ICT Accounting is the branch of Accounting that integrates traditional accounting principles with software and information systems through the use of computer technologies.
As widely known, ICT is an acronym for Information Communication Technology. ICT is concerned with the storage, retrieval, manipulation, transmission or receipt of digital data. It involves the use of digital technology to help individuals, businesses and organization use information.
ICT has been a major factor of the efficient accounting system and great organizational performance recently. ICT has been used to augment the reliability of accounting information and organizational performance.
In recent times, the usage of computers and other advanced technology such as ICT has increasingly been adopted in most practices including accounting. Prior to this, accountants were vigorously involved in all accounting activities. Records had to be kept by humans, preparation of financial statements such as the statement of financial position and statement of comprehensive income was done manually by the accountant.
The impact of ICT on Accounting has given rise to a computerized system of accounting. This system makes use of computers and software programs like Quickbooks, Sage Peachtree, etc. for all accounting process.
As said earlier Computer-based accounting involves the use of accounting software. These accounting softwares assists bookkeepers and accountants in the recording and reporting of financial reports.
Accounting softwares have different functionalities. This includes completing basic day-to-day tasks like writing and informing customers about their due payment, payroll management like calculating employees’ salaries, cutting deductions, depositing the salary directly into staff members’ bank, Time and expense management and so on.
The use of Accounting software brings a lot of benefit to the organization as it provides simple and fast data entry processes, helps in reducing manual errors due to automation of processes, improves productivity by reduction of approval processes, reduces operational costs through the elimination of outsourcing of bookkeeping and saves staff costs on manual accounting etc.
Some popular accounting software includes Quickbooks, Sage 50, Freshbooks, Xero, Zoho Books and Tally ERP. Also, Microsoft Excel could function as an accounting package.
Artificial intelligence is another technology that is changing the way thing are done in the accounting industry. As it can eliminate some of the mundane tasks that accountants do. For example, it can digest and analyze large volumes of data faster than humans, interpret contracts or deeds, extract key terms and analyze them, and occasionally solve problems that couldn’t be solved before.
As the accounting profession evolves so do the opportunities for accountants to find exciting and fulfilling careers that embrace the changing technology. The skills required are shifting so graduates and students need to have the required computer skills and prepare to adapt to change.