Impact of Technology in Accounting

University of Mumbai

“A Study of Impact of Technology on Accounting”

A Research Based Work Project Submitted

For M.Com in Accountancy

Under the Faculty of Commerce

By

Mr. Suyog Sandeep Ranade

Under the Guidance of

Prof. Mr. Swaroop Laxman Ghaisas.

Ratnagiri Education Society’s

R.P. Gogate College of Arts and R.V. Jogalekar College of Commerce

Advocate N.V. Joshi Road, Near Ratnagiri district court, Ratnagiri-415612

MCOM PART-2 SEM III

December-2021

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 1

Impact of Technology in Accounting

“A Study of Impact of Technology on Accounting”

A Project Submitted to

University of Mumbai for partial completion of the degree of

Master in Commerce

Under the Faculty of Commerce

By

Mr Suyog Sandeep Ranade

Under the Guiding Teacher

Prof. Mr. Swaroop Laxman Ghaisas.

R. V. Jogalekar College of Commerce,

Ratnagiri December-2021

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 2

Impact of Technology in Accounting

Index

Chapter Title of Chapter Page

No. Nos.
01 Introduction
1.1 Topic Selection and Relevance of Study 8
1.2 Definition 9
1.3 History of Accounting 11
1.4 Overview of Indian Accounting System 20
1.5 Difference Between Traditional Approach and 27
Modern Approach of Accounting
1.6 ICT & Accounting 28
1.7 Accounting Softwares in India & its benefits 46
02 Research Methodology
2.1 Objectives of Research Proposal 55
2.2 Research Methodology 55
2.3 Hypothesis 55
2.4 Scope of study 56
2.5 Limitations of study 56
2.6 Significance of Research Proposal 56
03 Review of Literature 58
04 Data Analysis and Interpretation
4.1 Primary Data Analysis 64
05 Findings and Conclusions
5.1 Findings 82
5.2 Conclusions 82
06 Bibliography 84

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 3

Impact of Technology in Accounting

Declaration by learner

I the undersigned Mr Suyog Sandeep Ranadehere by, declare that the

work embodied in this project work titled “Impact of Technology onAccounting”
forms my own contribution to the research work carried out under the guidance of
Prof. Mr. Swaroop Laxman Ghaisasis a result of my own research work and has not
been previously submitted to any University for any other Degree/Diploma to this or
any other University.
Wherever reference has been made to previous work of others, it has
been clearly indicated as such and included in the bibliography.
I, here further declare that all information of this document has been
obtained and presented in accordance with academic rules and ethical conduct.

Mr. Suyog Sandeep Ranade.

Certified by

Prof. Mr. Swaroop Laxman Ghaisas.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 4

Impact of Technology in Accounting

Ratnagiri education’s Society’s

GOAGATE JOGALEKAR COLLEGE, RATNAGIRI

(Affiliated to the University of Mumbai)

Advocate N.V. Joshi Road, Near Ratnagiri District Court,

Ratnagiri, Maharashtra Phone Number- (02352)-221311/222999

Email- [email protected]

Certificate

This is to certify that Mr. Suyog Sandeep Ranade has worked and duly
completed his Project Work for the degree of Master in Commerce under the faculty
of Commerce in the subject of Accounting and his project is entitled “Impact of
Technology on Accounting” under my supervision.
I further certify that the entire work has been done by the learner under
my guidance and that no part of it has been submitted previously for any Degree or
Diploma of any University.
It is his own work and facts reported by his personal findings and
investigation.

Name and Signature of

Guiding Teacher

Date of Submission:

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 5

Impact of Technology in Accounting

Acknowledgements

With the completion of my project entitled “Impact of Technology on

Accounting”, I am very much thankful to each and every one who have helped me.
To list who all have helped me is difficult because they are so numerous and the depth
is so enormous.
I take this opportunity to thank the University of Mumbai for giving
me chance to do this project.
I would like to extend my gratitude to Principal, Dr. P.P. Kulkarni. I
would also like to acknowledge my gratitude to Vice Principle (Commerce) Dr.
Y.K. Aowte for cooperation, support and for providing the necessary facilities for
completion of my project.
I express my sincere thanks to my Coordinator Prof. Mr. Swaroop
Ghaisas who had supported me very much in completion of my project.
I would like to thank my College Library, for having provided various
reference books and magazines related to my project.
Lastly, I would like to thank all my Friends and each and every one
who have helped me directly or indirectly to complete this project. Last but not the
least I would like to thank my Parents for always being my inspiration.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 6

Impact of Technology in Accounting

CHAPTER 1

INTRODUCTION

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 7

Impact of Technology in Accounting

Introduction
Accounting system on its own is very tasking as it entails dealing with great
figures and numbers, bulk calculations and much writing but ICT has made it easier to
maintaining the system. An accounting information system is generally a computer-
based method for tracking accounting activity in conjunction with information
technology resources. The resulting statistical reports can be used internally by
management or externally by other interested parties including investors, creditors and
tax authorities .Accounting system and Accounting Information System are used
interchangeably as they serve the same purpose. Accounting Information System is
the most frequently used due to the high adoption of information technology in
accounting systems in recent times.

1.1 Topic Selection And Relevance To Study

Accounting is that process of recording , summarizing , analyzing and
reporting the financial transactions related to business . It explains how a business
organization records , organizes and reports these transactions to regulators and other
parties. Basic knowledge of accounting is important to understand financial terms and
to participate in business world . in recent times the usage of computers and other
advanced technology adopted in most practices including accounting . Prior to this
accountants were vigorosly involved in all accounting activies as the traditional
methods were in place . Daily records had kept by humans preparation of financial
statement done manualy by accountant. The implementation of technology taken
drastic change in Indian Accounting Systeam. Accounting can be defined as keeping
records of all financial transactions related to an individual or an entity.
Everyone uses accounting in their own way like individuals may use accouting
to maintain their personal budget , reconcile their monthly credits and balance their
checkbooks for future consistency . Whereas a business entity may use accounting
methodologies to analyze its income and expense items and to determine its financial
position and performance throughout the period . On a broad basis , accounting can be
understood as a language of business for making financial decisions . It’s a process of
measuring the financial performance and position of business and reporting the results
to its users which can be internal – owners , management , employees, etc. and
external- inverstors , creditors , regulators , etc.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 8

Impact of Technology in Accounting

1.2 Definitions

ICT

ICT is an acronym that stands for Information and Communication Technology.ICT is

the integration of information processing , computing and communication
technologies.ICT is to consider all the uses of digital technology that already exist to
help individuals ,Businesses and orgainizations . ICT is defined as computer based
tools adopted to workBy people with the communication and information processing
requests of an organization.It incorporates the network , Computer software and
hardware , and numerous other devicesThat translate information text , sound ,images
and motion into digital form. ICT are devices ,Tools and resources adopted to
communicate , create , share , manage and circulate information.

ACCOUNTING

Accounting is the process of recording financial transaction to a certain firm or

business. It includes summarizing ,analyzing ,and regulators ,and tax collection
entities.Accounting is a profession whose core responsibility is to help business
maintain accurateAnd timely records of their finances . Accountants are responsible
for maintaining records Of acompanys daily transactions. Also arranging those
transactions into financial statements Such as balance sheet , income statement , and
statement of cash flows. Accountants also Provide other services , such as performing
periodic audit.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 9

Impact of Technology in Accounting

Contents
1.3.1History
1.3.2 Accounting
1.4 Overview of Indian Accounting System
4.Difference Between of Traditional And Modern System
5.Information and communication technology & Accounting
5.1 How IT used in accounting
5.2 a)Definition
b)Components of IT
c)Elements of IT
d)Categaries of IT
5.3 Impact of ICT on Accounting
5.4 Challenges in adoption & implementation of IT
5.5 Computerise Accounting
5.6 E – accounting
6. Accouting softwares in India & its Benefits
6.1 Tally ERP9
6.2 quickbooks
6.3 Zoho books
6.4 Marg ERP9+
6.5 Vyapar

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 10

Impact of Technology in Accounting

1.3.1 Brief History of Accounting

The history of accounting or accountancy is thousands of years old and can be

traced to ancient civilization. The early development of accounting dates back to
ancient Mesopotamia, and is closely related to developments in writing, counting and
money and early auditing systems by the ancient Egyptians and Babylonians. By the
time of the Emperor Augustus, the Roman government had access to detailed
financial information.
In India Chanakya wrote a manuscript similar to a financial managementbook,
during the period of the Mauryan Empire. His book “Arthashasthra” contains few
detailed aspets of maintaining books of accounts for a Soveregin State.
The Italian Luca Pacioli, recognized as The Father of accounting and
bookkeeping was the first person to publish a work on double-entry bookkeeping, and
introduced the field in Italy.
The modern profession of the chartered accountant or iginated in Scotland in
the nineteenth century. Accountants often belonged to the same associations as
solicitors, who often offered accounting had similarities to today’s forensic
accounting. Accounting began to transiton into an organized profession in the
nineteenth century, with local professional bodies in England merging to form the
Institute of Chartered Accountants in England and Wales in 1880.
Accounting records dating back more than 7,000 years have been found in
Mesopotamia, and documents from ancient Mesopotamia show list of expenditures,
and goods received and traded. The development of accounting, along with that of
money and numbers, may be related to the taxation and trading activities of temples:
The early development of accounting was closely related to developments in
writing, counting, and money. In particular, there is evidence that a key step in the
development of counting- the transition from concrete to abstract counting- was
related to the early development of accounting and money and took place in
Mesopotamia.
Other early accounting records were also found in the ruins of ancient
Babylon, Assyria and Sumeria, which date back more than 7,000 years. The people of
that time relied on primitive accounting methods to record the growth of crops
and herds.
R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 11
Impact of Technology in Accounting

Because there was a natural season to farming and herding, it was easy to count and
determine of a surplus had been gained after the crops had been harvested or the
young animals weaned.
Between the 4th millennium BC and the 3rd millennium BC, the ruling leaders
and priests in ancients Iran had people oversee financial matters. In Godin Tepe and
Tepe Yahya, cylindrical tokens that were used for bookkeeping on clay scripts were
found in buildings that had large rooms for storage of crops. In Godin Tepe’s
findings, the scripts only contained tables with figures, while in Tepe Yahya’s
findings, the scripts also contained graphical representations. The invention of a form
of bookkeeping using clay tokens represented a huge cognitive leap for mankind.
During the 1st millennium BC, the expansion of commerce and business
expanded the role of the accountant. The Phoenicians invented a phonetic alphabet
“probably for bookkeeping purposes”, and there is evidence that an individual in
ancient Egypt held the title “comptroller of the scribes”. There is also evidence for an
early form of accounting in the Old Testament; for example the Book of Exodus
describes Moses engaging Ithamar to account for the materials that had been
contributed towards the building of the tabernacle.
By about the 4th century BC, the ancient Egyptians and Babylonians had
auditing systems for checking movement in and out of storehouses, including oral
“audit reports”, resulting in the term “audit reports”, resulting in the term “auditor”
(from audire, to hear in Latin). By the 2 nd century BC, the importance of taxation had
created a need for the recording of payments, and the Rosetta Stone also includes a
description of a tax revolt.

