This is a full summary of the Digital Part 2 Department of your BSCI112 module if you are a NWU student.
If you are not a NWU student you can still use this summary if you have Business sciences as a module at your university.
Chapter 4 : Digital technologies and the finance function : p.69
2. Key technologies and the finance function:
2.1 The uses of technological developments by the finance function
Considering how the finance function might use the key technologies or be impacted
by them.
Finance function might view these as opportunities or as a threat.
It the technology is a threat, the company should turn the threat into opportunities
by elimination.
The finance function has greatly been affected by new data sources and analysis
methods (Big data and predictive analysis) and automation and Cognitive
computing.
Technologies, such as Cloud computing and data visualisation, are the core tools.
Other technologies such as Blockchain and Data analytics are referred to as
exponential – they are creating new capabilities and driving finance functions
forward.
2.1.1 Cloud computing and cloud accounting:
Cloud computing is changing the structure and working of the finance function by :
Flexible working – staff can work in different locations at different times.
Collaboration – files can be shared and updated by multiple staff in real-time.
Keeping Software continuously up-to-date – improving compliance with data
protection regulations.
Improving the integration of software.
Improving data security- could providers better understand how to protect data.
Cloud accounting :
Def: The provision of accountancy software through the cloud.
Users log in to the accountancy software to process financial transactions and
produce management reports in the same way as if the software was installed on
their own machine.
Examples – QuickBooks, Xero and Sage.
Key benefit – supports the various finance components to work as a team.
, 2.1.2 Big data and data analytics :
Assist the finance function’s work by looking at internal and external data.
Internal data :
- Analytics can help with identification, quantification and management of risk within
an organisation.
- Benefit to internal audit function, it help focus its work on key business risks.
External data:
- Can be used by the management accounting function to support performance
management.
Financial accounting:
- Big data can support the development of more relevant and useful information that
can be used to improve future accounting standards.
Financial reporting:
- Big data can support the development of more relevant and useful information that
can be used to improve future accounting standards.
2.1.3 Process automation:
Automation is changing the work of the accountant from recording and verifying low-
level transactions, to higher-level activities such as producing and analysing reports.
Is increasing the effectiveness of accountants , because of spending less time on
routine tasks and more time on value-adding services.
It also improves accuracy.
Advantages and disadvantages:
Advantages Disadvantages
Frees up staff time to focus on value- Training costs can be significant.
adding activities
Headcount can be reduced, this helps to Implying the system involves change
reduce costs. which must be managed carefully and
thoughtfully.
Removal of human error will improve Systems may create uncertainty over job
accuracy of information. security and future prospects in staff.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller anjevanpletzen. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R75,00. You're not tied to anything after your purchase.
