1.1 Introduction
In today’s world
academic education is not adequate to enable a student to compete with
confidence and reach his/her goal without having depth knowledge about some
particular fields. In order to have details idea and depth knowledge about any
field or topic, we, the students of Department of Accounting and Information
Systems, especially in the BBA program, University of Dhaka, have to undertake 6
weeks internship or thesis program.
As a part of my BBA
program, the six weeks thesis program gave me the opportunity to have details knowledge
about the challenges of traditional accounting because of technology based
accounting. The assignment was how the traditional accounting is differing from
the Computer based accounting.
To face much more
complex and challenging business world in the challenging business areas, depth
knowledge about any particular area is very much necessary. The detail
knowledge can be acquired by analyzing the area by making a thesis. To gather
this knowledge I was assigned by the topic of traditional accounting and its
challenges in the present world.
This study gave me an
opportunity to make me able to understand the challenges of the traditional
accounting in the present world as well as the challenges faced by the accountants
in term of securing their accounting jobs. I have been able to identify main
loopholes of the traditional accounting. I have also identified the reasons of getting
popularity of Computer based accounting systems.
1.2 Background of the Study
The world is changing rapidly. Traditional manual system is
going to be converted into technology based modern system totally. Now-a-days,
it is not possible to think about the accounting without technology.
Traditional accounting system refers to the system of recording the accounting
transactions according to the method suggested by the father of accounting Luca
De Pacioli. The traditional accounting information system is based upon what is
typically called the accounting cycle and is based on the accounting equation.
Although the ideas documented by Pacioli have been modified over the years, the
essence to his original proposal remains intact. The main weakness of the traditional
accounting is a lack of integration across functional areas of the
organization. Many organizations have separate systems for each functional
area. This duplicates the number of journal entries and the amount of data
stored within the systems.
Computerized based Accounting System refers to the
integration of different component systems to produce computerized books of
accounts and computer-generated accounting records and documents. Certainly
Pacioli’s original ideas were nothing short of brilliant in terms of proposing
a method for recording, maintain, and reporting economic data with a fairly
primitive information technology. However, today’s world and the profession’s
desire to move forward allow AIS designers to rethink the basic architecture of
the AIS. Moreover, today’s technology makes rethinking AIS possible. Although there were stewards, auditors,
and bookkeepers in ancient times, the professional accountant is a 19th-century
development. Unlike those precursors, modern accountants usually do not service
a single client or employer; instead they offer their expertise, for a fee, to
several individuals and businesses. The profession was first recognized in
Great Britain in 1854, when the Society of Accountants in Edinburgh was given a
royal charter. Similar societies were later established in Glasgow, Aberdeen,
and London. In the United States the first such professional society was the
American Association of Public Accountants, chartered by the state of New York
in 1887. The auditors and accountants are facing some challenges in the present
world. The accounting jobs also face the challenges because, it is not only for
the accountants now, and anyone can be able to get the accounting related job
after being skilled in accounting software application.................................................................................................................................................
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Thank you
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