Good Essay On Accounting

Impact of advanced technology to business processes

The expansion of technology over the years and the adoption of Information technology in organizations have revolutionized the entire structure of the organization communication system. As the contemporary business focus shifts from business oriented to customer oriented, organizations are compelled to align their structures to fit and serve consumer requirements. In the process, the business structure gradually shift from hierarchical structures and replaced by horizontal business processes.
The impact of applying radically improving technology on business processes exceeds the impact of other contributors such as business process re-engineering, shared services and outsourcing. Most executives of both big and small companies acknowledge the high impact of Information Technology application to their business process. Such processes include; Accounting, finance, marketing and sales.

Information technology has rapidly replaced the hectic manual processes of developing and managing accounting system. The advanced software packages (such as QuickBooks or Microsoft Money) available today simplify the hectic and detailed processes of setting up accounts as well as recording and facilitating daily transactions. As a consequence to the efficiency, the organization reduces its budget on hiring the accountants and other personnel responsible for setting up and managing accounts. Without this technology, managers would not make quick informative reports and regular financial statements that indicated business trends. These trends indicated in the reports are vital tools for the decision-making process.
It is impossible for an organization to ignore the incorporation of IT and still survive the competition from rival companies. Without advanced technology, a company renders itself irrelevant and less competitive in the market. It is extremely important that both big and small companies update their levels of IT in their company to retain their chances of competing fairly.

Time management

The unmatched efficiency that software packages offer to organizations give the personnel (and especially the managers) the extra free time to focus on other productive activities. The junior staff gets time to interact and bond to create effective teams for the organizations' benefit. With adequate and efficient communication (such as the video conferencing tools), comes the reduction in travel cost and a cut on the companies' budgets. Without this advanced cellular technology, organizations would still be spending a fortune in ensuring effective communication both with customers and associates.

New communication barriers

Even with high productivity owing to advancement in technology, new forms of challenges in communication arise with the use of technology in communication. Such issues include; organizational barriers, language barriers and physical barriers.
Cell phone utility has interrupted the flow and order in the organization. The disruption in the order and lack of organizational unity within the workforce affects effective communication. The organization affected need to enact company policies to regulate and define communication between employees in various locations of the organization.
Over-communication via advanced technological gadgets reduces the tendency to create real relationships and interactions. The non-verbal forms of communication can no longer be enhanced with consistent interaction via a cell-phone or electronic mail.