Week 6 - Topic 6 - The role of technology in accounting Flashcards
Name 5 advantages and disadvantages of incorporating computerisation and software into accounting?
- Speed and volume of processing (data is available in real time)
- Minimal errors (subject to the quality of the input)
- Generation of specific documents and reports
- Vulnerability (power failures, system crashes, hacks)
- Computerised accounting is available to many due to its relatively low cost (important to many small businesses).
What are the 3 most common packages for accounting software for small businesses?
MYOB, Xero, and QuickBooks
What are the 3 most common packages for accounting software for large businesses?
SAP, Oracle and Microsoft
What does Enterprise Resource Planning (ERP) do?
connects departments like inventory, payroll, and sales through shared data.
Name one example of a software that visualises data?
PowerBI (Microsoft)
What does Artificial Intelligence (AI) do in terms of accounting?
Machine learning helps computers analyze data and assist in accounting tasks, but has limitations that students should recognize.
What does Natural Language Processing (NLP) do in terms of accounting?
NLP software analyzes text, simplifying complex reports for easier understanding.
What does Robotic Process Automation (RPA) do in terms of accounting?
RPA automates repetitive accounting tasks, boosting efficiency and freeing humans for complex work, requiring new skills in analytics and programming.
What is Blockchain? What does it do?
Blockchain distributes data securely, verifying transactions without auditors and reducing fraud, though auditors must adapt to new risks. Data is spread across many different computers, changes being confirmed by multiple members of the system and being stored forever.
What are the 4 phases that an accounting system is developed?
- Analysis
- Design
- Implementation
- Follow-up
Define Manual Accounting System?
Each of the steps in the accounting cycle is performed by hand.
