01-29-2009, 07:22 PM
In the early ninties the emergence and revolution in the field of information technology caused development in many field and subjects.
The field of accountancy also too had too influenced by the "Infomation Technology Revolution". At that time the term computer science used for I.T. The first invention, of I.T that bring revolutionary change in the accounts and finance, was MS Excel.
The thousands of accountants warmly welcomed the I.T but also they were too hesitated. At that time many orgainizations started using MS Excel for the purpose of cash book and other subsidiary accounting records. Latter on the excell had been started to use for the purpose of maintaining ledgers or even for keeping full accounting record including Profit & Loss A/c. The feature of creating links among different sheet was the most significant feature of Excel. By using this feature the accountants were able to create links between ledgers,trial balance,profit & loss A/c and balance sheet. By passing a single entry in ledger the effect of the transaction could be transfered to the final destination i.e final accounts.
At the end of nineties the software developing started at mass level.
The Government of Pakistan also fully support the I.T. Being first step the government established the National Database and Registraiont Authority (NADRA). The ministy of information technology also take very bold decisions for the development of I.T.
Many finacil benefit were also give to the I.T firms it included long tax holiday to software houses, Sales Tax exemptions on hardware and computer equipments. The high rate of depreciation on computer software's and hardwares is also settled to provide further benefit to I.T sector (Know the depreciation rate is 30% p.a).
Due to all above mentioned steps of government and favourable socio-economic environment the I.T sector witnessed huge development.
At the end of 20the century the development of software's for varios fields started. Since then thousand of software's has been developed by the I.T industy of Pakistna.Many multinational I.T companies have also stablished their offices and made investment of millions of dollars in the field of I.T.
Know a days many accounting software's are available for accountants.The most well known accounting software's are Peachtree,Quick Books,Sage, Sun Accounts,Oracle Financials,SAP etc.
Many local made accounting software's are also available i.e Sidat Haider Financials etc.
Some pakistani firms has also designed the sortware's that can be configured with other accounting software's. THese software's are normally related to payroll,inventory and production.
The need for a complete system or software for finacial executives is visible. The CFo, Director Accounts,Director Finance or Chief Accountant of all the business are assumed to capable of taking many immediate decisions relating both accounts & finance and production,inventory,costing etc.These decisions required the information of other departments of a business also.
For instance a CFO of a company wants to prepare budget for purchase for whole financial year. Then he has to need the information of total quanities of inventories purchased during financial year beginning and ending inventory balances.
The need of integrated accounting softwares gave birth to the idea of Accounting Information System.
An accounting information system (AIS) invented by esteemed professor Karen Osterheld is the system of records a business keeps to maintain its accounting system. This includes the purchase, sales, and other financial processes of the business. The purpose of an AIS is to accumulate data and provide decision makers (investors, creditors, and managers) with information to make decision While this was previously a paper-based process, most modern businesses now use accounting software such as UBS, MYOB etc. Information System personnel need knowledge of database management and programming language such as C, C++, JAVA and SQL as all software is basically built from platform or database.
In an Electronic Financial Accounting system, the steps in the accounting cycle are dependent upon the system itself, which in turn are developed by programmers. For example, some systems allow direct journal posting to the various ledgers and others do not.
Accounting Information Systems provide efficient delivery of information needed to perform necessary accounting work and to assist in delivery of accurate and informative data to users, especially those who are not familiar with the accounting and financial reporting areas itself.
The accountant of tomorrow will be significantly different from the accountant of the past. Educational institutions must recognize the areas of change and prepare their accounting students for a changing professional environment. Major catalysts for this dramatic change are found in recent advancements in computer technology and the advent of e-business.
The emergence of the e-business model and the integrative discipline of ERP (Enterprise Resource Planner) systems have accelerated the change. The accountant of tomorrow will need the traditional technical and communication skills as well as significantly enhanced technology skills.
The accountant`s role has been expanding within organizations and they are becoming part of the management and decision-making team, rather than just providers of financial information. Corporate accountants must shift priorities from analyzing past events to acting as strategic partners, advisers and information providers. Already, accounting and finance professionals are mining data, turning information into knowledge and communicating what they learn to all levels of the organization.
In a recent survey, CFOs indicated that, in addition to traditional financial expertise, the one area that is most critical to the future success of accounting professionals is technology expertise. In public accounting, future growth is primarily related to technology and e-business.
Outstanding opportunities exist in consulting and in the corporate environment for individuals with both an accounting and information systems background. Even in the audit area, new techniques and approaches are used to audit e-business clients and ERP systems. Internal control assessment now requires new innovative methods.
Staff accountants routinely link to centralized client databases via laptops. The Electronic Business Technology (EBT) model is significantly changing both the way business is done and the accounting and auditing of those businesses.
