One of the main reasons behind the introduction of technology to financial administration was The Sarbanes-Oxley act which came in force already in 2002 in The USA. The act itself makes nearly next to no mention of technology but it has had a significant impact on the information technology of many companies.
The SOX main concerns of are about financial reporting since it is intricately related to a company’s information technology it has resulted in companies bettering their systems. Often despite the importance of it control management is overlooked by companies that focus most of their resources on business process control. (Anand 2007, 119-125)
Multi-user environment, local arena network, e-bill, electronic invoicing, client server system are some of the concepts of the field. These might seem frightening to the elderly but the young are on the other hand so used to these new line of technologies that it doesn’t make them freeze for a moment. They are quick to adapt to these new changes and swiftly learn new software.
Financial administration is now completely on the web. Accountants are working on browser based software and different parts of companies can access that data from anywhere. Technology has made the financial administration global. There are a few cases where the big shots of a company handle their everyday business on a laptop on a tropical Island resort while sipping Piña Colada. (Jones & Rama 2006, 493-510.)
Businesses have to constantly update and contemplate their enterprise resource planning system (ERP system) as whole unit and not only part of accounting or one part of the business. All truly successful companies like Amazon.com, Apple and Ebay work around the clock to improve their systems for example Amazon improves their customer interface quarterly. (Rahalad & Krishnan 2011, 123-140.)
The changes won’t come without expenses and new challenges. While firms are eager to adjust to the new technologies crooks do the same. A Person’s privacy is often tested from both sides. Companies are trying to protect their data from falling into wrong hands and hackers trying to obtain that data by using backdoors in the security. Furthermore, legislation puts its hands in the soup.
Here is a good article how you can make your password safe: https://www.grc.com/passwords.htm
All in all, this was a quick look in to capitalizing on technology in financial administration. Next time I’m going to discuss more detailed about protecting your privacy and how to use ip-tracing.
C.K. Rahalad & M.S. Krishnan. 2011. It uuteen aikaan. Innovaatioiden uusi aika. Helsinki: Tietosanoma. 123–140.
Jones & Rama. 2006. Using Technology to enhance Business process. Accounting information systetems. Thomson South-Western. 493-510.
Sanjay Anand. 2007. Technology solutions. Essentials of Sarbanes-Oxley. London: John Wiley & Sons, inc. 119-125.
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