topic 6 tech in accounting

Question 1

🟩 What is the role of technology in accounting?

Answer 1

• to automate, speed up, and improve the accuracy of accounting processes.
• makes data available in real time and reduces manual errors.

Question 2

What are the benefits of computerised accounting systems?

Answer 2

• Faster data processing
• Real-time information
• Fewer errors (if inputs are accurate)
• Automated reporting

Question 3

What are the disadvantages of relying on accounting technology?

Answer 3

• Vulnerability to system crashes, hacks, or power outages
• Over-reliance can reduce critical thinking
• Garbage in = garbage out (bad inputs = bad outputs)

Question 4

🟩 What is the difference between small and large business accounting software?

Answer 4

• Small biz software (e.g., MYOB, Xero, QuickBooks): Simple, all-in-one, user-friendly
• Large biz software (e.g., SAP, Oracle): Complex ERP systems for high-volume data and inter-department connections

Question 5

What is ERP software and why is it used?

Answer 5

🟨 Enterprise Resource Planning software connects various business functions (sales, payroll, inventory) into one central system — used by large businesses to manage complexity.

Question 6

Name 3 examples of small business accounting software.

Answer 6

MYOB, Xero, QuickBooks

Question 6

What is PowerBI used for in accounting?

Answer 6

To create data visualisations and dashboards for reporting. Helps users quickly interpret large amounts of data.

Question 6

how has technology changed the accountant’s role?

Answer 6

• From procedural data entry to analytical decision-making.
• Accountants now interpret data, offer insights, and use software tools.

Question 7

What new skills are required of modern accountants?

Answer 7

• Software literacy
• Data analysis
• Communication
• Critical thinking
• Ability to interpret and visualise data

Question 8

What is Robotic Process Automation (RPA)?

Answer 8

Use of bots to handle repetitive accounting tasks (e.g., merging spreadsheets, cleaning data), freeing humans for higher-level work.

Question 9

What is Artificial Intelligence’s role in accounting?

Answer 9

AI can analyse patterns, estimate values, and assist with tasks like auditing and financial forecasting.

Question 10

What is blockchain, and how might it affect accounting?

Answer 10

• A decentralised ledger system (e.g., used in crypto).
• May reduce the need for external auditors since transactions are verified by the network.

Question 11

What percentage of Australian businesses are small businesses?

Answer 11

~97.3% (as of June 2023)

Question 11

What programming and data tools are becoming important in accounting?

Answer 11

• SQL (for databases)
• Python
• R
• PowerBI
• Excel

Question 12

What key software did Monash provide access to in this unit?

Answer 12

MYOB (used in Assignment 2)