1.3.2 Accounting:

Meaning of Accounting:

Accounting is a wider concept than Book-keeping. Book-keeping is the recoding

branch of Accountancy. Accountancy includes Book-keeping and classifying,
summarizing and interpreting of the business transactions. It makes easy to take
decisions relating to business. Accountancy starts where book-keeping ends.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 12

Impact of Technology in Accounting

Definition:
1) “Accountancy refers to the entire body of the theory and process of
accounting”. By Kohler.
2) Prof. Robert N. Anthony has defined accounting as “Nearly every business
enterprise has an accounting system. It is a means of collecting, summarising,
analysing and reporting in monetary terms information about the business
transactions”.

Basis of Accounting:

Cash Basis:
Accounts are maintained on various basis. Cash basis is one of the most popular basis
whereby income is recorded when cash is actually received and expenses are recorded
when cash is actually paid. Every cash comes in the business and every cash goes out
from the business is recorded with its specific purpose. Under this system only cash
transactions are recorded.

Accrual Basis:

Income is recorded when it accrues (is earned) and expenses are recorded when they
become payable. Cash as well as credit transactions are recorded. Accrual basis
records income and expenses as they are earned or incurred and not as per amount
received or paid. This is also known as “Mercantile Basis of Accounting

Features of Accounting

1. Applicability

It is expected that the accounting principles should be feasible, predictable, and

applicable. This should be easy to apply in the accounting system and should be easy
enough to be implemented by everyone.For example, if there are fixed asset shown in

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 13

Impact of Technology in Accounting

the balance sheet, then the replacement cost will be difficult, and variation and people
will cause variation and market price. It should not change according to the people but
should remain the same.

2. Recording

Accounting has a unique feature of recording every financial transaction. It provides a

provision of recording the transaction in a detailed manner which can be used by the
companies. The recording is systematic and can be done anyone who is adept in
accounting basics and laws.The recording is done by similar grouping entries under a
single title which makes it easy for classifying all financial transactions.

3. Classification

Accounting provides a feature of classifying all of the financial transactions into a

different category. These categories are grouped according to their similarities in one
place. For example, all of the payments received, and the receipts will reflect in the
cash book or memo book.This helps to categorize all similar transaction under one
heading, which helps in finding them makes it easier. The books in which the process
of opening the accounts is completed is called a ledger.

4. Usefulness

The accounting principles are found to be useful and provide important information to
the one who tries to find it in a simple way. There are different categories and
headings under which different transactions are classified, which makes it for the
finder to locate a particular transaction easy.These entries are useful to determine and
locate the nature of the transaction and to analyze its effect on the overall balance
sheet.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 14

Impact of Technology in Accounting

5. Objectivity

A principal has relevance when it has figures and facts. Accounting principles full of
figures and supporting facts which makes it very relevant. It is ensured that
personalwhims and biases are not included in the case of accounting, which makes it
bias-free.This is the reason why accounting is said to be objective.

6. Summaries

Accounting is known to provide summaries of relevant and complex financial

statements. Statements of cash flow, fund flow, and balance sheet are summarized
simply and presented to the investors and the public.These statements are useful for
investors to make investing decisions. Summaries also provide exams on the overall
financial health of the organization without taking a lot of time.A statement such as
profit and loss statement and balance sheet are mirrors of the company, and the
summaries are considered to be very important statements.

7. Validation

All the statements which are generated by a certified auditor for finance department or
even a bookkeeper can be audited and confirmed for their validity. Every entry of the
accounting system is related to the financial transaction of the company, which is why
the financial statement is a glimpse into the mirror of the organization.All of these
entries can be validated and confirmed to test the validity of the statement.

8. Interpretation

A summary of the financial statement can be read by any knowledgeable person and
can be interpreted. The interpretation is universal and does not differ from person to
person or auditor to auditor. It remains constant irrespective of the person interpreting
it which gives it a feature of universality.The interpretation can be analyzed and found
out whether the financial health of the organization is in a good position or a bad

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 15

Impact of Technology in Accounting

position.The performance of the business can be determined with the help of

accounting statements.

Branches of Accounting:

In order to satisfy the needs of different people interested in the accounting

information, different branches of accounting have been developed.

Branches of
Accounting

Financial Management
Cost Accounting
Accounting Accounting

Let us discuss these Branches :

Financial Accounting:

It is the original form of accounting, It is mainly confined to the presentation of

financial satatements for the use of outsider like creditors, bank and financial
institutions. It is the process of identifying, measuring recording, classifying,
summarizing, analyzing interpreting and communicating the financial transactions
and events through financial statements.The purpose of this branch of accounting is to
keep systematic records to ascertain financial performance and financial position and
to communicate the accounting information to the interested parties. The financial
statements i.e. Profit and Loss Account and the Balance Sheet show the manner in
which operatiions of the business have been carried out during a specified period.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 16

Impact of Technology in Accounting

Cost Accounting:

It is the process of accounting and controlling the cost of a product, operation of

function. The purpose of this branch of accounting is to ascertain the cost, to control
the cost and to communicate information for decision.

Management Accounting:

It is an accounting for the management i.e. accounting which provides necessary

information to the top level management for discharging its functions, Management
accounting covers various areas such as cost accounting, budgetary control, inventory
control, statistical methods, internal auditing etc. The purpose of this branch of
accounting is supply all information that management may need in taking decisions
and to evaluate the impact of its decisions and actions.

Basic Rules of Accounting:

Basic Rules of
Accounting

Personal Real Nominal

Accounts Accounts Accounts
Debit the
Debit what Debit all
reciver comes in expenses &
credit the Credit what goes losses
giver out Credit all
incomes & gains

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 17

Impact of Technology in Accounting

Types of Accounting System

There are various types of accounting system. The size of an organization, nature of
business, extent of computerization and management style determine the choice of
system. They have been categorized in to 3, namely:

Manual System:

This system refers to one where there is no computer involved in the accounting
process. Financial transactions and reports are recorded and prepared manually.
This is most common among small businesses. The accountants and relevantworkers
are involved in all the accounting processes which form a great work load on them.
This method helps to save cost of acquiring computers and software programs.

Legacy System:

This system can be said to be an old-fashioned computerized system. It existed before

information technology became so sophisticated and engulfing in the world. It has a
purpose of storing old time information of organizations thereby serving as a back-up
system. But due to its old nature, maintenance cost is high as hardware and software
parts of this system have become obsolete.

Computerized System

This is a system that makes use of computers and software programs for all
accounting processes. There is little human effort from the accountant that is needed
as the IT experts and specialists are most important to train theaccountant to use
the system efficiently. This system incurs cost on the business investing in the
technical infrastructures. Computerised system is most common in large
organizations, and in most organizations these days.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 18

Impact of Technology in Accounting

Elements of Accounting System

There are six elements that make up an accounting system

People –
these are reffered to as the vsysteam users

Procedure and Instructions –

these are the methods forvretriving and processing data

Data –
this is information relevant to the organizations business practice

Software –
they are computer programs used to process data

Information Technology Infrastructure –

these are hardwere used to operate the system.

The Concept of Electronic Data Processing

Electronic Data Processing (EDP) is a process by which raw data and facts are
converted into information that is meaningful to management and accountants to
make decisions. EDP is a function of planning, recording, managing and reporting
business transactions using computer and associated peripherals. In accounting
practice, the accountant gets data from source documents which includes the receipt,
invoice, payment vouchers, written cheques and others, before they are imputed into
the computer and processed
into information that are relevant to the users as output.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 19

Impact of Technology in Accounting

Data collection
(source document)

Storage
Input
(Turnaround
(Data)
document)

Output
Processing
(information)

1.4 Overview of Indian Accounting System

Accounting is the process of recording financial transaction to a certain firm or

business. It includes summarizing ,analyzing ,and regulators ,and tax collection
entities.Accounting is a profession whose core responsibility is to help business
maintain accurateAnd timely records of their finances . Accountants are responsible
for maintaining records Of acompanys daily transactions. Also arranging those
transactions into financial statements Such as balance sheet , income statement , and
statement of cash flows. Accountants also Provide other services , such as performing
periodic audit.
Business activities have also increased along with it and it was very difficult for any
business person to remember all the transactions of the day. So there was a need to
record all business happening in a systematic way and this job of recording of
transactions has been later on called as “Book-Keeping”.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 20

Impact of Technology in Accounting

Meaning and Definition –

Book-Keeping is a process of recording business transactions in the books of accounts

in a very systematic manner.All the transactions are recorded datewise. A person who
records the same is called as an Accountant who has to show the business results from
such records at the end of financial year which ends on 31st March every year. In India
this system of book-keeping was in operation from 23 rd centuries ago at the time of
Chandragupta Maurya. Chankya (Kautilya) was recording the accounting
transactions. He wrote a famous book known as “Arthashashtra”. After some years
this system was called as “Deshi Nama” in certain parts of our country. The Double
entry system of book-keeping was originated in Italy, developed by Luca De
BergoPacioli in the year 1494. Book-keeping is an ary of recording day-to-day
business transactions in the books of account in a systematic manner.

Definition of Book-keeping

R.N. Carter

“Book-keeping is the science and art of correctly recording in the books of account,
all those business transactions that results in transfer of money’s worth.”

Spicer & Peglar:

“Book-keeping is the systematic recording of the transactions in a manner enabling

the financial relationship of a business with otherpersons to be clearly disclosed and
the cumulative effect of the transactions on the financial position of the business itself
can be correctly ascertained.”

