Ethics is the moral principles that guide a person's behavior. While a business may boast of accounting applications it employs, what should not be forgotten is that it is the employees who operate the app and that the app works on the principle of garbage in garbage out. It is only after the good ethical behavior is established that the data presented in the financial statements can be deemed to reflect the true and fair picture of the business. Moreover, it is those statements that the public, that is, those outside the purview of the management and staffs, trusts.
The issue of ethics in accounting can be traced back to the Father of accounting Fra Luca Pacioli himself. However, with the change in accounting systems, from manual to automated. The norms have changed. These have to do with the proper use of accounting applications. What has changed is that the accountant should not worry about figures not tallying but making sure the app has not been breached internally.
As new cases wherein the established norms are circumvented, new sets of norms are formulated by the management or by somebody, that oversees accounting standards, the involvement depending on the scale of the incident. While the businesses may themselves curb unethical behavior in small scale, some large-scale unprincipled activities that affect many firms (or industry) may require intervention from accounting standards setting organization after which all the businesses are required to follow the norm. Also, it should be noted that ethical behavior might stem from other legal sources as well, Company Acts, Tax laws are some examples.
It is in view of making the workplace free of unethical practices that management puts forth its rules and regulations, its reward and punishments. The norms are applicable to all the personnel in the business, from low-level employee to senior members of the board of directors. And all businesses, be it small or medium or large, need to establish one. Small businesses cannot excuse themselves from this obligation citing their size.
Ethical behavior is expected in every department of an organization; from inventory to payroll from bookkeeping to document management. As an example, consider inventory management. Deliberate dissemination of inaccurate information, taking service (purchases, for example) from one vendor without regard to the quality or because of friendly relations or for the sake of financial benefit, prioritizing self over the business are but some of the instances where there is a breach in ethical code of conduct. What happens with the loss of moral behavior is that the business has to sustain a loss, the customers may be prevented from getting services that are not what they were promised. Other users may be denied the information of the state of the business.
This valuable information about online accounting applications shared by Accment for accountant or non-accountant firm. Accment provides bookkeeping document management, Online fuel inventory and day journal applications too.