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According to the history, accounting takes one of the great places in human
civilization. When people were being civilized they try to avoid from previous
wild life. Actually they made their own foods by cultivating crops and maintaining
animal farms. That’s why they need to know about the information of their own
assets. Therefor they need to keep the records about their assets. That was the
reason they starts counting. Maidenly they used little piece of stones and some
seeds to count their assets. After the amount of assets being expanded, people
needed much more big method to count. Then they found numerical system to
count their personal belongings. Accounting was born when people starts
counting. When the people try to maintain their personal staff, (like their income)
they need to find a way to clearly record their day to day transactions. That was
the place when accounting comes to human life. Since that day people went
through so many eras with the help of accounting. Most of them did business as
their occupation. Once they sell something, they keep it with their entries.
Therefore they need proper accounting way. Likewise people have done lot of
things related to the accounting. According to the history most of the people
maintain their accounting transactions manually. Some of old fellows kept their
transactions on their own memory. But lots of them kept them in a separate book.
They included all the revenues, expenditures and also their assets to their
accounting books.
When they record their transactions, basically they used their own ways. One
person’s recording system is completely different from another. According to that
fact these records cannot be read by another party. Only the owner can modify
those records. Therefore some people tried to find out a common and the best way
to keep business transactions correctly. After few more researches and
experiments people was introduced the standard method to recode their day to day
transactions. Since that day people maintained their transactions according to the
standard method. Our forefathers each and every business, they keep separate
books. According to that they kept their transactions very clearly. As a reason of
that human life became easier than before. Now any one can understand what the
meaning of these recordings and how these things work.
Time to time people were getting more developed they feel some kind of an
essentiality of a new technology to make their work easier. In late 80’s people
needed some kind of a growth in every field. Because when the population
expands their businesses became much larger than they thought. Their needs,
wants and lots of things related to those are expanded. On that reason they started
large companies, organizations factories etc. . . . Lots of employees work under
one employer. Because of that, frequency of the production, amount of production
and amount of employees are expanded. As a result of that they faced some kind
of difficulties on these fields like the difficulty of keeping much larger records;
handling huge number of people at one time; the difficulty of maintaining lot of
books for a single area. Therefore they sense the need of much bigger technology
than previous. In other words they needed something new for their lives.
On the other side the information technology was becoming to an unexpected
development. Lots of people did experiments on that field such as Bill Gates,
Steve Jobs. People had a belief on information technology, that it can do any of
the activities via IT. And always information technology field is refreshed. Always
new things are invented and those things were helpful to make our day to day
work easier. Due to full of activities, theirs only hope was information technology.
Like others, accounting field is also expected the help of information technology.
So the information technology professionals had to find some better way to solve
this problem. They need to find a similar thing for an accounting record system.
Actually the accounting is some kind of a numerical counting system. And
information technology is also based on the calculations. But it can do something
faster than manually we do.
How Information Technology could be used to improve accounting activities?
We can use information technology in very useful ways to improve accounting
activities. Actually before that we have to discuss about the advantages of using
information technology to improve accounting activities.