Features of Book-keeping-
1. It is the process of recording business transactions.
2. Monetary transactions are only recorded.
3. Recording is made in given set of books of accounts.
4. Record is prepared for a specific period but presented for future references.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 21

 Impact of Technology in Accounting

It is an art of recording business transactions scientifically.

Importance of Book-keeping-

The importance of Book-keeping is as follow:

1) Record

: A businessman cannot remember all the transactions for a quite long time. Due
to Book-keeping it is not necessary to remember the transactions but record is
kept permanently and systematically.

2) Financial Information:

Book-keeping is useful to get the financial information of Profit, Loss, Assets,

Liabilities, Stock and Investments etc.

3) Decision Making:

Book-keeping makes available required business information which helps

in ‘Decision Making’ in business.

4) Controlling:

With the help of available financial information and figures the executives
of the business can control the business.

5) Evidence:

Court considers the record provided by businessman as an evidence in case of

any disputes.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 22

Impact of Technology in Accounting

6) Comparison:

A businessman can do yearly comparative study to understand the

business position over the years. He can also do the comparative study
with other business units.Tax Liability: Book-keeping is useful to find out
tax liability in case of Sales Tax, Income Tax, Property Tax, etc.

Study of Double Entry Book-keeping System:

The credit of evoliving the present Double Entry Book-keeping System goes
to a philosopher turned mathematician Italian merchant “Luca D Bargo Pacioli” in
1494 Tis System is baded on the fact that there are two aspects of every business
transactions. Every transaction involved at least twopersons or Parties or accounts.
One is the receiver of the benefit and the other is the give r of the benefit. If
something comes in the business it will go out from other business, recording dual
aspects of business transactiions in the books of accounts in terms of Debit Credit is
known as “Double Entry System of Book-Keeping”.
According to modern approach every business transaction is concerned with
assets,liabilitirs, capital, expenses and revenue individually or collectively. Each
transaction increases or dcreases one of them or increeeeeases one and decreases the
other. So increase in assets and expeses are debited and decrease in assets and
expenses are credited.
There are different methods of recording accounting information. They are as follows.

1) Indian system:

It is the most conventional system of accounting. It is also called MahajaniMarwadi\

Deshi Nama system. Under this system reords are maintained in Indian Language,
Such as Marathi, Hindi, Marwadi, Urdu, etc. Transactiions are recorded in long books
known as Kird and BahiKhata. This system of accounting is not based on Double
Entry system. Though this system is not scientific, it is still being used in India in
small sized business.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 23

Impact of Technology in Accounting

2) English Entry Systsem:

A) Single Entry System:

Under this system only Cash Book and personal Accounts, are maintained. Tis
system is known as incomplete system of recording because it changes with the
convenience of businessman for recording transations. Therefore it is not a scientific
and complete method of recording. It cannot provide accurate information about the
financial position of business. It is unscientific method having number of defects. It is
suitable to small traders.

B) Double Entry System

: Double Entry System of Book-keeping has emerged in process of evolution of

various accounting techiques. It is the most perfect, scientific and complete system of
recording business transactions. It assumes that every transaction has two aspects.
These two aspects affect two accounts

Definition of Double Entry System:

Some of the important definitions of Double Entry system are,“Every business

transaction has a two fold effect and that it affects two accounts in opposite diretiions
and if a complete record is to be made of each such transatioin it would been
necessary to debit one account and fcredit another account. It is this recording of two
fold effect of every transaction that has given rise to the term Double Entry”- J.R.
Batliboi

Accounting System

The roots of accounting system in India had been evolved in early sixteenth century
when India had built trade links with Europe and central Asia. Later, with entry of
east India company had made a huge impact on trade and commerce of India. The
British raj (rule) states that the accounting and financial practice between India and

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 24

Impact of Technology in Accounting

England was almost similar. Moreover at the time of independence India in 1947,
there were some changes in accounting practices to match up to the Indian economy
.The accounting practice varies from different small unorganized rural areas and small
scale urban industrial sector .In India, large number of businesses is having a
conservative outlook and don't want to disclose any financial information regarding
their company due to having fear competitors and maintain privacy .

Current Accounting practice in India:

All the accounting practices done by the public and the organized private sector
companies are based on the rules of The Companies Act,1956, and in many criteria
they are similar to International Accounting Standards. The important amendments in
this act which are modified are in the years 1965 and 1969, which introduced the rules
and regulations of preparing cost accounts and the cost audit requirements. There have
always been research efforts from some organizations to match the changing need of
accounting system with rapidly changing economic environment. These organizations
include 'Indian accounting association', 'Indian council of social science research' and
'Institute of Chartered Accountants of India' (ICAI). Besides all these organizations
there is always been a cultural and political influence on Indian accounting practices.

RoIe of ICAI:

Institute of Chartered Accountants of India (ICAI) is a legal body came into existence
under chartered accountants act of, with the purpose for regulating the chartered
accountants professionin India. As being a long existence in Indian economy ICAI
has made it'srecognition as a leading accounting body because of it'scontribution in
maintaining high accounting, auditing, providing education and setting up of ethical
standards. Until now ICAI has issued 32 different standards (ICAI, 2010). ICAI has
again brought a significant change by introducing The Accounting Standard Board
(ASB) in 1977,to harmonize diverse accounting practices of India and to bring them
together to a common platform with the global practices.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 25

Impact of Technology in Accounting

Overview of Indian Accounting System

exchange
•(
Barter Systeam of goods)

Exchane
•(
of goods
Currency with
currency)

Recording
data
manualy

Preparation
of financial
statement
manualy

Emergence of
ICT in all
sectorts

Analyzing and
Summerizing
data effectively

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 26

Impact of Technology in Accounting

1.5 Difference between Traditional and Modern approach to

financial statement analysis

Sr. Points Traditional Approach Modern Approach

No.
1. Meaning Traditional approach to Morden approach to financial
financial statement statement analysis includes
analysis includes the cash Flow Statement, Funds
Profit and Loss Account cash Flow statement, Funds
and the Balance Sheet Flow statement, Ratio
Analysis, Budetry Control etc.
2. Method of Preparation of these Preparation of these
Preparation statements are very simple statements are not so simple
3. Supplying These statements are not These statement are quite
Information so informative. informative.
4. Reliability Traditional approach to These statements are proved
financial statement to be quite reliable and
analysis are neither so dependable for the purpose of
reliable nor so dependable analysis of financial
for the purpose of analysis statements
of financial statements

5. Information The detailed information These statements, no doubt,

relating to financial exhibit the required material
information is not information for the purpose of
available from these analysis of financial
statements as they do not statements.
exhibit the required
material information.
6. Presentation Presentation of these Presentation of these
statements is very old. statements is quite new and
more informative than the
Traditional Approach.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 27

Impact of Technology in Accounting

7. Specificity An individual’s specific Modern approach to financial

information, say, the statement analysis is quite
liquidity position of a possible to understand any
firm, is not available fro specific information from
these statements these statements, say, the
accurately. liquidity position.
8. Use These statements are These statements are usually
usually prepared by the re-pared by the big business
small firms houses.
9. Area Of Under Traditional Under Modern approach to
Application approach to financial financial statement analysis,
statement analysis, profit in addition to the benefits that
and Loss Account or are available under traditional
Income Statement helps us approach, the other material
to known the result of the information viz. liquidity
operation at the end of the position, solvency
year. The other statement, position,profitability and
viz. the Balance Sheet, management efficiency
helps us to understand the position can easily be
financial position as a understood accurately.
whole at the end of the
financial year.

10. Preparation and Preparation and Preparation and presentation

Presentation presentation of these of these statement are not so
statements are quite simple and the preparation
simple and mandatory for
all firms

1.6 Information and communication technology & Accounting

How Information Technology used in accounting?

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 28

Impact of Technology in Accounting

Instant Access to Business Information

Cloud computing keeps business information in a secured internet server. When an
accountant uses cloud computing solutions, the business owner has immediate access
via his computer to all accounting information. Any credits or debits made or notated
by either party are immediately available for review. This accessibility makes it
possible for business owners to review the valuable financial information needed to
run operations with no delay.

Mobility and Reduced Travel Time

Many small-business owners don't need a full-time in-house accountant. With the
internet and advances in information technology, a virtual accountant is as effective
as an in-person accountant. This way of doing business reduces overhead and travel
time. Business owners save money because information technology brings
accountants directly to the company finances without travel time, which reduces
overhead.

Bank Information Accessibility

Major accounting programs and banks sync with a few mouse clicks. Online
accessibility provides the bank information to the accountant as soon as it is available,
which streamlines the process of monthly bank account balancing. The accountant
only needs to go in and troubleshoot lines items that don't make sense. Business
records stay up to date, and the accountant's life at tax time a lot easier, which
minimizes costs to the company

Document Scanning and Signing

Accountants need access to a variety of business documents. Previously, when

accounting was handled remotely, accessing this information took a lot of time and
energy from both sides. With signing and scanning technologies, information can be
uploaded and stored in the cloud. Clients can modify and sign information as

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 29

Impact of Technology in Accounting

needed.For example, an employee may not have signed a Form W-9 when hired, but
this form is necessary for payroll records. With document-signing abilities, the
accountant can send the employee an email requesting a digital signature. This
process is easy and saves everyone time while remaining compliant with IRS
regulations. Online document scanning and signing is another way information
technology streamlines the accounting process for accountants and small-business
owners.

Business Software Advancements

Accounting and tax software advancements have streamlined the entire process of
accounting and filing returns. Most accounting software integrates with most
corporate tax software, which means the data is quickly segmented and categorized
in the appropriate tax categories. Not only does this make tax filing faster, but it also
makes it more accurate. As long as the data in the accounting software is categorized
correctly, the information going into the tax software is entered correctly.

a) Definition & Meaning

ICT is an acronym that stands for Information and Communication Technology.ICT is

the integration of information processing , computing and communication
technologies.ICT is to consider all the uses of digital technology that already exist to
help individuals ,Businesses and orgainizations. ICT is defined as computer based
tools adopted to work By people with the communication and information processing
requests of an organization .It incorporates the network , Computer software and
hardware , and numerous other devices That translate information text , sound ,images
and motion into digital form. ICT are devices ,Tools and resources adopted to
communicate , create , share , manage and circulate information.

b) Components of IT

Components of Information Technology

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 30

Impact of Technology in Accounting

Hardware:
This refers to physical, tangible and touchable components. It is the part that can be
touched and seen. They can be further classified into 4 groups, which are:

Input devices:
These are hardware devices used to send data into the computer. Examples are light
pen, keyboard and mouse

Output devices:
These are hardware devices through which information is sent out of the computer.
They include speakers, printers and monitors.

