Benefits Of The Accounting Information Systems

Benefits Of The Accounting Information Systems

Read published articles and recent professional reports (PWC, KPMG, E&Y, Deloitte, and
McKinsey & Company) and submit a report about the accounting information systems, covering
the bellow points:
1- What is the meaning of AIS.
2- What are the benefits of AIS.
3- How the AIS could be helpful to achieve the companies’ goals and objectives.
4- How the study of AIS relates to the other subjects you learnt in accounting major.
5- Conclusion and recommendations.

*Include decent amount of information
*APA style references

 

Solution

Definition of AIS

According to Pricewaterhouse Coopers (PWC) which is a multinational profession
services system of companies whose headquarters are in the UK, Accounting Information
System (AIS) is a branch of accounting that involves collection, storage, and processing of
accounting and financial data. The data is used by internal users to make comprehensive reports
used by investors, creditors, and also tax authorities. The accounting system is also a computer
based approach for analyzing and recording accounting activities in juxtaposition provided by
information technology resources. According to Huerta and Jensen (2017), AIS incorporates the
traditional accounting principles including Accepted Accounting Principles (GAAP) in relation
to contemporary information technology resources.
Benefits of AIS

AIS have significant elements involved in the accounting cycle, for instance, data relating
to revenue, customer information, employee’s information, expenses, and tax information. Due
to the above, AIS is crucial since it assists in interdepartmental interfacing. The sales department,
for example can upload the sales budget for top managerial analysis and the inventory
department can easily conduct inventory accounts and procure needed industrial inputs. Upon the
procurement, the system will display a notification concerning the new invoice to the accounts
payable department.
Based on KPMG International Cooperatives, AIS also serves in the internal control
processes where policies and regulations are formulated within the system to conduct sensitive
customer, vendor, and business information is sustained in the company. By the use of physical
access approvals, authorizations, segregation of duties, login requirements, access logs, and users

ACCOUNTING INFORMATION SYSTEM 3

can only access relevant information required to run their business functions. Thapayom (2015)
indicated that AIS boosts the overall competitive advantage of the firms.
Application of AIS to achieve companies’ goals and objectives

AIS plays a very significant role in achieving a company’s goals and objective since it
assists in collecting net worthy firm data. Specific data include sales orders, check registers,
payroll ledger, inventory, trial balance, financial statement information, and purchase
requisitions invoices. The accountants and bookkeepers gather the above data to process
meaningful reports that are applicable in the decision making process in the internal and external
management. The substantial management reports are used to evaluate past and current
company’s performance in the competitive market (Pearlson, 2019).
Additionally, AIS provides a safe and accurate management techniques to the management
body where limited information can be portrayed to only specified group within the organization.
When anything goes wrong in the management process, it is simple to track down the digital
footprints of the person responsible for the activity. In relation to this, only a few clicks to obtain
what is needed thus saving time and resources of the company.
Relationship of AIS and other subjects

For the wide scope of accounting, AIS relates with a majority of other subjects including
economics. AIS helps in recording transactions of income and expenditure that relate how
individuals earn thus studying the behavior of buyers and sellers. Besides, Vysotskaya (2016)
concluded that AIS and mathematics are closely related since mathematics is the language of
accounting. Computer science on the other hand, closely relate with AIS since the world
computer is derived from the term compute whereby, accounting is all about computation.

ACCOUNTING INFORMATION SYSTEM 4

AIS and statistics are even deeply related since the main objective of the two subjects is to
derive arithmetic figures that are understandable and logical to the users. Additionally, NIS
serves the same function with political science in recording national income and expenditure
together with national development prospects.

Conclusion and recommendations.

AIS is a critical aspect in the modern age of accounting that can never be overlooked
since it plays distinctive roles in the management processes in the firms. The system helps in
collecting data and processing the data to obtain meaningful information that is used to make
critical managerial decisions. The information is used to develop financial reports that show the
financial position of the firm to implement long run strategies. The reports also helps in
retaining customers by providing customers satisfying services that are safe and fast. Besides, the
principles of AIS are applicable since they relate with numerous subjects including, economics,
political since, computer science, engineering and mathematics.

ACCOUNTING INFORMATION SYSTEM 5

References

Huerta, E., & Jensen, S. (2017). An accounting information systems perspective on data
analytics and Big Data. Journal of Information Systems, 31(3), 101-114.
https://www.aaajournals.org/doi/abs/10.2308/isys-51799
Pearlson, K. E., Saunders, C. S., & Galletta, D. F. (2019). Managing and using information
systems: A strategic approach. John Wiley & Sons.
https://books.google.com/books?hl=en&lr=&id=nwO2DwAAQBAJ&oi=fnd&pg=PA1&
dq=role+of+Accounting+information+syatem++2019&ots=kH8I0fEcl7&sig=AD9ULM2
zCYgGmktJojQSitCTznM&redir_esc=y#v=onepage&q=role%20of%20Accounting%20i
nformation%20syatem%20%202019&f=false
Thapayom, A., & Ussahawanitchakit, P. (2015). Accounting information system excellence and
goal achievement: evidence from information and communication technology businesses
in Thailand. The Business & Management Review, 7(1), 309.
https://search.proquest.com/openview/15fec483fa9daaf358cfb4c31cf0df44/1?pq-
origsite=gscholar&cbl=2026610
Vysotskaya, A., Kolvakh, O., & Stoner, G. (2016). Mutual calculations in creating accounting
models: A demonstration of the power of matrix mathematics in accounting
education. Accounting Education, 25(4), 396-413.
https://www.tandfonline.com/doi/abs/10.1080/09639284.2016.1191273

 

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