Technology Will Remove The Need For Management Accountants

Document Type:Essay

Subject Area:Accounting

Document 1

This is because of the value they derive from this software. However, not everybody believes that a machine or software can actually replace an extra-ordinary accountant's work. With the rapid evolution of technology, management accountants will be replaced with accounting software which has caused great panic since people who occupy various management accounting positions do not know what lies ahead (Rotman, 2013, p. A survey conducted by the Institute of Management Accountants claim that 42% of professionals in management accounting are worried that they will be replaced by the rapidly evolving technology in this sector especially those who are tasked with billing and budgeting. Redundancy will be a common problem due to these replacements as employers seek to maximize value and minimize costs.

Sign up to view the full document!

Many are the times when human beings make errors by various factors such as omission, forgetfulness or as a result of immense pressure from the workload they may be having. Many companies still use old excel spreadsheets which are full of errors (Melard, 2014, p. However, a well-programmed accounting software can rarely make such errors since it streamlines and automates various processes. Most programs are easy to use hence improving reliability making the outcome accurate and dependable making the business owner be able to tell accurately funds available at any given time and without errors. Artificial intelligence can be defined as the way machines are normally programmed in order to think or act like human beings (Michalski, et al. , 2014, p. It then categorizes them and makes reports without the need to hire an accountant.

Sign up to view the full document!

Moreover, one is able to access financial files whenever they need them with the current technology since they can access the files from their mobile phones especially in case the business owner travels often or is required to refer to the books frequently. Moreover, using technology in management accounting is cost-effective. Employing a management accountant can prove to be a very expensive endeavor for companies. This includes tax management which is crucial for any business enterprise since payment of taxes is mandatory. Regulations concerning taxes change with time yet they have to be complied with and contended with. Technological innovations have allowed business people to worry less regarding this aspect of business since there are programs designed to manage compliance requirements embedded with calculations which are automatic on tax for payments and sales and also for withholdings for the employee payroll.

Sign up to view the full document!

This software even provides a database with tax forms that are most common where one can later file them with the tax authority automatically. Technology Will Not Reduce the Need For Management Accountants However, in as much as technology has proved to be efficient, reliable and cost-effective, it would be detrimental to replace management accountants with accounting programs. As a matter of fact, many people have to undergo training which could take weeks or even months to learn. Regardless of how smart an accounting program is, one is required to take time and interface with it. Training which is paid for is most preferred since it helps to avoid costly errors in the long run (Tudor, et al. , 2013, p. Furthermore, accounting software usually needs to be updated constantly so that it can work properly (Menu, 2017, p.

Sign up to view the full document!

There is also a risk of potential fraud for businesses using newer technologies in place for management accountants (Purda & Skillicorn, 2015, p. More information is being housed in the cloud hence giving hackers a chance to access data provided by the company and use it against them. The fact that information and data are shared between various people, it is prone to fraud. This actually puts the business assets at risk since the hackers can utilize tax identification details to access business loans and other credit cards. Moreover, there is the chance of the hackers being able to access information which could be used to pilfer money from deposits and changing data in the program. Moreover, the personal tax returns for the company are best left to an expert since mistakes usually result in fines and penalties.

Sign up to view the full document!

Conclusion In conclusion, with the rapid evolvement of technology, it might be a few years when business owners fully embrace accounting software and do away with management accountants. This is due to the fact that they are reliable, fast, error-free and cost-effective. For instance, computers have the ability to do tasks that are repetitive and tedious. Automation allows system downloads and syncing of transactions hence the ability to access financial files anywhere and anytime. In as much as this benefits are great such as reducing operating costs, increasing efficiency and providing services every time they require it, management accountants should not be replaced but should both work hand in hand to develop great financial services. This is because all of them are advantageous although they may both have their perks.

Sign up to view the full document!

From $10 to earn access

Only on Studyloop

Original template