Central Processing Unit (CPU):

This is the part of the computer that performs tasks as it comprises of the
microprocessor which is the brain of the computer.

Storage devices:
These are hardware components that store data. There are two type- Primary (stores
information temporarily) and Secondary (stores information permanently). Examples
are RAM and ROM respectively.

Software:
This refers to intangible components that can only be seen. They include computer
programs and codes that control the hardware devices. A computer program is a set of
instructions written to perform a specific task. There are three categories of software,
they are:
System software;
This provides the basic functionality of the computer. It is made up of the Operating
system and Support system with Linux and Diagnostic tools as examples respectively.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 31

Impact of Technology in Accounting

Application software;
This helps the users to perform specific tasks. Examples are Web browsers and Media
development software.

Programing software;
This is used by software developers to create, debug, maintain and support

Data:
This refers to raw fact and figures that are processed into information. They are
generally stored in the electronic devices until they are needed. An example is
NAME.Procedures: these are the laid down rules and regulations that govern the way
information is processed and exchanged.

Internet/Network:
The internet is a global system of interconnected computer networks that use the
standard internet protocol suite or other network to link several billion devices
worldwide.

People:

This refers to the man-power that is involved in the steps of IT activities. They probably
determine the success or failure of information systems.
.
C) Elements Of IT

Elements of I.T
The elements of Information Technology are

Computer Technology

A computer is an electronic device that is capable of storing and processing

information in accordance with a set of instructions.Computer technology is defined as
the activity

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 32

Impact of Technology in Accounting

of designing and constructing and programming computers. It has caused massive

developments in the transmission of information. In these recent times, you either live
with computers or are left behind. The usage of computers now brings about
accuracy, precision and efficiency of data.

Communication Technology

Communication is the act of communicating- the share or exchange of information.

It is a process of exchanging facts, ideas, and opinions amongst individuals.
Communication technology is defined as the activity of designing and constructing
and maintaining communication systems. This involves communicating using
electrical devices. Due to the development of information technology, means of
communication have also advanced with the use of telecommunication devices.

Telecommunication Technology

Telecommunication is the transfer of information across locations through

electronic means. Telecommunication technology refers to techniques and devices
that are used to transmit information over long distances via wire, radio or satellite
without loss or damage of information due to interference or noise. The major trend
now in telecommunications is a shift from mechanical to electrical, and in electrical,
from analogue to digital modes of transmission.

Computer Communication Technology

Computer communication technology relays the convergence between computing

and communication. Communication is the exchange of information. As computing
is being done, information is being transformed and can be transferred. It is hard
to distinguish where computing begins and where communication stops as they are
both intertwined. Recent developments in computer and communication technology
have led to a higher degree of information management.

d)Categories of Information Technology

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 33

Impact of Technology in Accounting

Function I.T

This refers to technologies that make it easier to perform singular tasks. They enhance
the efficiency of such tasks. These technologies are mostly used by accountants,
which is most relevant to this study and other professionals such as design engineers
and doctors. The most common forms of function IT are Word processors and spread
sheets.

Network I.T

This refers to technologies that provide media for people to communicate. It is similar
to communication technology as explained in the elements of IT earlier. Network
technologies allow for users tointeract as they want without limitations. They include
emails, instant messaging and blogs.

Enterprise I.T

These are technologies adopted by organizations to manage interactions among

employees or with business partners. They are purchased and implemented by the
organizations. They constitute of applications that specialise in business processes
and enhance business communications.business events and transactions. This system
is made up of all the people and machines informed in accounting information.
From the Business Dictionary, it is referred to as ‘an organized set of manual and
computerized accounting methods, procedures, and controls established to gather,
record, classify, analyse, summarize, interpret and present accurate and timely
financial data for management decisions’. An accounting system is used to manage
the income, expenses and funding of a business. In old times, accounting systems
were commonly manual but now they are mostly computer-based.

Impact Of IT on Accounting

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 34

Impact of Technology in Accounting

Impact of ICT on Accounting System

Speed:

Compared to manual accounting systems, computerised accounting systems are

much faster. Information using accounting software does not have to be imputed at
every instance as it is stored the first time, thereby processing information faster.
Calculations are done automatically which saves times also.

Cost:

ICT has increased the cost of accounting system as expenses are incurred on purchase
of computer hardware and software.

Reliability:

ICT has provided accounting system with a high level of reliability of accounting
information as a result of valid procedures that are efficient and effective.

Back-Up:

There is greater assurance of a back-up of all information as ICT provides measures to

store data more than once easily. If one source gets lost, you can rely on another
source to be as accurate.

Flexibility:

ICT on accounting system has provided a less rigid form of keeping accounting
information. As there are various accounting software, an accounting process can
be done in diverse manner. There is no one-way method.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 35

Impact of Technology in Accounting

Timeliness:

Financial information can be gotten easily at the time when they are required with
ICT. As similar information have been classified and stored precisely, it is easy to
access when needed.

Security:

ICT provides a great deal of security of information compared to manual systems.

There is high level of privacy and confidentiality. Information is limited to only those
authorized.

Efficiency:

In general, accounting system is more efficient with ICT, due to increased accuracy
of financial information as computers do most of the work, reducing human error.

Challenges in Adoption & Implementation of Information

Technology

Despite the great impact ICT has had on accounting system and organizational
performance, there are still some drawbacks. This part of the study covers the
sources of challenges that arise when it comes to adopting and implementing IT in
business organizations.
They are:

Infrastructure:

In order to set up an information technology system, all the components of IT are

required. IT infrastructure here also includes IT experts that can design, install, fix
and maintain the systems and special IT personnel to maximize the usage of such
technologies and systems and even train others. A company that is unable to provide

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 36

Impact of Technology in Accounting

such infrastructures cannot enjoy the maximum benefit of adopting IT. The absence of
the required elements such as communication and computer technologies in
organizations makes IT adoption difficult.

Training and Qualification:

In most organizations, there is great investment in IT, which means that the staff and
workers of such organizations have to be trained and qualified in order to make
efficient use of the new technologies .It is not easy to continuously train staff as it of
great expense and cost to the organization, and where the workers lack required
qualifications and skills, there isdifficulty in implementing IT.

Adaptability and Responsiveness:

Even when organizations invest in training of their staff to boost their

qualifications, it is an entirely different aspect for the workers to adapt very well
changes and relay positive responses. In a situation where the workers in the
company are not willing to go along with the change and are unresponsive, they tend
to be less productive and so therefore the obvious benefits of adopting IT in the
system would be buried.

Management Systems:

In organizational settings where the management systems are rigid, IT adoption and
implementation is hard. Here, the management is not willing to change and evolve
with the world. In such organizations, there is little or no IT system present. If such
management continue like that, eventually the business will become irrelevant and
become less competitive. To avoid this, a management system ought to be volatile, in
order to influence the lower level workers positively to become IT inclined.

Cost:

ICT is great investment. It involves investing money, time, intellect and others. There
is a cost on acquiring the components such as the hardware, and setting up the

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 37

Impact of Technology in Accounting

software. Cost is Incurred on maintenance of such components and elements.

Additional cost is incurred on hiring of IT specialists and training of staff.
Furthermore, when an organization has most of its activities taken over by computers
and other electronics, the amount of staff needed may be reduced. This is a possible
cost to the workers of such organizations and may lead to resistance to change, low
job security and morale, thereby causing a high level of unproductivity and
inefficiency. The inefficiency of these kinds of workers can cost the business its profit
and overall success. Adoption and implementation of IT may not only cost the
business and staff, but also the economy. If workers are laid off from their work
places due to being replaced by machines, this leaves them jobless and so increases
the number of unemployed people in the economy.

Computerise Accounting

In the present day, accountants no longer record every transaction of a company or

any corporate body with the help of pen and pencils using a ledger book. After the
birth of computers and the emergence of digitalization in most professional sectors in
India, accounting is also computerised.For the past few decades, computerised data
was used mainly in the field of science and technology. However, as the years go by,
computerised accounting systems are also becoming quite common.

Introduction to Computerised Accounting

Several accounting firms still perform book-keeping manually, while most firms
comprise financial transactions that can be a lot for a manual accounting
process. Moreover, the complicated financial transactions of a firm are quite difficult
to be recorded manually. That led to the introduction of the concept of computerised
accounting systems. Before you learn the meaning of computerised accounting, it is
important to know about the various factors to consider before using such a system.

Features of Computerized Accounting Systems

The characteristic features of computerised accounting systems are as follows –

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 38

Impact of Technology in Accounting

a) Components of computerised accounting systems are software programs which are

installed on a company machine, network server or accessed remotely with the help of
the Internet.
b) Such a system allows accounting professionals to set up income and expense
accounts such as purchases and sales accounts, salary distribution account, advertising
expenses account, etc.

c) The process of computerised accounting systems includes programs that can be

used to manage and control bank accounts, prepare company budgets, etc.

d) Depending upon the program and how advanced it is accountants can also construct
tax documents, handle company payroll, and manage project expenses properly.

e) Programs in this system can be customised as per user demands. This feature helps
every accounting professional to meet the requirements of their firm.
f) However, it is essential for the employees of a firm who are using a computerised
accounting system to get proper training so that they can use the system correctly and
execute the required programs accurately.

What are MIS and AIS?

MIS or Management Information System is a digitised database where all the

financial information of a company is organised and input in the system. With its
help, the program can execute daily reports on management operations of a
company.AIS or Accounting Information System is nothing but means of collection,
storage and execution of accounting data of a firm. This system is a popular choice for
a company before it needs to take an important decision for any purpose. Components
of AIS include data, users, i.e. people, software programs, accounting procedure,
information technology, and other internal variables.