Can maintain many type of accounting systems at once.
In point of fact that information technology is very useful to our accounting
activities. That is to say, as I mentioned above accounting and information
technology has a very close relationship. Almost both of the fields are related to
numerical calculations. In IT we can use those calculations as much as accurately
and quickly. We created applications such as database managing systems to input
data on accounting purposes. Usually we use applications to enter data and do
some calculations based on accounting. We can use a single application for a
single data entry system. As an example if a person has two businesses on his
own, he can use separate applications for them. Sometimes if they are related each
other, we have to enter data at same time. With the help of Information technology
it has become an easy task. How we going to do this is almost we can connect
those applications each other and do the necessary work separately.
Can save time
Actually when we use information technology as the help of accounting, we can
save time. When we maintain records manually, we have to use lots of books for
each and every business. So if we want to find some information we need to
search in each and every book from beginning to end. So it is a kind of time
wastage. If we need something we need to turn page by page and go through them.
It is a kind of very hard work and also sometime it will take more than a day in
large business. They have to go day by day, month by month, year by year and so
on. So with the help of information technology, that task becomes much easier
than previous. If we want to find some information we can search it less than one
second. If we need to enter some multiple data we can enter on many entries as
soon as possible. That is the way how information technology helps to save the
time in accounting activities.
Can be categorized in to many areas
If our business is very large we have different extents on it. When we are working
manually we have to use different ways to categorize these areas like using
separate books or one book dividing in to several parts. Sometimes we faced lots
of troubles when we were going to maintain those records. If we want some data
we have to go through book by book. So it is a kind of time wastage. Therefore by
the help of information technology; we have a solution for that. By the developed
applications we can categorize data so easily. And also if we want to find
something we can find by searching; the result is very speedy than previous. So it
will become an interesting subject because of information technology. The
important fact is we can do multiple data entries by a single user. Lots of space has
saved because of using computer instead of books and journals. That is the
advantage of using information technology for accounting purposes.
Can give a good protection for their data (It can keep the privacy)
In the old system anybody can go through the journals with or without owner’s
permission. Likewise sometimes it can be harmful for the business. Because of the
sometime we have captured to the income tax. The only solution was hiding their
journals and books. But nowadays by the help of information technology we
cannot do anything for that. Almost the application has an inbuilt security system.
We can secure the information by a password that only known by the authorized
person. And also we can allocate separate passwords for separate entities. In a
company it will more helpful for the accounting purposes. As an example
according to IT, some managers can access only for their own fields by their own
password, but CEOs or Board of directors can access each and every area from
their password. So it will more helpful to keep privacy.
Can save money which we are paying for employees
According to the old system we need more employees for maintain accounting
records. Sometimes it was a very unnecessary cost. But today with the help of
information technology, we can be cut those kinds of costs. We can do lots of
work by one person with the help of information technology. Maintain records,
enter data, edit the records, remove unnecessary activities like wise those kinds of
works can do by one person. Otherwise we need more people to do each and every
job. And also we have to consider about their welfare and so on. So with the help
of IT we can avoid those problems. Therefore we can save money. And almost one
person can do lots of jobs by a single click; therefore it is always the saving of
time.
Advances Continue, because of that accounting software has continued to
improve. Every business function that generates numerical data that connected
with financial reporting. Fully integrated software packages such as SAP and
Oracle, along with many others available in the marketplace, allow companies to
set up how data will be input into the systems and how that data links into the
accounting function for immediate and later use. There is a price tag for this level
of performance, both in acquiring and implementing the software system, and in
the number of users required to gather all of the data desired by the company. In
today's business environment, all large companies have systems of this nature.
They need this kind of nature to be competitive with other businesses.
Other software packages give more limited capabilities that are more but can
easily maintained by a smaller user group. This packages used by the small
business. This is user friendly also. Then the result will have on time. And they
can improve their business by looking at old records because with the help of IT
they can compare them easily.
Those are the benefits of using information technology on accounting purposes.
And also we face some problems when we are going to do something in IT. Let’s
talk about those problems.

        to train people



First of all we faced some problems when we are going to train people to work in
information technology field. Actually when we train someone we have to the
basic knowledge of information technology. (As an example, how to use the
computer) then we have to train them in different sections like data entering ,word
processing , typing and so on. Sometime it is difficult to train old people who were
familiar with the old system. It is little hard to turn them in to new method. But the
best way is recruit a new one for this job. Why I am saying this is younger
generation have a good sense in IT field. Therefore it is easier to train them. When
we train them we face another problem. What are we going to do with old
employees? That is also a big situation.
Sometimes we have to pay compensations for them. One hand it can be harmful
for the company existence.
When we get the help of information technology, we have nothing to do with the
old records. So we have to dispose them. Almost it is a loss for the company. And
also we have to buy new accessories to continue their job. Actually we need to
basically buy a computer, a printer, a scanner and so on. Therefore we have to
spend some money on that. So likewise we have to do some unnecessary work.
So this is the description of how information technology could be used to improve
accounting activities and the difficulties faced by the organizations in introducing
IT to accounting activities.

				
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