Sahira has received employee complaints about the lengthy time it takes for her team to create financial reports. Her team explains that the computers are the problem and that the software programs are too difficult to use and that many hours of manual manipulation of data are required to complete monthly reports (Colorado State University-Global Campus, 2014, p. 6, ¶3). The management dilemma can be described as: Delays in financial reporting? (Appendix, Worksheet box 1). Upon further examination, the specific management question to be addressed is: Can financial data management be made more efficient? (Appendix, Worksheet box 2). Consequently, the research questions are: 1) How to streamline data for financial reporting? and 2) Is a new accounting software system needed? (Appendix, Worksheet box 3). Finally, a key accounting and financial management theory at play here is that of efficiency in data management to improve efficacy and timeliness of financial reporting. Management Dilemma: Delays in Financial Reporting Financial reporting delays have long been a problem for companies (Abbas, 2009). In some instances reporting delays reach crisis levels, so that owners and shareholders, as well as senior management, do not have accurate and timely financial information on company performance (Pasquali, 2012). It is also not uncommon, as in Sahira’s case, that the data needed for financial reporting has not kept up with technology, requiring manual input or manipulation of the data, or “re-keying” of data into the company’s accounting software to produce financial reports (Financial Executive, 2012), and thus delaying the timeliness of financial reporting (Pasquali, 2012), and often resulting in errors in reporting (Karabi... ... middle of paper ... ...09638180.2010.496551 Colorado State University-Global Campus. (2014). FIN 500-1 Module 1. Financial Executive. (2012). Accounting Software Delivers Mixed Results. Financial Executive, 11. France, M. (2013). CFOs need a new financial accounting system. Financial Executive, 29(10), 57-59. Karabinar, S., & Yilmaz, E. (2012). XBLR (expandable business reporting language) and traditional financial contributions to the settlement of reporting system problems. Journal Of Accounting & Taxation Studies, 5(2), 1-23. Keown, A. J., Martin, J. D., & Petty, J. W. (2014). Foundations of finance: The logic and practice of financial management (8th ed.). Upper Saddle River, NJ: Pearson. Krippendorf, K. (2004). Content analysis: An introduction to its methodology (2nd ed.). Thousand Oaks, CA: Sage. Pasquali, V. (2012). Financial reporting still plagued by delays. Global Finance, 10.
Berk, J., & DeMarzo, P. (2011). Corporate finance: The core, second edition. (2nd ed.). Boston, MA: Prentice Hall.
As technology progresses it can truly change how a business operates in terms of accounting and financial reporting. Online software has become a widely used system by many businesses around the globe. Financial reporting is essential to any business especially when seeking for potential investors or stakeholders. The reason being is because a financial report contains all of the records of how a business is performing financial wise. Likewise there are purposes of securities regulations and the main one is to disclose any schemes.
Brigham, Eugene F., and Houston, Joel F. Fundamentals of Financial Management. Second ed. Dryden, New York, © 1999.
One of the most debatable topics in the accounting industry today is the extent in which we should make the financial statements understandable to the general population. The FASB currently gears its reporting standards toward...
Stair, R.M., Reynolds, G.W., Gelinas, J.U. Jr., Sutton, S.G., Hunton, J.E., Albright, S.C., Winston, W.L. & Zappe, C. (2007) Accounting Information Systems and Financial Modelling, Thomson, South Melbourne, Victoria, Australia.
Adelman, P. J., & Marks, A. M. (2010). Entrepreneurial finance. (5 ed.). Bedford, Texas: Prentice Hall.
In conclusion, although the necessity of time and expense efficiency could be satisfied by well designed accounting softwares, companies should also look at its harm potential if it is not accompanied by accountants who able to prevent some errors such as unbalanced and wrong number contained reports which may jeopardize business performers.
A current issue in financial accounting and reporting is the issue of Integrated Reporting which can be defined as “a concise communication about how an organization’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value over the short, medium and long term” (Roberts, 2014, p.28). With more countries thinking of making Integrated Reporting mandatory, it is important to come up with effective ways of transitioning from traditional reporting to Integrated Reporting. The transition is needed as there have been major changes in the way business is conducted such as how business creates value and the context in which business operates since the current business reporting model was designed (Sharman, 2012). This literature review will, therefore, define and discuss the concept of Integrated Reporting, and examine the effect of these changes on stakeholders. The paper will answer the research question: Should all organisations make a transition from traditional reporting to Integrated Reporting? This paper answers this research question as well as investigates future research and possible suggestions as to how this research may be carried out.
Since Information technologies develop progressively, the manual accounting information system have become insufficient for decision making, as a result, business firms which operate in either developing or developed economics consider computerized accounting system as an effective mean to ensures the effectiveness and efficiency of information flow in recording, storing processing, and analyzing financial data. This research paper will highlight the concept of Accounting Information System generally, and Computerized Accounting Information system specifically.
The globalization of business has resulted in the need for compatible accounting standards that can be used internationally for financial reporting. As a result, the International Financial Reporting Standards (IFRS) were developed by the International Accounting Standards Board (IASB) to unify the various financial reporting methods and create a single accounting standard which can be applied to any financial statement worldwide (Byatt). The global standardization of financial reporting will increase the readability and enhance comparability of globally traded companies’ financial statements, without the need of conversion or translation. There are a few main differences between the International Financial Reporting Standards (IFRS) and the U.S. Generally Accepted Accounting Principles (U.S GAAP). The increasing recognition and acceptance of the International Financial Reporting Standards by accounting professionals in the United States, will affect the way in which the U.S will record financial statements in the future.
Accountants are able to make better decisions and direct business owners better on how to grow their businesses. Individuals have also benefited from the technology; one can easily access to their bank information and keep track of their expenses. Technology helped accountants eliminate papers, pens, calculations, errors and time. Today, with the help of computers, printers everything is being done faster and with very little mistakes. As technology grew, accountants have been introduced to new equipments, software, Internet based communication systems and better security systems. Most of the accountants have computers, printers, and fax machines in the offices. Everything is being calculated, stored, and organized in the computerized programs. Time is very valuable for everybody; with these inventions accountants accomplish their job responsibilities much better and faster. One does not need to travel long distances to provide finance reports; instead they can easily connect to each other via Internet and provide their results online. Beside Internet, accountants also can fax over the document to the firms they
Block, S. B., & Hirt, G. A. (2005). Foundations of financial management. (11th ed.). New York: McGraw-Hill.
Financial theories are the building blocks of today's corporate world. "The basic building blocks of finance theory lay the foundation for many modern tools used in areas such asset pricing and investment. Many of these theoretical concepts such as general equilibrium analysis, information economics and theory of contracts are firmly rooted in classical Microeconomics" (Oaktree, 2005)
The following essay aims to analyse in depth a computerised accounting system and its aspects such as its history, what technologies is based on, and how it has developed since its beginning. Other aspects such as the current state of the system and the interactions with other systems and the future of the system will also be covered in this paper.
Mired in dread by most and oft an exercise in futility, business owners spend agonizing hours tracking and paying obligations, calculating payroll, balancing checkbooks, and soliciting payments from past due accounts. From a place of naiveté, most business owners initially deny delegating these fundamental tasks to a seasoned bookkeeping professional whereby reasoning this method of business operation will improve their bottom line. Furthermore, each year a growing number of business owners find themselves scrambling in a near panic, sometimes successfully, sometimes not, to assimilate records in order to present to a CPA to meet tax deadlines. According to Jason Nazars’ article “16 Surprising Statistics