Types of Computerised Accounting Software

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 39

Impact of Technology in Accounting

Multiple accounting software programs are used by professionals across the globe.
They can be classified as three types, which are –

A. Readymade Software

This kind of software is developed for all users in general and does not possess any
tweaks or elements that would help out a specific category of users substantially.
Readymade software programs are suitable for a firm where the overall volume of
accounting work is relatively low. Compared to other accounting software programs,
readymade software programs require minimum system requirements and are usually
cheap. Moreover, such programs have an easy and dynamic learning curve.

B. Customised Software

Customised accounting software programs are those readymade software programs

that have been altered to meet the specific requirements of any user. Such programs
are usually used in large and medium scale organisations. In the case of customised
accounting software programs, not only the installation expense but also the cost of
maintenance is relatively higher than other accounting programs. In most cases, to
acquire its services, users need to pay the vendor a certain amount as a customisation
fee. The advantages of using such an accounting program include enhanced security
and secrecy of data along with easier maintenance. Moreover, users are required to
undergo proper training before using this program for professional work.

c. Tailor-Made Software
As its name suggests, tailor-made accounting software programs are developed for
particular firms. Such programs form an integral part of MIS. These kinds of
programs are usually designed for large scale businesses only and require specialised
training before users are adept in working with this software to execute programs
accurately.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 40

Impact of Technology in Accounting

Advantages

Simplicity
Most business owners are not accountants or bookkeepers by trade and find it
challenging to do most accounting tasks. This is where accounting software programs
give a business owner advantages. A wide variety of accounting software programs
are consumer friendly. Business owners can shop around to find a program that is
easy to install, learn and use. Many programs provide prompts for the type of data
that should be entered in each section. Once the system is established with bank
accounts, debts and vendors, the business owner only needs to update information as
it comes in.
Reliability
Mostof the major software programs make using the program simple. The math is
accurate and reliable, so a business owner can accurately determine available funds
at any time.
Cost Effectiveness
Hiring an in-house bookkeeper or outsourcing the work to a bookkeeper or accounting
firm can be costly. The software program has an upfront cost and might require
contracting a bookkeeper to set up the accounts and coach the business owner on
using the program, but it quickly becomes cost-effective. The owner doesn't need to
pay for anything beyond the software purchase and setup. Most programs work with
operating systems for years and only occasionally require an inexpensive upgrade.
Ability to Collaborate
Many software programs allow business owners to set permissions that give an
outside bookkeeper or accountant access to the data. Business owners can sync
information with bank and credit accounts and import data with a click of a mouse.
This allows business owners to quickly reconcile accounts and import the correct
information that needs to be reviewed by key advisors.Business owners should review
the best options for the business. Consider backups either on the cloud or on separate
hard drives to maintain accurate records should problems arise.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 41

Impact of Technology in Accounting

Disadvantages

Potential Fraud
Dependence on computers sometimes leads to bigger problems. With more software
data being housed in the cloud, there are more opportunities for hackers to get your
business's financial data and use it. This puts assets at risk and creates potential
liability if hackers use employer tax identification to open credit cards and business
loans. There is also the risk of someone within the business accessing the information,
perhaps pilfering money from daily deposits and altering the data in the program.
Business owners must diligently protect financial information

Technical Issues
When dealing with computers, issues can arise. You may be completing year-end data
for your accountant and experience a power outage. Computers might acquire a virus
and fail. There is also the potential of users incorrectly performing software tasks that
they are not familiar with. If a user tries to do one thing but inadvertently does
something else, it might take some work to undo the error.

Incorrect Information
Bookkeeping records are only as good as the data put into the system. Business
owners that don't take the time to establish account categories properly may enter data
and generate reports that are not accurate.Business owners can do a lot to mitigate the
disadvantages and potential problems associated with computerized accounting with
proper planning and software integration. Taking the time to establish it correctly is
easier and cheaper than trying to backtrack because when a problem occurs.

E- Accounting
E-Accounting or Online Accounting is new development in field of accounting. It
means all your transactions will record in online server or data base , just like website
or blog or web blog . But for opening or making accounts will uses login id and
password. E-Accounting is just in the developing age and up to 2010 , it will surely
commercialize use . There are large number of companies who started E-Accounting .

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 42

Impact of Technology in Accounting

In E-Accounting the accountant and employer both feel satisfaction because, this is
cheep and without software defaults or failure. Your accounts saves in online server
or database , so there is no need to record manually . By this way we can save large
amount of money spending on manual books and different accounting software.Some
basic concepts, you should know in E-Accounting that it need learning because
without learning of E- Accounting, you never expert in E-Accounting. Almost all
companies uses same system of online accounting but some advance companies
makes own system of their online or E-Accounting. They need only those dedicated
person who know Internet and computer well, without this they can not appoint any
E-Accountant. E- Accounting Concept is adopted international level. It is developing
new standards which can be utilized for E-Accounting at international level.In other
words all major institution and organisation are in the favor of E-Accounting. In this
all major accounting relating to General ledger Book keeping and maintenance, Bank
reconciliation MIS Cash management, Account Payable and Receivables, Billing
Payroll, Budgeting Management of Records Asset, management Detailed financial
analysis, Collection management , Credit management , Generation of financial
reports Financial statements are totally online . Company's all accounting project can
be easily outsourced by E-Accounting system.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 43

Impact of Technology in Accounting

Universal acces

Good Collaboration

Quick Rectification
And Result

Fast Record With

E-Accounting

Advanced Technology
Features
of

Strict Control

Large Scale
Business Record
Adjust With Law &
Accounting Standards

Modification is
possible

Features of E-Accounting are as follows

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 44

Impact of Technology in Accounting

1. Universal Access

Today, I was in the post office for delivery my products' parcel which I sold through
my other eCommerce website. In the post office, a customer had called me for
knowing the prices of his interested product. I had 3G smart phone. I just accessed to
my database where I found the list of prices of his interested price. I called back and
told same information and succeeded to gain one more order during the time of
delivery. This practical example, I am explaining to you for your knowledge. Today
whatever you are using accounting software, all are connected net and server. You
can access and edit through your tablet and smart phone. So, it will give your
innovative experience. This is one of the good feature of e-accounting.

2. GoodCollaboration

If you are the team member of accounting department which have lots of
departments, you can collaborate each other with e-accounting. In this feature, you
can help each other for maintaining the accounts of company. For example, Mr. A is
in Delhi branch, he passed entry of sale in his Delhi branch. Mr. B is in Mumbai
branch, he passed the entry of purchase of his branch. All effects will be added in the
financial statement of company by these accounting team's collaboration and joint
efforts.

3. Quick Rectification and Result

If there is the mistake, there is more chance to rectify the mistake of accounting fastly
because large number of team members can access fastly. Many experts are just for
monitor, so, this will bring accurate and true financial results.

4. Fast Record with Advance Technology

Today, all accounting software companies want to become no. 1 in the market, but in
the market, there is big competition. So, these accounting software companies are

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 45

Impact of Technology in Accounting

doing best for innovation. So, everyday, you will see the new and updated hacks,
shortcuts for recording fast. So, enjoy this feature of e-accounting.

5. Strict Control

Now, it is impossible for hackers to hack accounting database because ethical hackers
are working in developing of advance accounting software who are making strict
security for accessing to accounting information.

6. Large Scale Business Record

Today is the time of doing hard work not laziness. Because business is growing fastly.
Today, I have lots of projects because my work has increased. So, thanks the
automation system of e-accounting which help to record our business during
increasing its scale.

7. Adjust with Law and Accounting Standards

Through installing new utilities, any accounting software can adjust with new
amendments of any law and accounting standards.

8. Modification is Possible

If you will shift from one business model to other business model, your accounting
software can also change its configuration.

1.7 Accounting Softwares In India & its benefits

Accounting displays the financial health of a business. For any small or big
business- ascertaining profits, and maintaining books of accounts supports in keeping
a tab on the financial position of the business. Financial accounting maneuvers
involve complex scenarios, huge operational budget, more customers, and
gigantic ledger

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 46

Impact of Technology in Accounting

records. As the business grows, it faces shortcomings in handling enormous books of

accounts and fiddle with adequate tools. Practicing good financial book keeping and
engaging right accounting software provides a straightforward, initiative and powerful
accounting solution.
Accounting Software is an answer to all business probes! accounting is an
integral part of a business organization and helps in learning the insights of
profitability and losses. A simple accounting software system enables the business to
keep records of expenditures and income and automate reporting tasks by eliminating
consolidated manual entries.
Software Development Companies have introduced simplified accounting
software that eases out the tiring task of manual ledger entries and eliminating human
errors. The accounting software has come as a reform in the business management
world. The software is used by all types of business indispensable of their size and
type. What’s more remarkable is that even the start-up companies are integrating
accounting software in the system for the basic functionalities the software has to
offer.

1.7.1 Tally ERP9

Tally.ERP 9 tops our list of accounting software as an end-to-end solution to GST

statutory regulations as current reformer changes get in the financial accounting
system of India. Tally is equipped with error detection capabilities that minimize any
chances of rejection in GST returns. Starting from creating invoices, creating ledgers,
printing cheques, stock aging analysis, cost estimates, profit analysis, auto bank
reconciliation, or any critical overviews; Tally is your business acquiescence partner.
As your business grows, Tally helps in generating instant reports and makes quick
decisions. Tally is a simplified yet unique solution that allows the business to handle
accounting and manufacturing details by implementing minimum resources.

Benefits –
Manage your Accounts easily :

Tally streamlines with unique ways to offer simplified solutions to complex parts of
the business. View reports and profit analysis to make quick decisions for the
R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 47
Impact of Technology in Accounting
business.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 48

Impact of Technology in Accounting

Get bird’s eye view on each ledger to manage capital control and manage
complexities of accounting.
Your One-Stop Gst Ready Solution :
GST is the newest statutory changes in the Indian tax system. It has been further
divided into 4 different slabs that require thorough business compliance. Tally.ERP 9
enables filing of easy and error-free GST returns. Now it is possible to minimize
chances of GST rejection with Tally as your compliance partner.
Banking made easy for you :
It is possible to generate auto bank reconciliation to save time and manual errors.
Tally.ERP 9 ensures neater invoice presentation and keeps a track of all the post-dated
cheques and bank transactions. Not only banking, but users can also maintain cash
receipts and payments through easy tracking facility.
Take decision on the go :
A final detail report for stock aging analysis, profit analysis, cash, and bank
transaction helps in making business decisions. Tally.ERP9 helps in analyzing
outstanding reports and cost estimates and year ending profits for better financial
growth of the business. Users can use advanced filters, alteration, and comparison
techniques in order to get the right detail.

