Auditax International is an Partnership firm which was established in 2010 in Tanzania. Auditax International endeavors to become one of the world’s leading professional services firm, using a team of talented professionals to deliver value adding solutions through Audit and Risk Management services; Tax Services; Business Advisory Services and Accounting and Legal Services to transform businesses and people’s lives.
A large number of Auditax international people are Chartered Accountants (ACCAs) and Certified Public Accountants (CPAs), Experienced Tax Consultants and Certified Systems Auditors, highly trained and have an in-depth knowledge of local environment complemented by considerable International knowledge and exposure. Auditax International so far has two offices in Dar es Salaam which is the head quarters and a branch in Arusha.
Auditax International understands the power of information communication technology (ICT) tools for reaching business targets. It not only helps achieve the business goals but also optimizes the work processes. Computer technologies increase the use of information due to its capabilities of analyzing massive amount of data and in producing accurate and timely reports.
Information communication technology (ICT) has helped Auditax International to grow in a significant way and relatively faster compared to many other firms in the same industries in Tanzania.
Auditax International has seen the impact on Information Communication Technology (ICT) in the following ways:-
Information Communication technology has provided the firm with the ability to develop and use computerized systems to track and record financial transactions. These systems have increased the functionality in Accounting functions by increasing the promptness of accounting and financial information since all transactions, ledgers, spreadsheets have been translated into computer systems that can quickly present individual transactions into financial reports and hence the accountant can prepare reports on operations and analysis that give management an accurate picture of current operations. Also the transactions on financial reports have also improved by computerized systems and hence enable the auditors to track and trace the errors and fraud during the audit and give the opinion on the financial statements presented.
Faster Processing of accounting information
Computerized systems (accounting systems ) enables the accountants to process large amounts of financial information and process it quickly through the accounting system. Quicker processing times for transactions has also lessened the amount of time needed to close out each accounting period. Month- or year-end closing periods can be especially taxing on accounting departments, resulting in longer hours and higher labor expense. Shortening this time period aids companies in cost control, which increases overall company efficiency.
Most computerized accounting systems have internal check and balance measures to ensure that all transactions and accounts are properly balanced before financial statements are prepared. Computerized systems will also not allow journal entries to be out of balance when posting, ensuring that individual transactions are properly recorded. Accuracy is also improved by limiting the number of accountants that have access to financial information. Less access by accountants ensures that financial information is adjusted only by qualified supervisors.
Simplify Tax preparation and Return filling processes
Since tax laws keep on changing from time to time, it makes manual tax preparation of to become more difficult and consume a lot of time. The invention of tax preparation software helps the company to simplify the process. Therefore, instead of processing tax manually, companies can use computer software to perform the same functions. As a result, even complex calculations can be performed via computers in a short period of time. Also the return filling process has been automated and all returns can be filled online.
Simplify Audit processes
ICT has computerized Auditing profession. By the use of Audit software packages example trial balance software enables auditors to input the working trial balance, handle all types of adjusting entries, and automatically compute the adjusted trial balance. This helps Auditors to perform audit functions in a very short time compared to when they perform Audit functions manually.
Simplify the fund transfer process.
Auditax International uses Electronic Fund Transfer EFT to collect and make payment and electronically. Although the firm uses other methods too but In this case, when company wants to pay for accounts payable to its biggest suppliers Electronic funds transfer method is used. Also whenever firm makes sales to its biggest clients transactions are immediately charged to client’s bank account and simultaneously credited to firm’s account. Electronic funds transfer method is used since it is mostly preferred by its biggest clients and suppliers. In addition, all relevant accounts such as accounts receivable and cash are updated immediately by the computerized system. The use of the computerized systems mentioned above has led to the automation of accounting information system. Accounting information systems equipped with these kinds of technologically advanced tools can now perform accounting functions more effectively and reduce costs.
Data management and critical analysis
Data management has become easier when Information Communication Technology is used and it becomes paper-free. Many of the monotonous workin Auditax International has been no longer done manually. This has increased the efficiency of the work and the effectiveness of it. The firm’s performance can lead to the timely success of the business whether in a stable or an unstable environment since data can be stored, retrived, analysed critically non manually and become readily accessible for decision making.
Customer service and Human Resource Management
The firm’s performance can also be described by evaluating the reliability of service and by understanding the quality of customers of the firm. Value can come from providing a reliable service, so that the clients know that they will receive the service on time, at the promised time, to a good standard of performance. As a firm change is inevitable, critical success factors and key performance indicators are being revised, and relevant customer care IT tool must be devised for the better quality of work. Doing good quality work and providing quality results has increased the firm’s performance.
Human Resource Management (HRM)
Human Resource Management includes activities such as recruiting, training, developing and rewarding people in the organization. HRM must aim at achieving competitiveness in the field of HR by providing constant educational and training programs for the personal and professional development of the employees of the organization.
It has been conventionally proved that Information and Communication Technology (ICT), such as the Internet, mobile communication, new media, and such in HR can greatly contribute to the fulfillment of personnel policies of the firm. Information communication Technology advancements have a huge impact on the HR department of the firm since it has improved the recruitment system, training and development and rewarding systems in the firm. This has allowed the firm to improve its internal processes, core competencies, relevant markets and organizational structure as a whole.
ICTs are enablers for economic growth because of their crosscutting nature thus affecting all sectors. Adoption and proper utilisation of ICTs will lead, among others, to increased yields and quality production of goods and services. ICT industry can be resourced, properly managed and mainstreamed into a significant contributor to GDP of the country.
Mahmood, M. A., ; Mann, G. J. (1993). Impact of information technology investment: An empirical assessment. Accounting, Management ; Infomation Technology , 3 (1), 23-32.
Elliott, R. K. 1998. Who are we as a profession.And what must we become? Journal of Accountancy (February): 81.85
Gogan, J., L. M. Applegate, and R. Nolan. 1995. KPMG Peat Marwick: The shadow partner. Harvard Business School Teaching Note 5-196-066. (Dec. 1). Cambridge, MA: Harvard Business School.
Reardon, J., R. Hasty, and B. Coe. 1996. The effect of information technology on productivity in retailing. Journal Of Retailing 72 (4).
Shafer, S. M., and T. A. Byrd. 2000. A framework for measuring the efficiency of organizational investments in Information technology using data envelopment analysis. Omega 28: 125.141.
Smith, S. 1997. The smart way to invest in computers. Journal of Accountancy (May): 63.65.