TOPIC 6 Flashcards
(13 cards)
What are the main advantages of using technology in accounting?
Real-time data processing, minimal errors (if inputs are accurate), automatic generation of reports and documents.
What are the key disadvantages of technology in accounting?
Vulnerabilities to power failures, system crashes, and cyber attacks.
How does technology assist in the accounting process?
It processes and makes data readily available for internal and external decision-makers.
What are three common small business accounting software packages?
MYOB, Xero, QuickBooks.
Why do small businesses prefer these software options?
They’re user-friendly and manage all accounting tasks, including financial statements, often without needing a trained accountant.
What type of software do large businesses use and why?
Enterprise Resource Planning (ERP) software, because it integrates large, complex data across departments (e.g., SAP, Oracle, Microsoft Dynamics).
What is the purpose of PowerBI in accounting?
To create dashboards and visual reports for high-level decision-making without requiring coding.
How is analytics changing accounting?
It improves decision-making by uncovering insights, generating visualisations, and summarising key data in dashboards.
What is the role of Artificial Intelligence (AI) in accounting?
AI learns from past behaviour to automate problem-solving, data analysis, and potentially auditing.
What is Natural Language Processing (NLP) used for in accounting?
To analyse text in financial reports, making complex info easier to understand.
How does Robotic Process Automation (RPA) help accountants?
It automates repetitive tasks (e.g., data cleaning), freeing time for higher-level thinking.
How might blockchain impact accounting?
Provides secure, permanent transaction records, reduces need for external auditors, lowers fraud risk but requires upskilled audit practices.
