Accounting Innovation Assignment: Impact Of Innovation In Business

Question

Task: Prepare the accounting innovation assignment discussing about the impact of innovation to the business in the current scenario.

Answer

Summary of the articles
The present accounting innovation assignment sheds light on the concept of innovation in accounting and its impact to business. Beyond question, society has undergone immense change and the companies need a huge range of tools and techniques to attain the desired result. Further, the major emphasis is on the integrated management system that helps in controlling the activities of the company and need a fewer number of employees. As seen from the articles the process of accounting has undergone a sea change and is very essential for the organization in attaining a competitive advantage. The internal processes of the organization are dependent on the accounting information and the operations mainly depend on it. Therefore, it is imperative that the accounting process helps in enhancing productivity and aids in decision making. The researches have been undertaken by the authors to establish a direct link with the performance of the business and accounting system. Indicated in the article by (Chen and Wu, 2011) it is clearly emphasized that innovation in the system of accounting contains both pros and cons.

In the present scenario, it is impossible for an organization to remain competitive without the utilization of technologies because the investments will reap benefits for the organization as a whole and build a future perspective. As per (Feller, Finnegan, and Nilsson, 2011) the utilization of IT in the organization has enhanced by leaps and bounds and is more concerned with the concept of competitive advantage. As per the practical implication of the mechanism it can be commented that it has brought about a major revolution that has provided a leading edge to the accountants and the organization as a whole.

Further, the article examined herein accounting innovation assignment clearly highlights that innovation in technology can help accountants to a great extent. Cloud computing and the utilization of software have changed the entire scope of the accountants whereby the work has become easier and smooth in nature. The utilization of the Enterprise Resource Planning system (EPRS) has vastly influenced the level of growth (Sarokolaei, Bishak, Rahimipoor, and Sahabi, 2012). The advent of different software has led to ease in the completion of the task. It has led to immense flexibility in the area of taxation, accounting and maintenance of records.

The routine or the monotonous tasks of the accountants has been refined with the aid of technological improvements. It is witnessed that the EPRS has provided significant growth to the company and the perception of the managers has changed significantly. As a matter of fact, AI can be utilized to perform the tasks that are standardized such as filing of tax forms, ascertaining the transactions and flagging activities of the business that are complex in nature which would have needed immense input from the accounting and tax experts. In short, the routine work will be automated which would have been a time-consuming event. On the contrary, the advent of blockchain has been a major support for accounting function as it provides an individual source of data particularly between the untrusted and the semi-trusted parties. This data, in turn, proves to be beneficial in terms of decision making, tax filings, and other analytics.

It is imperative that the business environment requires a paramount amount of data and the stakeholder's group is always looking forward to a variety of information that can be possible with the help of accounting processes. A simple accounting process will not be sufficient and hence innovation proves to be a major asset to the organization as a whole. Hence, the study and the discussion prepared in the accounting innovation assignment lay emphasis on the process of innovation in accounting and how decision making is influenced by the presence of technology.

Common theme
The advent in the arena of IT has ensured a major development for the profession of accounting and this has been signified with the help of article proposed by (Chen and Wu, 2011). Previously the accounting was stagnant for many years due to the deficit of information exchange or the improper exchange of information among the users. The management need not wait for a longer time frame for the want of any information or while ascertaining the financial aspect of the company. Things are easier and fast. This is one of the major merits of information technology in the area of accounting. The biggest update of IT has been the Blockchain that has helped the accounting arena in terms of transaction (Feller, Finnegan, and Nilsson, O, 2011).

In this scenario of accounting innovation assignment, the accountants will be required to interpret the records of block chain and understanding the records to know the economic reality together with the valuation. Further, the blockchain helps in the elimination of the reconciliation and provides authenticity over the history of the transactions and even leads to increment in the scope of accounting. Hence, it is highly useful for big companies and accountants.

Cloud computing is another major benefit from the side of technology in the field of accounting. As indicated in the article by (Han, Hsieh, and Li, 2011) cloud computing has various benefits and the major being it helps the accountants to complete their work from any location of their choice. It helps in generating information and provides a report that helps in the process of evaluation. The spare time can be utilized by the accountant to deal with the clients and place business strategies that help in dealing with complex financial transactions. ERP has revolutionized the decision making process of the organization and reflected in the article proposed by (Sarokolaei, Bishak, Rahimipoor, and Sahabi, 2012). The management should be proactive so that the utilization of the ERP can bring significant results.

