How can Information Technology help CAs? – complete details
How can Information Technology help CAs?. How can IT help CAs?. CAs (Chartered Accountants) are required to get acquainted with IT (Information technology) tools as there is rapid development in the FinTech. FinTech refers to technology used with or in or along sides or for supporting Finance sector. This article will deal with how Information Technology can help CAs. now check more details about “How can Information Technology help CAs?” from below…
How can Information Technology help CAs?
Relevance of Information Technology in finance field
Computerization in banking sector has led to core banking system
The banking system has evolved a great deal since introduction of IT in its operation. This digitalization has helped us in may ways like ATM (Automated Teller Machine), Online banking or Net Banking, Online Debit or credit card purchases etc.
The Core banking System facilitates money transfer at any point of time and from anywhere in the world through net banking and mobile banking. You can now even pay taxes online and purchase medicines online. This has been made possible by implementing Information Technology.
Automation of accounts writing , inventory records ,payroll and fixed asset management
Since not so long , businesses used to maintain physical accounts books and other related records such as stock records, payroll etc. But with introduction of information technology, now accounts writing take splace either on installed software or cloud based software.
This has reduced time taken to record transactions because repetitive transactions are recorded automatically. Also, it has increased efficiency and accuracy of whole accounting system. This is because there are proper internal controls and hence early detection and correction of errors are possible.
There are tons of accounting software like SAP, Tally or even online bookkeeping services like Quickbooks , MYOB etc.
Sometimes it happens that the company wishes to get the software customized as per nature of business and processes or the company may wish to use software developed in house or through third party vendors. This is quite difficult for the company because it will know its processes and operations flow, but will be unable to set out the accounting procedures.In such a case, Chartered Accountant may act as a bridge between the company and the software development company.
CA’s role in Information Technology
Online Accounting or Accounting Software
CAs are traditionally laden with accounting and bookkeeping. Now that , Information System has been introduced , CAs have newer arenas like online bookkeeping like Quickbooks or cloud based accounting like MYOB. This is because CAs understand accounting as well as internal controls also in digital accounting system.
Banking activities are already automated and there is nothing much left in checking vouchers.Instead systems auditor needs to check several other things like hardware controls, Access controls, network control, Personnel Control etc. to assure that internal controls are places right.
This is relatively newer area, where CA can use his knowledge to act as an agent between the software development company and the client. Most of the times, CAs prescribe the process flow better as they understand both operation and nature of business and accounting policies required to be implemented.
Being a finance professional, you may think that IT is not for you. However, with rise in FinTech and newer employment opportunities as specified above, will definitely make you think twice.