1.7.2 Quickbooks India

New age businesses look forward to embracing accounting software that provides
seamless, comprehensive data on one single tool. QuickBooks India is the
comprehensive modern accounting management tool which offers you the best for
your business. The software allows enterprises to track sales, create and send invoices,
and derive a database from the cloud-based portal. QuickBooks is for novice users
and does not require any expertise in financial accounts handling. The software is
equipped with powerful invoicing features, payment reminders, sales, and inventory
tracking, auto banking resolution, and easy navigation interface. QuickBooks
simplifies tasks and provides a 360-degree view of the business from anywhere.

Benefits –

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 49

Impact of Technology in Accounting

Access your account, manage your business, and stay organized anytime,
anywhere on your computer, mobile or tablet :
Irrespective of your location or what device you use, QuickBooks allows access to
your accounts and helps in managing the business. QuickBooks is the right
accounting software in terms of its accessibility and features that are necessary for
every growing business.
Create custom, professional invoices, sales receipts and estimates that you
can send in minutes :
QuickBooks is a perfect accounting solution that enables customized features that
suits different business segments. The software features a powerful invoice tracking
system, sales order management, and cost management system to make your team
more efficient and result worthy.
With the QuickBooks Online banking integration feature, your
statements and transactions will automatically update :
Connect your bank accounts with QuickBooks to categorize transaction and
derive auto bank reconciliation reports. Sync the transaction for an easy snap view of
featured statements of transactions. Get a real-time view of your cash receivable and
payables with online banking integration.

1.7.3 Zoho books

Zoho Books is a popular online accounting software in India, which acts as an

integrated platform for end-to-end financial solution. Zoho Books is GST compliant,
automates business workflow, and manages financial accounting and help in
managing departments collectively from one single source. According to finance
expert, Zoho Books is one of the most preferred accounting solutions for growing
business. Right from maintaining sales orders and invoicing, Zoho Books mundane
GST invoices, bookkeeping, huge ledgers, and various accounting tasks. Zoho Books
is feature- packed to manage cash receivables, payables, banking, inventory,
timesheets, and business contacts and generate reports. Zoho Books is available at
affordable pricing to make you GST filing experience easier and error free!
Benefits –

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 50

Impact of Technology in Accounting

End-to-end accounting :
Zoho Books is an efficient end to end accounting solution for error-free invoicing.
Handle sales order, invoices and negotiate mundane accounting tasks with this
software. Management can now completely focus on business development without
having anything to worry about account management.

GST compliance :
It is imperative to know your tax liability, file returns, and make your business GST
compliance. Zoho Books is one of the top 10 accounting software in India, which
eliminates your tax liability and aids in fling error-free returns. Zoho Books is your
GST compliance partner with all the necessary tools to overcome cancellations fear of
tax returns.

Integrated platform :
Zoho Books is enriched with more than 40 apps that overpower business accounting
woos. As your business grows, Zoho Books can be integrated with additional apps
that help in tracking business irrespective of location. It is possible to keep a track on
business accounting whereabouts from anywhere in the world.

Create e-way bills for consignment :

Zoho Books enables auto-detection of consignments and transactions that require e-
way bills. Capture e-way bills in your invoices and transport copies to the designated
customers and keep a record in different departments through Zoho Books easy e-way
billing system.

1.7.4 Marg ERP 9+

MargERP 9+ is a GST enabled inventory and accounting software in India that makes
GST billing and filing easy. Generate batch wise invoice, get detailed information on
a business transaction, avail auto bank reconciliation, encode and centralize barcode,
and push GST transaction on the portal. MargERP 9+ helps in selecting the right GST
slab

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 51

Impact of Technology in Accounting

and segregate transactions accordingly. The software directs detailed and automates
calculations of SGST, CGST, and IGST. MargERP9+ is a trade specialized solution
that is highly affordable in price and customizable in features. With more than 2500
software configuration and 500 tutorial videos, the software is easy to implement and
lets you build functionality to business support.

Benefits –
GST Compliant :
Effective accounting software with GST compliant features helps in generating
effective financial reports, accomplish tax calculations, and help to file GST returns
easily. Business can generate GST invoices and reports for better tax reporting.

Easy Implementation :
Downloading this powerful software proclaims instant billing and managing
inventory records. The local centers help in implementing the software easily. There
is multiple customer care executive that offers full-time support with updated tutorials
and manuals.

Customizable and collaborative :

Automating business workflow as per company’s requirement is an essential layer of
functionality. MargErp9+ customizes invoices as per business demands and supports
the most unique business models.

The customer drove and business booster :

Boosting business can be rewarding and gives your business the advantage of
competing in the market. With impressive features and flexible approach,
MargERP9+ allows timely advancements and innovations. Business can look forward
to improving business performance and maximizing benefits with the self-
customization platform.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 52

Impact of Technology in Accounting

1.7.5 Vyapar

Vyapar tops the list of accounting software for small Indian businesses. The
accounting software is a free platform that allows maintaining invoice, getting
inventory records, managing books of accounts, and tracking daily business activities
while focusing on business growth rate. The software eliminates paperwork and helps
business management to utilize productive time on business development. Since most
of the small sector business needs a digital upgrade, Vyapar acts as an effective
solution. Vyapar is GST compliant and allows error-free tax returns while eliminating
errors occurred with manual calculations. Vyapar takes charge to control individual
units of the business, creates customizable invoices, and automates payment
reminders.

Benefits –
Become GST compatible :
GST has become an essential part of the business tax system that requires
computerized calculation. Small sector business becomes GST compatible with
Vyapar as it offers a digitalized platform for maintaining different tax slabs. Business
can now easily file returns and without any hassle of manual errors.

Manage all parties in one single place and market business much easily
Centralizing all business records and collaborating with suppliers, vendors are two
essential part of a successful business. Vyapar has brought in digital reform in business
by allowing the business to manage all the parties, generate invoices, and stay ahead in
the market.
Set up “Auto Backup” and secure business accounting data against
accidental data loss and Do business accounting offline without internet :
Securing business data is essential and the most primary objective of a business.
Small businesses deal with safety issues due to lack of resources. Vyapar offers auto
backup facilities that prevent loss of data loss happening due to loss of papers. Saving
every record on a digital platform helps in deriving them as and when
required.Vyapar supports offline accounting features, which enables the business
to carry out an accounting process without connecting over the internet. One can
complete transaction entry and then connect online to sync the files with auto backup.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 53

Impact of Technology in Accounting

Track business performance and control individual units :

Vyapar is an inventory and accounting management software that enables to keep a
record of the individual unit by their expiry dates, batch numbers, and other features
that helps in picking the right on during sales. Business managers can also keep track
of team performance by analyzing sales invoices and cash invoices. This helps in
making decisions for further developments.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 54

Impact of Technology in Accounting

CHAPTER 2

RESEARCH
METHODOLOGY

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 55

Impact of Technology in Accounting

2.1 OBJECTIVES

1. To examine need and importance of information and communication

technology in Accounting
2. To analyzechanges taken place in Indian accountancy system
3. To study impact of information and communication technology on accounting
4. To identify challenges in information technology in accounting

2.2 Research Methodology & Source of Data

Research is based mainly on data colleted through questionaires and discussions with
people. Primary method of data collection is used for research work .Responces to
quetionaire are collected through google forms.
2.2.1 Area of study
Study is confined to understand scope of influence of technology on accounting and
accounting practices in Ratnagiri
2.2.2 Sampling plan
Sampling plan is used for the study is convenient and quota sampling
2.2.3 Tools and techniques
The standard tools and techniques are used for analysis of data i.e., tabular analysis
and graphical representation based on proportion and percentage

2.3 Hypothesis

1 ) H1 :ICT is useful in accounting

H0 :ICT is not useful in
accounting
2 ) H1 :ICT have changed the working of Indian accounting system
H0 :ICT have not changed the working of Indian accounting
system

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 56

Impact of Technology in Accounting

2.4 Scope of Study

Scope for improvement is always on. The study is mainly limited to

availability of information And applicability of rules and regulations . As per the topic
of project work of research has wide scope. Research is only considered accounting
practices in Ratnagiri District. Result and analysis are entirely based on data collected
through questionnaires and discussion made with people.

2.5 Limitations of study

Limitations are invetible in nature as any work goes through critical

examination and evaluation and has lot of scope in analysis. As technology is
changing at very fast speed further examination is required to evaluate which
technology is best suited to tackle all needs.

2.6 Significance of the Study :

The effort is made in order to understand , with the use of ICT , how
accounting procedures have been changed over period. Study is useful to understand
actual contribution of ICT and benefits derived from it. Study will help to know
accounting in computerize environment and new risks associated with it. Study will
analyse how transparency and control over multiple accounting transaction through
use of ICT. Study consists of advantages and benefits of ICT in Accounting. Also
consider challenges of Accounting in ICT.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 57

Impact of Technology in Accounting

CHAPTER 3

LITERATURE REVIEW

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 58

Impact of Technology in Accounting

Literature Review:

Accounting is regarded as one of the significant and most important aspect of the
contemporary and Global Business organisations. With the various financial procedures
and applications, there can be collection of constructive data for effective decision
making in the organisation. Financial accounting is regarded as economic
management aspects which supports in summarizing, monitoring as well as recording
of the various financial transactions of the companies (Allen, et al., 2012). The
primary aim of the financial accounting is to provide particular and specific
information to the various stakeholders which comprises of investors, public, creditors
and the government authorities. The aim behind providing the information is that with
the help of this information, stakeholders can effectively analyze the financial
condition, development, growth and profitability of the companies.
According to the views of Burns and Needles (2014),the concept of financial
accounting was first developed in early 1930s. With the deep insight of almost more
than 80 years, it has been evaluated that with the growth and development of financial
accounting, there are a number of challenges which has also been raised in the past
decades. With a mutual and shared aspect of accounting as well as globalization, there
has been taken place reporting to the external parties, disclosures, reforms on
recognitions and measurement of the performances as the various important financial
principles which helps in regulating the recognition and measurement activities in the
global accounting (Burns and Needles, 2014)The aspect of financial accounting is
directly associated with its several challenges that are faced by the organisational
managers and the companies because of enhanced globalization.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 59

