Paper Example: Challenges Faced by Accountants in Driving and Monitoring Organizational Performance

The step-by-step sequence used by an organization to monitor its financial flow and accountability is a crucial role bestowed to a senior employee referred to as an accountant. The accountant is the overall financial manager and advisor to the organization. The accountant is in charge of the financial processes involving revenue collection, accounts payable, procurement, accounts receivable, preparation of the payroll, as well as making purchases on behalf of the organization. The accountant is also in charge of budget preparation, forecasting, as well as preparing and reporting financial statements at regular intervals. These roles pose many challenges to the accountants. (Goretzki, Strauss and Weber 2013)

The difficulties experienced by the accountants in driving and monitoring organizational performance are evident in the duties and responsibilities that keep them preoccupied with data collection, data capture, data manipulation and producing the desired outputs for organization consumption. This repetitive process is tiresome and burdening. Chances of making errors are high. Such errors may include entering a wrong figure say $10,000 instead of $1,000 on the payment column in the payroll. This amounts to an employee receiving an excess of $9,000. This enormous error will reflect in the final statement, say trading profit and loss account. It will be difficult for the accountant to explain the anomaly and this may bring about integrity issues on the part of the accountant. (De Loo, Verstegen and Swagerman 2011)

The other difficulty faced by accountants come with lengthy period they take doing the same task. This process is not only time consuming and preoccupying but also a loophole for committing errors and inviting wrong entries. While these may not be intentional, the management may view it as an inefficiency or a deliberate move by the accountant to fraud the organization. The challenge is evident where the accountant is making payment on behalf of the company.

Characteristics of connectedness

Connectedness brings about efficiency in handling business transactions within and outside the organization set up. It brings about harmony of employees which translates to increased transaction processes. Where the technological component has been used, like in sales, the accountant can track and monitor the movement of stock.

Connectedness facilitates sharing of organizational physical resources. A corporate that employs the use of smartphones in its operations makes the work of the accountant more straightforward and cheap. The productivity of the accountant will improve through utilization of apps supported by the facility. Such apps enable the accountant to arrange business travels, link with customers, management, and the staff. The smartphone also can be installed with apps to prepare and generate financial statements through commands. The generated files can be stored in the device memory or cloud storage, shared through the emails to the statutory and interested recipients, file returns to tax authorities and even reproduce copies through linked printers both wireless media and physical media like cables. (Chan 2015)

Application of real-time connectedness

Applying the principle of interconnectedness, the accountant can maximize returns through linked resources. Connectedness is characterized by the ability to utilize least resources to reap maximum benefits. The use of financial management system that is automated to manage all financial processes that are identifying a transaction process from the original source like a purchase order records the transaction in the relevant journal, posts the entry in its correct ledger account and further generates a preliminary trial balance. The entire system guarantees real-time responses that affect subsequent processes that can be used to make immediate management decisions.

Utilization of 'what if analysis' in spreadheets as supported by smartphones can help the accountant and management forecast sales and profits within a particular period. The use of the smartphone also supports video conferencing where the employees of the organization can hold a meeting and give ideas on how to improve the productivity of the organization. The smartphone also supports other interlinked applications that promote the organization like the WhatsApp group.

Use of apps to capture data directly or by automated transactions help the accountant avoid the occurrence of any error as demonstrated by the challenges the accountant faces.

In conclusion, the challenges faced by accountants can be overcome by a system that utilizes technological advancement and connectedness. Such a system will enable the accountants and the organization they work for increase their productivity and achieve maximum benefits. This will not only satisfy the organization and the staff also the stakeholders and all other interested parties. Connectedness helps solve challenges associated with manual data processing. (Taipaleenmaki and Ikaheimo 2013)

References

Goretzki, L., Strauss, E. and Weber, J., 2013. An institutional perspective on the changes in management accountants' professional role. Management Accounting Research, 24(1), pp.41-63.

Chen, H.J., Yan Huang, S., Chiu, A.A. and Pai, F.C., 2012. The ERP system impact on the role of accountants. Industrial Management & Data Systems, 112(1), pp.83-101.

De Loo, I., Verstegen, B. and Swagerman, D., 2011. Understanding the roles of management accountants. European Business Review, 23(3), pp.287-313.

Verschoor, C.C., 2012. Proposed global whistleblower standard presents challenges: the IESBA issued an exposure draft describing how professional accountants should respond when they discover unethical and illegal acts in the course of their duties. Intended to encourage accountants to blow the whistle on unethical companies or individuals, some of the changes may conflict with other ethical responsibilities. Strategic Finance, 94(4), pp.12-16.

De Lange, P. and Watty, K., 2011. Accounting education at a crossroad in 2010 and challenges facing accounting education in Australia. Accounting Education, 20(6), pp.625-630.

Stone, G., 2011. Let's talk: Adapting accountants' communications to small business managers' objectives and preferences. Accounting, Auditing & Accountability Journal, 24(6), pp.781-809.

Chan, M., 2015. Multimodal connectedness and quality of life: Examining the influences of technology adoption and interpersonal communication on wellbeing across the life span. Journal of computer-mediated Communication, 20(1), pp.3-18.

Taipaleenmaki, J. and Ikaheimo, S., 2013. On the convergence of management accounting and financial accountingthe role of information technology in accounting change. International Journal of Accounting Information Systems, 14(4), pp.321-348.

Lim, F.P.C., 2013. Impact of information technology on accounting systems. Asia-Pacific Jornal of Multimedia Services Convergent with Art, Humanities, and Sociology, 3(2), pp.93-106.

Alves, M.D.C.G., 2010. Information technology roles in accounting tasks-A multiple-case study. International Journal of Trade, Economics, and Finance, 1(1), p.103.

Mauthner, N.S., 2012. Accounting for our part of the entangled webs we weave'1: ethical and moral issues in digital data sharing. Ethics in qualitative research, p.157.