Atul Khurana

“Information technology and businesses are becoming inextricably interwoven. I don’t think anybody can talk meaningfully about one without the talking about the other”- Bill Gates

Concept of Information technology (IT):

Basics: Information technology is the use of computers and software to manage information.

Also referred to as MIS i.e. MANAGEMENT INFORMATION SYSTEM or simply, we termed it as:

IS i.e. INFORMATION SYSTEM

Understanding what IT can and can’t do: If you have a commitment and a mind set than IT is a terrific enabler , But, if u don’t have any practices then IT is not a magic wand that will do it for you

  • IT can dramatically improve the EFFICIENCY and EFFECTIVENESS of your existing practices
  • IT brings STANDARDISATION.

IT in CA profession

CA profession includes a plenty of work to be done required by the enterprises. For eg: Audits, filing of returns , providing   consultancies etc.

To done these jobs successfully, CA’S requires RESOURCE MANAGEMENT and this facility is provided by the IT sector

What is the need for IT in CA?

“Information strategy is the key step because it establishes the mechanics to make the vision of making information a business asset into an operational reality,- says Srini Pacallia, Senior Vice President, Business Technology Services, Wipro Technologies.

  • To compete with the Increasing availability and granularity of data in enterprises
  • To make the business processes more collaborative, flexible and agile to address changing business needs
  • The ability to gain insights through access and use of the right information in the organization is critical to enable fast and accurate actions.

Various ways for using IT:

  • Fortify Your Business with Risk Management: Risk management can save your business big money. Though it sounds very dry and dusty, it is actually an extremely practical and simple method to strenghten your business. Five simple components add up to a direct and quantifiable result:

RISK, PROBABILITY, LIABILITY, EXPOSURE, CONTROL

  • Find Great Staff:
    Great employees are almost priceless. If your business relies on their expertise and integrity, treat them like kings and queens. Then, Your job posting is very important in attracting the right people. Work with your IT staff to write the appropriate job description when hiring new people.
  • Document Everything:
  • When you bring in that consultant for a midnight emergency six hours before your morning shift begins, proper documentation can save your thousands in operating costs and consulting fees
  • Organize Your Information: Here is a simple methodology for organising and securing all of your company data:
    • Store all company files on a file server, not on workstations
    • Create folders and permission groups for each department.
    • Assign users to groups and assign groups to folders
    • Assign certain users to multiple groups if their job function requires it.
    • Create a common area for files that require review by multiple departments.
  • Analyze Software Options: It includes three options:
  • One option is to find a close match and pay the vendor to customize it for you.

Another option is hire a software development firm to extend an open source package.

A third option, is usually the most expensive and time consuming, is to develop a package in-house.

Benefits to businesses:

Use of DATABASES, so whatever is recorded can be leveraged , Enhance EFFICIENCY, Data for generating reports which helps you to manage better, Shorter turnarounds on invoice generation and collection ,Works SMARTER than harder,Reduce/ eliminate PAPERWORK ,REDUCE DEPENDENCE on individuals. So. Brings FLEXIBITY with dealing with clients and therefore, gives better responses

Areas where you can use IT:

OPERATIONS , HR, REVENUE MGMT. , NETWORKING

IT in OPERATIONS :

IT helps in operations as: EXECUTION , PLANNING and SCHEDULING , RESEARCH , DOCUMENT MGMT.

EXECUTION of WORK:

Task management:- Helps in Tracking work, Reaching our DEADLINES, Tracking Errors, Identifying areas for improvement,Identifying areas where training is required

Document Management

For documentation, Various softwares are available,Even ICAI has provided free software to its members, Helps in STANDARDISING the way the data is created, stored and retrieved, E-LIBRARY

RESEARCH:

     Various softwares are now available which gives various case laws at the click   of the mouse, Ease of referance, Ease of search, no need to keep physical books, the initial search on the case laws can be done by the junior- saves your time, most such softwares are portable and hence they can be assessed on mobile phones, tabs, etc.

IT helps in HR as

RECRUITMENT , LEAVE MGMT. , WORK FROM HOME

Recruitment: Recruitment through TRADITIONAL METHODS v/s. Sourcing through ONLINE SITES like naukri.com etc

Advantage of registering with those sites as an employer- you can track your own employees

Leave management:Accurate management of leaves, Connected to computer so you can get MIS report,Connected to payroll system,Facilitates flexi timing, No tinkering possible

Working from Home:

Once the proper jobs are assigned, processes are in place, document creation is standardized and staff is trained, tge supervisor can rely on the output.So, he can operate his work from his home or anywhere else where he wants.

