Why traditional accounting can not adapt to the new market competition

The shortcomings of manual accounting are centered on the following: many processing links, dispersed processing content; repetitive processing processes, complex data reconciliation; long processing cycle, slow information transfer, feedback, and poor timeliness of financial reports.

Traditional accounting can be generally divided into accounting, analysis, inspection of the three parts, and thus the traditional accounting methods are also composed of accounting methods, accounting analysis methods and accounting inspection methods. With the increase in the level of social productivity and scientific and technological progress, especially the widespread use of electronic computers and modernization of management, the traditional methods of accounting has become increasingly unable to adapt to the changes in the accounting environment, but also increasingly exposed its shortcomings, mainly in three aspects:

1. Can not meet the needs of the market economy under the task of the completion of the accounting work

Traditional accounting methods Is compatible with the highly centralized planned economic system, because at that time, as the main body of accounting enterprises are only the administrative subordinate units of the state, the results of the enterprise's operations and financial situation is only responsible for the state, only to the state report. Therefore, the main body of accounting simply represents the interests of the state, the accounting object (object) only need to use accounting, analysis and inspection methods to complete the accounting task. In today's market economy, the enterprise is a self-managed, self-sustaining economic entity, the enterprise is not only responsible to the state, but also to investors, creditors, consumers and the public, and need to provide them with accounting information to help decision-making. Therefore, the traditional accounting methods are far from being able to meet the needs of accounting work in the new accounting environment.

2. Can not ensure that the new accounting functions to fulfill the needs

Traditional accounting methods are to reflect and supervise the function of the starting point and basis of the accounting reflection function determines the formation of accounting methods, accounting supervision function determines the formation of accounting analysis, inspection methods, and the modern accounting function has been expanded to forecasting, decision-making, controlling, evaluation of the accounting management functions, including. Traditional accounting methods must be a major breakthrough, otherwise, it can not guarantee the fulfillment of the new accounting functions.

3. Can not adapt to the role of a specific accounting object

Traditional accounting methods are based on the value of the movement as the object of the value of the information revealed only in the past value of the movement, while the modern accounting object not only includes the aftermath of the value of the movement, but also includes the value of the movement of the ex ante and in the event that the value of the movement of the movement that reveals the value of the movement of the present and the future of the information included. Therefore, the traditional accounting methods can not be adapted to the needs of each specific accounting object.

Because of the traditional accounting methods exist in the above three aspects of the shortcomings of the accounting method system improvement or reconstruction has been imminent, and the construction of a new accounting method system, one must give full consideration to adapt to the changes in the environment, namely, the economic system, management mechanism, the nature of the enterprise, the status of the accounting changes; the second must give full consideration to the changes in the function of the accounting in particular, the forecasting, decision-making, controlling, evaluating the expansion of management functions. Secondly, it must fully consider the changes in accounting functions, especially the expansion of forecasting, decision-making, control, evaluation and other management functions; thirdly, it must fully consider the changes in accounting objects, especially the present and future value movement.

The differences between traditional accounting and modern accounting are:

1. The purpose of management is different: traditional accounting focuses on bookkeeping, and modern accounting focuses on management;

2. Modern accounting is involved in other management systems of the enterprise, and the degree of linkage between the modern and traditional accounting is relatively low;

3. Management tools are different, and the traditional use of manual tools, such as the abacus, paper books, etc., and the majority of modern computers. The majority of modern computers.