IT has gained a good use in accounts maintenance, auditing, filing of returns, and payment of taxes. Use of paper, pencil, and battery operated calculator has almost vanished in corporate world.

So WHY IT Is In So Much In Demand Now?

Because of the following characteristics IT is so much in demand:-

  • Relevant– information applies to the current situation.
  • Timely– information is up-to-date and available when it is needed.
  • Accurate– Data given to the computer and output are correct in every detail.
  • Concise– information is condensed into a usable length.
  • Complete– all important items are included.

IT has made everything fast & more accurate due to less human intervention. There is even no issue of security as access controls like BOUNDARY CONTROLS (password, PIN etc.), INPUT controls (source document, data coding), PROCESS CONTROLS, OUTPUT CONTROLS and DATABASE CONTROLS in the form of RBAC, RAC are there which are detailed below:-

RBAC (ROLE BASED ACCESS CONTROLS) – The automated system or administrators place subject to roles and they receive only the rights and permissions assigned to those roles. For e.g. Sales role, Accountant role, etc.

RAC (RULE BASED ACCESS CONTROLS) – It is context based. Constraints are applied along with the user’s role. For e.g. Accountant role and the subject can’t access system for certain time period.

The conviction of security, confidentiality & storage problems is restructured by cloud computing which helps to store data on the internet & can be accessed from anywhere by authorized users. The users have to pay only for the services used & ‘pay-per-use’ basis is the biggest attraction of cloud. The cloud has helped in cutting the expenditure on storage devices.

In the era of digital India many usages of IT are there

  • Taxes are to be paid via online mode. It also provides reminder for timely filing of returns.
  • Backup and retention policies are also a feather in cap of computer software’s.
  • Government has provided provisions in IT Act 2000 (amended) and Companies Act 2013 regarding preparation and retention of accounts in e-form. Moreover recognition has also been granted of online documents which are used as evidences.
  • The accounts are to be kept in prescribed form along with digital signatures (which are mandatory).

Speed is the hallmark of information technology. IT also helps to keep track of data & transactions as they are settled on real time basis i.e. when they occur. The 21ST century professionals need to be strategically sound which InfoTech helps them to be by providing various applications for the same also business process automation helps in reduced efforts as regular activities which are repetitive in nature are done automatically by a one-time command. Basically, IT has become an integral part of business software’s & the great part is that regular updates are available.  IT is used at every level in the organisation though for a different purpose. Top level management uses it for strategy development and planning and take major decisions. Middle level management use IT to keep record of the fulfilment of their assigned tasks. Most of the big enterprises now demand professionals having good hand at InfoTech. The accountants of present & future must be technologically savvy to be relevant, the courses & universities are preparing new graduates for this challenge.

IT is surely a gift as it helps to coordinate the work optimising errors and duplication.  Software’s and Hardware’s can be installed easily due to reasonable cost of the same. IT has covered the whole organisation and it is the important aspect of corporate world these days due to growing technological advancements. Though there are threats in the use of IT which is hurdle in complete reliance on InfoTech but the advantages and uses overrides that aspect.

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