The field of accountancy also too had too influenced by the "Infomation Technology Revolution". At that time the term computer science used for I.T. The first invention, of I.T that bring revolutionary change in the accounts and finance, was MS Excel.
The thousands of accountants warmly welcomed the I.T but also they were too hesitated. At that time many orgainizations started using MS Excel for the purpose of cash book and other subsidiary accounting records. Latter on the excell had been started to use for the purpose of maintaining ledgers or even for keeping full accounting record including Profit & Loss A/c. The feature of creating links among different sheet was the most significant feature of Excel. By using this feature the accountants were able to create links between ledgers,trial balance,profit & loss A/c and balance sheet. By passing a single entry in ledger the effect of the transaction could be transfered to the final destination i.e final accounts.
At the end of nineties the software developing started at mass level.
The Government of Pakistan also fully support the I.T. Being first step the government established the National Database and Registraiont Authority (NADRA). The ministy of information technology also take very bold decisions for the development of I.T.
Many finacil benefit were also give to the I.T firms it included long tax holiday to software houses, Sales Tax exemptions on hardware and computer equipments. The high rate of depreciation on computer software's and hardwares is also settled to provide further benefit to I.T sector (Know the depreciation rate is 30% p.a).
Due to all above mentioned steps of government and favourable socio-economic environment the I.T sector witnessed huge development.
At the end of 20the century the development of software's for varios fields started. Since then thousand of software's has been developed by the I.T industy of Pakistna.Many multinational I.T companies have also stablished their offices and made investment of millions of dollars in the field of I.T.
Know a days many accounting software's are available for accountants.The most well known accounting software's are Peachtree,Quick Books,Sage, Sun Accounts,Oracle Financials,SAP etc.
Many local made accounting software's are also available i.e Sidat Haider Financials etc.
Some pakistani firms has also designed the sortware's that can be configured with other accounting software's. THese software's are normally related to payroll,inventory and production.
The need for a complete system or software for finacial executives is visible. The CFo, Director Accounts,Director Finance or Chief Accountant of all the business are assumed to capable of taking many immediate decisions relating both accounts & finance and production,inventory,costing etc.These decisions required the information of other departments of a business also.
For instance a CFO of a company wants to prepare budget for purchase for whole financial year. Then he has to need the information of total quanities of inventories purchased during financial year beginning and ending inventory balances.
The need of integrated accounting softwares gave birth to the idea of Accounting Information System.
An accounting information system (AIS) invented by esteemed professor Karen Osterheld is the system of records a business keeps to maintain its accounting system. This includes the purchase, sales, and other financial processes of the business. The purpose of an AIS is to accumulate data and provide decision makers (investors, creditors, and managers) with information to make decision While this was previously a paper-based process, most modern businesses now use accounting software such as UBS, MYOB etc. Information System personnel need knowledge of database management and programming language such as C, C++, JAVA and SQL as all software is basically built from platform or database.
In an Electronic Financial Accounting system, the steps in the accounting cycle are dependent upon the system itself, which in turn are developed by programmers. For example, some systems allow direct journal posting to the various ledgers and others do not.
Accounting Information Systems provide efficient delivery of information needed to perform necessary accounting work and to assist in delivery of accurate and informative data to users, especially those who are not familiar with the accounting and financial reporting areas itself.
The accountant of tomorrow will be significantly different from the accountant of the past. Educational institutions must recognize the areas of change and prepare their accounting students for a changing professional environment. Major catalysts for this dramatic change are found in recent advancements in computer technology and the advent of e-business.
The emergence of the e-business model and the integrative discipline of ERP (Enterprise Resource Planner) systems have accelerated the change. The accountant of tomorrow will need the traditional technical and communication skills as well as significantly enhanced technology skills.
The accountant`s role has been expanding within organizations and they are becoming part of the management and decision-making team, rather than just providers of financial information. Corporate accountants must shift priorities from analyzing past events to acting as strategic partners, advisers and information providers. Already, accounting and finance professionals are mining data, turning information into knowledge and communicating what they learn to all levels of the organization.
In a recent survey, CFOs indicated that, in addition to traditional financial expertise, the one area that is most critical to the future success of accounting professionals is technology expertise. In public accounting, future growth is primarily related to technology and e-business.
Outstanding opportunities exist in consulting and in the corporate environment for individuals with both an accounting and information systems background. Even in the audit area, new techniques and approaches are used to audit e-business clients and ERP systems. Internal control assessment now requires new innovative methods.
Staff accountants routinely link to centralized client databases via laptops. The Electronic Business Technology (EBT) model is significantly changing both the way business is done and the accounting and auditing of those businesses.