Critically evaluate the role of accounting in informing decision-making to meet organisational, stakeholder and societal needs within complex operating environments.

 

·        Human: The user of the system is the only asset included in the accounting information system. Within an organization, professionals such as accountants, consultants, business analysts, managers, CFOs and auditors need to use the system. The accounting system facilitates communication and collaboration between company departments. Every person in a company has the right to access a well-designed accounting information system and get the information they need (SAPP,2023).

·        Technologies:  Applications for analytics and accounting have recently developed into new technologies. These solutions reduce administrative expenses, speed up processes by removing human error, and provide businesses with precise cash flow and financial data that is available through button pushes or form completion. With the development of newer, more sophisticated accounting software that can guarantee accuracy, minimize errors, and assist businesses in avoiding tax fines and other issues, technology has fundamentally changed the accounting sector. (FSBFX,2020).

·        Recording: The monitoring of transactions is the result of several factors. Among the goals are preventing or identifying fraud, supplying information for financial statements and tax returns, assisting in the identification of opportunities and trends, and assisting in the establishment of prices for goods and services, among other decision-making processes (Mahr, 2022).

·        Benefits: It streamlines accounting procedures, which improves accuracy and requires less manual labor from accountants. With automated tools, businesses can now quickly record details about sales, purchases, payments, and other important metrics without having to perform the labor-intensive work. as difficult as entering transactions by hand. Businesses or organizations can concentrate their valuable energies on other projects as they take care of all the labor-intensive work. There are fewer errors. Errors will be reduced when human error is completely eliminated. Businesses can expect that everything will be accurate the first time around when they begin streamlining their accounting procedures. Businesses can relax knowing they haven't missed anything and that their accounting is always accurate because decisions are made quickly (FinTaxBookkeping LLC, 2023).

·        Risk and limitations:

Modern software and technology have undoubtedly made significant contributions to the accounting profession by improving accuracy in calculations. However, the importance of ethics cannot be ignored even if machines replace human calculations. Accounting professionals have a responsibility to adhere to ethical standards and produce accurate and timely reports. Any misleading acts or false information can have severe consequences, including increased illegal and fraudulent activities. Accountants can easily be swayed by personal interests, leading them to commit illegal activities, such as tax evasion and fraud, which are contrary to moral standards. Violations of accounting standards can also damage the reputation of a business, resulting in a loss of trust and respect from customers. This can ultimately lead to a decline in the company's reputation or even bankruptcy ( Jaijairam, 2017)

 Data loss can have serious consequences for an organization's financial performance and overall business operations. Recovering lost data is an extremely complex and difficult process that requires a significant amount of time and resources. Acts such as corruption or virus attacks pose particular obstacles to accounting work, as the extent of damage to the organization can be difficult to assess. Data loss also carries the risk of sensitive information about the company and its customers being leaked, which can lead to dissatisfaction, loss of trust, and respect from customers. Even if organizations are able to recover, they may still require a lot of time to settle and agree on compensation with customers ( Jaijairam, 2017).

References: 

FinTaxBookkeping LLC (2023) Streamline your accounting processes: Benefits, challenges, and steps to accounting automation, LinkedIn. Available at: https://www.linkedin.com/pulse/streamline-your-accounting-processes-benefits-challenges (Accessed: 29 October 2023).

FSBFX (2020) How has technology impacted the Finance and Accounting Industry, LSBF. Available at: https://www.lsbf.edu.sg/blog/innovation-and-technology/how-has-technology-impacted-the-finance-and-accounting-industry/ (Accessed: 29 October 2023).

Jaijairam, P. (2017) Ethics in accounting - researchgate , ResearchGate . Available at: https://www.researchgate.net/profile/Paul-Jaijairam/publication/321167489_Ethics_in_Acc ounting/links/5a12cef4aca27287ce2a9b50/Ethics-in-Accounting.pdf (Accessed: 29 October 2023).

Mahr, N. (2022) Recording transactions in Accounting | Process & Examples - study.com. Available at: https://study.com/learn/lesson/recording-transactions-accounting-process-importance-examples.html (Accessed: 29 October 2023).

SAPP (2023) # Ứng Dụng Hệ thống thông tin Kế Toán Trong Doanh Nghiệp, sapp. Available at: https://sapp.edu.vn/he-thong-thong-tin-ke-toan/ (Accessed: 29 October 2023). 

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