Applications of Technology in Modern Accounting
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Applications of Technology in Modern Accounting
Jonathan EnoChristopher Parks
Nathan Phillips
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Technology in Accounting The more a company is able
to access and review data with immediacy, the more nimble they are in response to business challenges and opportunities.
There are many decisions that a manager, business owner or CFO may need to make as accounting systems are put in place to replace the paper ledgers of the past
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ERP systems are one of the most widespread applications of technology in accounting.
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ERP systems are used by organizations to integrate their accounting and other business functions.
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What is ERP?
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The ERP market is dominated by two vendors, SAP and Oracle
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Clash of the Titans: An independent comparison of SAP versus Oracle
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CRM SystemsPackaged systems
focused on the support of several key areas of a company including:
The customer service relationship
Product distributionCompany revenue and
cost tracking functions
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CRM SystemsCommonly used as a
separate package from the central accounting and finance functions of an enterprise
Typically not focused on external stakeholders
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SME SystemsFocused on small and
medium enterprisesSimilar functionality to
ERP systems, but may not be as integrated to all departments
Often offered as Software as a Service (SaaS) products
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Integration Fights Hairballs
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Cost of Systems SME systems are priced as low
as $15 per year for a service A full-service SME solution
may cost several thousand dollars for the software plus several hundred per year per license
ERP systems for middle to large scale companies commonly range from 100,000 to several million dollars, plus large costs per user
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System PerformanceFactors that drive the
decisions on what systems to use include:
Storage of documentsEase of inputtingAccessibility of data for
review, distribution, and analysis
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ERP System ImprovementsRecent ERP system
improvements include: Systems that speed the
inputting of data into the ERP system at the unit or call center level and provide managers with automatic reports from the system queries
Systems and interfaces that improve ERP system functionality
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Mobility Universal desktops, VPNs
or interface portals allow clients and managers to access information and perform functions in the ERP system throughout the world using mobile devices
This mobility is increasingly important as the speed of information distribution capability improves
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Mobile Accounting Software Example
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DashboardsDashboards are designed
to be a visual representation of business performance for a defined business unit
Dashboards display relevant data on a single page for easy display on mobile devices
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Cloud Computing
• One of the major recent developments in business software is increased use of cloud computing.
• What is cloud computing?
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Cloud Computing Explained
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Companies can now focus on responding to information instead of spending huge amounts of time recording and storing it
The next challenge for companies is to make use of the cloud more effectively, speeding information through their organization and encouraging pro-active response to information and analysis