Impact of Technology in Accounting

According to the opinion and study of Weygandt, Kimmel and Kieso (2015), there
can be stated that with the growth and development of accounting, there are
several challenges which has also been encountered by the accountants and
organisational managers in the overseas business operations (Weygandt, Kimmel and
Kieso, 2015). The business organisations are putting high emphasis upon the various
challenges and issues which takes place in the global accounting practices and are
impacting the performance of the businesses (Hodges, 2012).
In the wide and diverse literature, Warren, Reeve and Duchac (2013) have
emphasized upon a number of issues and challenges associated with the financial
accounting in the overseas and global business organisations. The primary and the
first challenge which has been stated by the various researchers is that the challenge
related with the economic environment (Warren, Reeve and Duchac, 2013).
In current scenario, there are several countries where the traditional accounting is still
regarded as the main and primary stream which is followed while performing the
accounting and business transactions and though it has a relation with the economic
environment of the country. Because of the increased technological Innovation and
development, there has been attained a number of improvements in the competence
and skill of the managers to effectively manage the various changes and amendments
which have taken place in the business operations because of these technological
advancements. Because of this, there is a direct impact which has been let down upon
the traditional accounting. In the Global business operations, there is high emphasis
upon digital business operations, e-commerce and the technological innovation which
has developed a significant need for the improved accounting models which are new
and innovative. Due to this, an application of e-accounting which is related to the
internet environment in the overseas organisation has been developed. There are both
internet inside business and internet outside business (Gordon, et al., 2013).
In the internet inside business there is flow of information as well as communication
between the Global organisations, trading partners as well as the customers. On the
other hand in the intranet, there is communication and flow of information among the
several organisational departments. All these impact the accounting practices in a
negative way comprising recognition, measurement and reporting of the accounting
activities. The uses of advanced technologies and continuous innovation have left no
room for the organisational employees to handle and manage the accounting functions
effectively. Due to this reason, the employees do not possess adequate skills and

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 60

Impact of Technology in Accounting

competence to manage the new and advanced accounting techniques (Schaltegger and
Burritt, 2010).
Another key challenge which has been faced by the organisational managers in the
global business economy is the multi-jurisdictional reporting. The Global organisation
used to have a number of branches and subsidiaries and there is a need to have
adequate reporting and accounting of the business transactions of all the subsidiaries
(Cavusgil, Knight, Riesenberger, Rammal and Rose, 2014). It is one of the biggest
issues for the various accounting personnel to prepare adequate and correct financial
statement of every subsidiary established in different nations abided by the various
accounting principles and legal regulations of those Nations. There is a change in the
accounting standards from country to country (Salvato and Moores, 2010).
The companies are also necessitating reporting the complete group of organisations
on a consolidated basis according to the accounting standards of the country where
the parent company is established (Tayeh, Al-Jarrah and Tarhini, 2015). It is one of
the most exhausting as well as complicated process which not only increases the time
of completion of the accounting function but also decreases the productivity. A
number of countries have agreed upon working according to the IASB (International
Accounting Standards Board) accounting standards for achieving higher level of
uniformity in the accounting transactions across the borders (Kimmel, Weygandt and
Kieso, 2010).
Several Nations have given their consent to implement the standards drawn by IASB
but the issue takes place when these countries have their business functions in the
other nations where such standards are not followed and separate accounting
standards principles and practices are implemented (Zeff, 2012).
The next major challenge in the Global accounting is the non-financial measures. The
companies analyze the future success or growth with the help of a number of factors
but in most of the business organisation, there remain factors which are non-financial
in nature (Collier, 2015).
The factors such as customer satisfaction, goodwill, brand recognition, human
resource practices, employment policies and various other factors are the one which
are subjective in nature and therefore there cannot be interpreted the results based
upon these factors (Owolabi and Iyoha, 2012).
There can be change in these factors depending upon the users and therefore it
becomes challenging for the accounting personal to effectively set the adequate
measurement
R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 61
Impact of Technology in Accounting

standards. Thus, it is one of the major challenge or issue which occurs in the financial
accounting in globalized economy (Kieso, Weygandt and Warfield, 2010).
Another significant challenge in the Global accounting which has been stated by the
authors is in relation with the financial instruments. With the higher complexity in the
trading aspect there are increased challenges in the accounting as well (Otley, 2016).
A number of assets such as the repurchase agreements, options, forward contracts, etc.
do not have any kind of physical existence. Therefore the financial agreements based
upon these assets comprise of higher complexity and thus it develops difficulty and
challenges in their effect evaluation. It is easy for the Global business organisation to
manipulate the values of the financial instruments which ultimately result in business
corporate frauds (Narayanaswamy, 2017).
In such type of frauds the business organisation takes use of over valuation of the
financial instruments to show false profit and revenue. Therefore such kind of
overvaluation activity is one of the biggest issue or challenge in the global accounting.
The accounting standards are putting high Emphasis to overcome and have reduction
in the complexity of the financial instruments so that such Corporation frauds can be
reduced (Horngren, et al., 2012).For overcoming the various challenges of global
accounting there are a number of practices and policies which have been implemented
by the Global Business organisations. The diversified and wide amount of literature
has presented a number of ways for sustaining and managing the accounting
challenges.
According to Hopwood, Unerman and Fries (2010), one of the most primary and
effective way of overcoming the accounting issues is implementing and taking use of
the Green accounting practice. The practice of green accounting is regarded as an
environment-caring business which helps in reducing and eliminating the negative
impact imposed on the environment due to accounting practices (Hopwood, Unerman
and Fries, 2010).
There are various developing countries which are taking use of traditional accounting
practices. These nations are required to take use of the green accounting practices and
innovative accounting functions. There must also be providing adequate training to
the organisational employees so that they can adequately work on the Advanced
Technological accounting functions and e-accounting practices.Another major
practice which can support in sustaining the accounting challenges is effective
implementation and use of the accounting harmonization (Hancock, et al., 2010).

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 62

Impact of Technology in Accounting

The literature and vast study shows that there can be reduction in the issues related to
financial accounting raised due to high level of complexity (Schaltegger and Burritt,
2010).
The multi-jurisdictional accounting results in higher complexity and therefore to limit
the differences of the accounting standards as well as accounting practices there can
be increased the organisational performance by involving in the Global business
operations and trades (Needles and Powers, 2010).
In the globalized economy there is a trend of international harmonization which has
been used in the global accounting. to overcome the issue of non-financial measures
in the financial accounting, the business organisations must use and implement the
accounting practices such as by effectively analyzing the satisfaction level of the
customers, the productivity scores of the employees, internal and external audit and
the scores of the task completion (Northcott and Ma'amoraTaulapapa, 2012).

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 63

Impact of Technology in Accounting

CHAPTER 4

DATA ANALYSIS AND

PRESENTATION

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 64

Impact of Technology in Accounting

Data analysis and Interpretation :

Data analysis

Analysis has been done with reference to detailed questionnaire and personal
interview of respondents of different categaries such as Age / Designation / years of
experience and social criteria.

1 .Age

Years Frequency Percentage

18 - 25 41 68
25 - 40 15 25
40 - 60 04 07
60 and Above 00 00
Total 60 100

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 65

Impact of Technology in Accounting

AGE
0%

7%
25%
18-25
25-40
68% 40-60
60 ABOVE

The basic information regarding the age group of data shows that most of the
population
Is of age group between 18 to 25 years viz. About 68 % of population is of age 18 to
25 years.
Remaining 25 % population is of 25 to 40 years and only 7 % of respondents are of
age group of 40 to 60 years . There is no one in respondents who is of age group of 60
& above.

2 .GENDER

Gender Frequency Percentage

Male 31 48
Female 29 52
Total 60 100

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 66

Impact of Technology in Accounting

GENDER

48%
52%
MALE
FEMALE

Male respondents are more in comparison to female respondents. About 52 %

of the respondents are male and remaining 48% respondents are female.

3. DESIGNATION IN THE FIRM WHERE RESPONDENT WORKS

Workplace Frequency Percentage

Chartered Accountant 05 08
Tax And Financial Advisor 05 08
Employee 21 35
Article Assistant 10 17
Trainee 04 07
Other 15 25
Total 60 100

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 67

Impact of Technology in Accounting

DESIGNATION IN THE FIRM

8%
25% 8%

CHARTERED ACCOUNTATNT
7%
TAX & FINANCIAL ADVISOR
35%
17% EMPLOYEE
ARTICLE ASSISTANT
TRAINEE
OTHER

From the above table or diagram it can be seen that the most of the 35% of population
are from Employee category. 17% of population are doing work as Article Assistant.
7% population are working as trainee. 8% of overall population are working under
Chartered Accountant as well as Financial Advisor. 25% of population are working
under others category.

4. Year of experience

Years Frequency Percentage

0-5 47 78
5-10 07 12
10-15 03 05
15 And Above 03 05
Total 60 100

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 68

Impact of Technology in Accounting

Years of Experience

5% 5%

12%

0 to 5
5 to 10
10 to 15
78% 15 & Above

As per shown in the table and diagram, most of the respondents having experience of
0 to 5 years that of 78% .12% of population having 5 to 10 years experience. 5% of
population having experience of 10 to 15 years and 15 & years above.

5. Do you think that use of Information Technology in accounting eased

your work?
Particulars Ferquency Percentage
Yes 50 84
No 1 01
To Some Extent 9 15
Total 60 100

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 69

Impact of Technology in Accounting

Use of ICT in accounting eased work

2% 15%

Yes
No
To Some Extent
83%

Most of the population that of 83% are thinking as use of ICT in accounting eased
their workbut 15%of there are thinking as ict in Accounting eased their work up to
some extent. Only 2% population thinks that use of ict does not eased their work.

6. Which method is preffered by your clients for record keeping ?

Particulars Ferquency Percentage

Manual 1 2
Computerise 26 43
Both 33 55
Total 60 100

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 70

Impact of Technology in Accounting

METHOD FOR BOOK KEEPING

2%

43%

55% MANUAL
COMPUTERISE
BOTH

From all of the population 55% of population having their clients recording their
books as manual and computerize method of book keeping.43% of population using
computerise method of recording. Only 2% of respondents clients are recording their
books manualy.

