Role of IS/IT

Role of IS/IT

Tax accounting is responsible for helping companies and clients with their income tax and financial statements. It is important to note that tax accountants research, study, and interpret tax law. In a bid to help them dispense their duties in their places of work, Information Systems, and Technology (IS/IT) plays a vital role in helping organize and follow up on taxation. Tax accountants take advantage of information systems and technology, such as the accounting information system in the various Income Tax Departments (Saeidi, Prasad, & Saremi, 2015). It is vital to point out the accounting information systems have proved to be effective in tax collection and audit as a result of the accessibility of capable control systems supported by technology, improved computer systems, and a proficient workforce in terms of human resources.

That dramatically impacts positively on the output of the data collected, thereby resulting in well-detailed statistics that have utilized the minimal time to generate and are also cost-effective at the same time. Therefore, the use of accounting information systems as a form of IS/IT has proved to be efficient in the generation of quality data regarding tax information submitted to various Income Tax Departments for processing. They are hence reflecting positively on the output of different sectors of businesses and the economy at large in the context of taxation. Another form of IS/IT used in tax accounting is the Tax Based Accounting Systems. This form of IS/IT specializes in filing tax returns at the end of each financial year (Saeidi, Prasad, & Saremi, 2015). The critical advantage of tax-based accounting systems in helping tax accountants perform their duties is that they are simple to use and interact with because they purely deal with reporting and filing returns.

Also, they are cost-efficient and saves on time, particularly in helping small firms in organizing their paperwork by providing the required structures. It is important to note that these information systems and technology enable tax accountants to support data mining, develop enhanced modeling, streamline as well as automate reporting. Reporting is crucial for tax accountants since it allows them to present timely and summarized data used in financial reporting and making decisions.

The information systems and technology have the potential of changing the role of tax accountants in the next five years. That is because developments are still taking place in the field of tax accounting in a bid to simplify the process of collecting and filing taxes. For instance, improved software and programs in the field of tax accounting may make tax accountants to be involved in little or no paper works since most of the work will be automated and computerized (Al_Frijat, 2013). That may necessitate the tax accountants to seek more knowledge in information technology in a bid to acquire the necessary skills needed to manage and oversee the software put in place. Therefore, these developments will change the roles of tax accountants from paper-based to computer-based since the software will have the capacity of computing complex calculations through the support of the computers.

Additionally, the tax accountants will acquire new roles of being conversant with the hardware of these information systems and technology so that they can be able to sort out technical glitches if they arise. That hence necessitates training the tax accountants and the general workforce on harmonization of tax-based accounting systems. Also, the tax accountants will be compelled to take part in the preparation of information systems and programs that assist in the speedy performance of the workload in the various tax departments.

 

 

References

Al_Frijat, Y. S. (2013). The Impact of Accounting Information Systems Used In the Income. Journal of Emerging Trends in Economics and Management Sciences, 5(1), 19-25.

Saeidi, H., Prasad, G. B., & Saremi, H. (2015). The Role of Accountants in Relation to Accounting Information. Bulletin of Environment, Pharmacology, and Life Sciences, 4(11), 115-123.