IT in Revenue Management

Famous speaker and guest lecturer of Harvard Business School Don Burr regrets that fact that he failed to predict actual role of technology that it can play in successfully implementing a revenue management system. He confesses that “People Express” collapsed because it hadn’t installed the database management system for the purpose of collecting and storing information required for carrying revenue management processes

IT helps in revenue mgmt as:

BILLING and COLLECTIONS: Various accounting softwares can be used to generate MIS reports which can be exported to spreadsheets.

Following can be prepared using the above:

Partner wise billing, Client wise billing, Ageing etc.

Information technology helps in making the data collection procedure faster and effective.

IT in NETWORKING:` Business networking is socioeconomic activity by which people of different groups of like minded business people recognize, create, act upon business opportunities.

Networking includes:

1)Your firm’s website: The following are the aspects:

Do you have a website? Do your website come up in any search? Have you paid attention to SEO (Search engine optimisation)?

2) Webinars for clients, staff and others: It is a Web-based seminar, a presentation, lecture, workshop or seminar that is transmitted over the Web.

A key feature of a Webinar is its interactive elements — the ability to give, receive and discuss information. Contrast with Webcast, in which the data transmission is one way and does not allow interaction between the presenter and the audience.

Technology allows collaborators across boundaries to meet online.

All kinds of tools available to conduct online meetings and seminars. ICAI has already started conducting webcasts and webinars

Webinars are useful as: Instead of phone calls talk to your partner using webinars across cities,Train your staff using webinars, Inform your clients about imp. Changes using webinars, use e-learning modules for imparting training to staff

3) E-NEWSLETTERS:

Very popular mode of sharing information, Most larger firms now send In-house and outside E-newsletters, Very easy to convert to various formats which can be then easily send using e-mails

4) Your presense and contribution to networking sites:

Networking sites were launched in 2004, certain networking sites are there which are most preferably used by the CA’s

LINKEDIN: LinkedIn is a social networking site designed specifically for the business community. The goal of the site is to allow registered members to establish and document networks of people they know and trust professionally.   As of january 2013, linkedin reports more than 200 million registered users , spanning more than 200 countries and territories worldwide. The site is available in many languages.

How it helps to CA’s:

Large no. of active groups are there in linkedin, very interesting discussions take place, enables members to develop thought leadreship, share of presentations, allows you to put up staff sourcing requirements, even travel related info is available

BLOGS:

A blog is a discussion or informational site published on the World Wide Web and consisting of discrete entries (“posts”) typically displayed in reverse chronological order

Many blogs provide commentary on a particular subject; others function as more personal online diaries. It helps a CA as:

There are several blogging sites, bloggers can share views with others, faantastic features are available, allows bloggers to develop thought leadership, and the most interesing feature of blog for a CA is that if a CA wants then he may put up his articles on a blog.

SECURITY ISSUES

For better security:

Buy only LICENSED software , Go with reliable IT partners- don’t compromise on quality over price

CONCLUSION:

Information technology in CA prof. is a key tool for helping to improve data care, quality, safety, and efficiency but One of the biggest challenges to CA Profession is the incorporation of information technology in our practices.

(For any query related to above article author may be contacted at atulkhurana9@gmail.com  and works as Taxation & Audit Assistant with Bhutoria Ganesan & co., Chartered Accountants, Chandigarh)

More Under CA, CS, CMA

Posted Under

Category : CA, CS, CMA (3826)
Type : Articles (17571)
Tags : Atul Khurana (14)

0 responses to “Impact of IT on CA Profession”

  1. CA Sunil Vinchu says:

    Dear Mr.Atul, Thanks for a rather practical thinking on IT and CA profession. It would have been rather apt and timely to have given the sources available to get the in depth knowledge hereof to Senior CAs like me. This is especially important specially since the ICAI has take a lot of initiative in this regards at its branches.
    It would have also been better if the avenues of learning would have also been given in a highlighting manner, in this connection. However rather a timely and a good write up in this regards I would say. Please accept my compliments in this regards.

Leave a Reply

Your email address will not be published. Required fields are marked *