7. If accounts are maintained manually then it affects

Particulars Strongly Agree Neutral Disagree Strongly Total

Agree Disagree
Cost Effect 14 34 09 03 00 60
No need of 11 15 14 14 06 60
Computer
Knowledge
Security 13 25 12 07 03 60
Heavy 29 27 03 00 01 60
Documentation
Time Consuming 29 22 06 03 00 60
Reliability 11 25 21 03 00 60

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 71

Impact of Technology in Accounting

Cost Effect

35
30
25
20
15 Cost Effect

10
5
0
Strongly Agree Neutral Disagree Strongly
Agree Disagree

As per shown in the diagram most of the respondents are thinking that manual
accounting is costly

NO NEED OF COMPUTER KNOWLEDGE

16
14
12
10
Axis Title

8
6
4
2
0
STRONGLY AGREAEGREE NEUTRAL DISAGSRTEREONGLY DISAGREE
Axis Title

NO NEED OF COMPUTER KNOWLEDGE

From the data 8.4% people are Neutral as well as disagree with the statement of no
need of computer knowledge for manual. 9% population agrees with the statement.
Also 6.6% population are strongly agree where as 3.6% population are strongly
disagree with the statement.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 72

Impact of Technology in Accounting

SECURITY

25

20

15

10

0
STRONGLY AGREE NEUTRAL DISAGREE STRONGLY
AGREE DISAGREE

SECURITY

As per data and above diagram most of the 41.66%population agrees and 21.66% &
20%population thinking strongly agree and neutral respectively for the security of
data in manual accounting system.

HEAVY DOCUMENTATION

30

25

20

15

10

0
STRONGLY AGREE NEUTRAL DISAGREE STRONGLY
AGREE DISAGREE

HEAVY DOCUMENTATION

Most of the like 48.33%and 43% saying strongly agree and agree with the statement
of heavy documentation is necessary in manual accounting.5% population is neutral
& only 1.6% population strongly disagree with statement.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 73

Impact of Technology in Accounting

TIME CONSUMING

30

25

20

15

10

0
STRONGLY AGREE NEUTRAL DISAGREE STRONGLY
AGREE DISAGREE

TIME CONSUMING

As per data and analysis 48.33% and 36.66% population are strongly agree and agree
with the statement that manual accounting is time consuming.10%population is
neutral & that of 5% is disagree with the statement.

RELIABILITY

25

20

15

10

0
STRONGLY AGREE NEUTRAL DISAGREE STRONGLY
AGREE DISAGREE

RELIABILITY

The most 41.66%population agree and 18.33% population strongly agree with the
statement that is data derived from manual system is reliable.35%population is neutral
as their pole. Only 5%population disagree with the statement.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 74

Impact of Technology in Accounting

8. If accounts are maintain using software then it affects

Particulars Strongly Agree Neutral Disagree Strongly Total

Agree Disagree
Easy to Use 26 30 04 00 00 60
Time saving 33 23 04 00 00 60
Paperless 28 26 05 00 01 60
Security 24 21 14 01 00 60
Cost effect 27 23 10 00 00 60
Reliability 22 23 13 02 00 60

Easy to use

30

25

20

15

10

0
Strongly Agree Neutral Disagree Strongly
Agree Disagree

Easy to use

As per data 43.33% & 50% of total population is strongly agree and agree with the
statement that is softwares of accounting are easy to use. 6.66% population is
neutral.so we can say that handling of softwares

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 75

Impact of Technology in Accounting

Time Saving

35

30

25

20
Time Saving
15

10

0
Strongly Agree Neutral Disagree Strongly
Agree Disagree

As per data 55% and 38.33% of population is saying strongly agree and agree
respectively with statement that is accounting using software is time saving.6.66%
population is neutral in nature.

Paperless

30

25

20

15 Paperless

10

0
Strongly Agree Neutral Disagree Strongly
Agree Disagree

As per the data most of the population which is 46.66% & 43.33% is strongly agree
and agree with statement that accounting using software is paperless.8.33%
population is neutral.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 76

Impact of Technology in Accounting

Security

25

20

15

Security
10

0
Strongly Agree Neutral Disagree Strongly
Agree disagree

As we consider security most of the population that is 40% is strongly agree and 35%
of total is agree with it.The remaining 23.33% of population is neutral in nature and
only 1.66% of all population thinks accounting using software is not as secure as
manual.

Cost Effect
30

25

20

15
Cost Effect
10

0
Strongly Agree Neutral Disagree Strongly
Agree Disagree

As considering total population most of the that is 45% is strongly agree and 38.33%
population agrees with statement that accunting using software is costly.16.66% of all
are neutral.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 77

Impact of Technology in Accounting

Reliability
25

20

15

Reliability
10

0
Strongly Agree Neutral Disagree Strongly
Aagree Disagree

As per data and diagram 36.66% and 38.33% of total population is strongly agree and
agree with the statement which is data derived from accounting made using software
is reliable. 21.66% of total population is being neutral. But 3.33% population thinks
that the data which comes from saoftware is not as much as reliable as compared to
manual.

9. which software do you use for Accounting ?

Accounting Softwares Frequency Percentage

Tally 53 88
Busy 00 00
Quickbooks 00 00
Marg 00 00
Zoho Books 00 00
Others 07 12
Total 60 100

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 78

Impact of Technology in Accounting

Accounting Software

0% 0% 0%
12%
0% Tally

Busy

Quickbooks

Marg

88% Zoho Books

Others

Most of the population which is 88% using tally ERP 9 Accounting Software for there
accounting. 12% of total population using other types of Accounting Softwares.

10. Do you think That Technological Reforms in accounting can reduce

frauds or black money transaction ?

Reduce frauds or black Frequency Percentage

money
Yes 25 41
No 04 07
To some extent 31 52
Total 60 100

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 79

Impact of Technology in Accounting

ICT Helps To Reduce frauds and Black

money

41%

52% Yes
No
To some Extent
7%

As per the data shown in table, 41% of total population thinks that technological
reforms in accounting can reduce frauds or black money transactions. But most of the
population which is 52% thinking that technological reforms in accounting can reduce
frauds or black money transactions. up to some extent. 7% of population thinks that
technological reforms in accounting does not reduce frauds or black money
transactions

11. Do you faced problems while using software in accounting ?

Problems using Software Frequency Percentage

Yes 7 12
No 27 45
To Some extent 26 43
Total 60 100

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 80

Impact of Technology in Accounting

Problems While Using Software

12%

43%

Yes
No
45%
To some extent

As per the data shown in table, 12% of total population thinks that while using
software problems are occurred. But 45% population does not face any problem while
using software.43% of population faced problems while using software in accounting
up to some extent.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 81

Impact of Technology in Accounting

CHAPTER 5

CONCLUSIONS

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 82

Impact of Technology in Accounting

Findings

1. As ICT is emerging in all the sectors Accountancy also the field which is
mostly based on ICT nowadays.
2. Changes in Accounting system new policy ,new technologies are adopted in
Accounting.
3. As we study the advantages & merits of Information and communication
technology some challenges of ICT also considered.
4. Accounting is updating day by day with this a new transparency environment
has risen This will reduce the black money transactions to some extent.

Conclusion

1 .Technology plays a vital role in accounting . In todays changed scenario everything

is done with technology. In accounting also journal entries , balance sheet made using
software. Information & communication technology in accounting eased their work.
So information and communication technology is useful in accounting.
2 .Information and communication technology had drastic change in Indian
accounting system.accounting has become more accurate using software. Softwares
are easy to use
, reliable and becoming paperless. Even though we using softwares for accounting
most of the people are using both techniques of accounting manual and
computerise.so Information and communication technology have changed the
working of Indian accounting system.

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 83

Impact of Technology in Accounting

CHAPTER VI

BIBLIOGRAPHY

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 84

Impact of Technology in Accounting

Bibliography:

Books

1. Advanced Financial Accounting AuthorL.N.Chopade , Dr.Kinnarry Thakkar

, Dhiren Kanabar ,Dr.Shraddha Shukla, Dr. Jayant Apte , Dr. Ashok D. Adhav ,
Dr.Arvind Ubhale , Santosh Ghag ( SHETH PUBLICATION)

Links:

1. www.ictaccounting.com
2. https://en.m.wikipedia.org/wiki/History_of_accounting#:~:text=In%20India%
20Chanakya%20wrote%20a,accounts%20for%20a%20Sovereign%20State.&t
ext=Early%20modern%20accounting%20had%20similarities%20to%20today'
s%20forensic%20accounting

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 85

 Impact of Technology in Accounting

Dear Sir/ Madam,

I would be grateful to you if you could answer the following questions honestly. It will
assist me in collecting relevant data in my area of research. All the information
collected will be kept confidential and strictly for research purpose.

Mr. Suyog Sandeep Ranade

GogateJogalekar College, Ratnagiri

Questionnaire

1. Your name
2. Age
a 18 to 25
b 25 to 40
c 40 to 60
d 60& above
3. Gender
a male
b female
c prefer not to say
4. Designation in the firm where respondent works
a Chartered Accountant
b Tax and Financial Advisor
c Employee
d Article Assistant
e Trainee
f other
5. Years Of Experience
a 0 to 5

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 86

Impact of Technology in Accounting

b 5 to 10
c 10 to 15
d More than 15
6. Do you think that use of information technology in accounting eased your
work ?
a Yes
b No
c To some extent
7. Which method is preffered by your clients for record keeping ?
a Manual
b computerize
c Both
8. If Accounts are maintain manualy then it affects…

Particulars Agree Strongly Neutral Disagree Strongly

agree Disagree
Cost Effect
No need of computer
knowledge
Security
Heavy
Documentation
Time Consuming
Reliability

9. If accounts are maintain using softwarethen it affects….

Particulars Agree Strongly Neutral Disagree Strongly

agree Disagree
Easy to use
Time saving
Paperless
Security

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 87

Impact of Technology in Accounting

Cost Effect
Reliability

10. Which software do you use for Accounting ?

a Tally
b Busy
c Quickbooks
d Marg
e Zoho books
f Others
11. Do you think that technological reforms in accounting can reduce frauds
or black money transactions ?
a Yes
b No
c to some extent
12. Do you faced problems while using software in accounting ?
a Yes
b No
c To some extent

R.E.SOCIETY”S GOGATE JOGALEKAR COLLEG RATNAGIRI 88