Different theme
From the readings utilized to prepare this accounting innovation assignment, it is evident that the rate of success of the implementation of the technology has been paramount however, various technologies have their own pros and cons. Going by the study of different articles it can be commented that the implementation varies. The article by (Feller, Finnegan, and Nilsson, O, 2011) is more devoted to the utilization of software, blockchain, and AI while the article (Chen and Wu, 2011) is upon the benefits provided by the IT in the field of accounting. Technically, the benefits availed by the accountants have been described in the article. On the other hand, the article by (Sarokolaei, Bishak, Rahimipoor, and Sahabi, 2012) sheds light on the concept of ERP and how it has benefitted the accounting profession as a whole. Hence, the major impact on the performance of the business is described and discussed in the article. Lastly, (Han, Hsieh, and Li, 2011) emphasize the importance of IT in the field of accounting. Though the article examined in the accounting innovation assignment is relatable to the other article the benefit of the IT in accounting has been emphasized in an in-depth manner.

Managerial implications
The use of IT in the accounting field has brought favorable results and this is well justified by the advancements in the process and result. As indictaed by the article of (Feller, Finnegan, and Nilsson, O, 2011) the productivity in the IT implemented organization is more as compared to the ones that do not. In the past the accounting system was complex however with the help of the accounting information system, the entire concept has become refined and the job of the accountants has undergone immense change where the manual work is automated.

The mechanism of AIS discussed in the accounting innovation assignment has led to tend to bring ERP into action where the department of accounting gets a huge help. The process of recording, processing, management of accounts, payroll has become easier and that helps in processing the information into meaningful information (Han, Hsieh, and Li, 2011). With the correct ERP, the business is bound to get the best result.

Highly advocated by (Sarokolaei, Bishak, Rahimipoor, and Sahabi, 2012) that the presence of data is crucial for any organization. With the flourish in the accounting system, there has been a high level of hacking activities that needs to be combated by the organization. This problem remains a major stake for the organization that tends to rely on the IT system in accounting. It is imperative that the presence of software, blockchain, and AI is laced with additional cost. This factor discussed in the accounting innovation assignment has been mentioned in the article drafted by (Feller, Finnegan, and Nilsson, O, 2011). If the business needs the presence of technology, it needs an additional amount to be invested in the process of implementation and maintenance.

Limitations and Recommendations
It is evident herein accounting innovation assignment that technology has benefitted accounting to a major extent. The presence of innovative tools has vastly helped the organization in the attainment of the goals and the same has been highlighted in Chen and Wu (2011). While from the perspective of Han, Hsieh, and Li (2011) the workload has diminished and the efficiency of the organization has enhanced. It is agreed by the accountants that Blockchain, AI and Cloud computing has changed the entire scenario of the organization. The presence of technologies will help the organization is reaping benefits and the accountants will be at ease to perform their tasks from any corner of the world. This has benefitted the larger organization owing to the fact that it can bear the heavy costs however for a small organization it is costly because the major sum of the funds needs to be invested in getting the desired results. The major limitation observed is the cost of implementation runs large and hence might not be suitable to small organizations. As per the author of all the articles examined the above sections of accounting innovation assignment, it is recommended that the usage of AI and could computing will help the organization in the long run and hence accountant must be familiar with it.

References
Chen, Y. C., and Wu, J. H., 2011, IT management capability and its impact on the performance of a CIO. Information & Management, [e-journal], accounting innovation assignment 48, 145-156.

Feller, J., Finnegan, P., and Nilsson, O., 2011, Open Technological Innovation and public administration: transformational typologies and business model impacts. European Journal of Information Systems, [e-journal], 20, 358-374

Han, C. C., Hsieh, F. L., and Li, X., 2011. Information technology investment and manufacturing worker productivity. Journal of Computer Information Systems, [e-journal], 52(2), 51-60

Sarokolaei, M. A., Bishak, M. J., Rahimipoor, A., and Sahabi, E., 2012. The effect of information technology on efficacy of the information of accounting system. accounting innovation assignment International Conference on Economics, Trade and Development IPEDR, [e-journal] 36, 174-177.