ACC 564 - Accounting Information Systems



ACC 564 - Accounting Information Systems

Chapter 1

Problems 1.1

The purpose of accounting is to provide financial information about an economic entity. Administrative decision makers need that company's financial information to make a good planning and controlling the activities of the organization. The role of the accounting system of the organization is to develop and communicate this information. To achieve these objectives can be done using computers, as well as records manuals and reports printed.

An accounting information system includes the methods, procedures and resources used by an entity to take controlling financial activities and summarize them in a form useful for decision-making. Accounting information can be classified into two broad categories:

The accounting or financial accounting outsourcing.

Accounting costs or internal accounts.

Financial Accounting: displays the information provided to the general public, and not involved in the management of the company , such as shareholders, creditors, customers , the suppliers , financial analysts, among others, although this information is also of much interest to managers and directors of the company (Bagranoff, 2008) .

This accounting provides information about the company's financial position, their liquidity and the profitability of the company. The accounting information system begins with a design. The manager and the designer explores the goals and organizational structure of the company. It also identifies the information needs of management, analyzing in detail information processing tasks. The designer must take into account staff who operate the system, documents and reports to produce and the equipment to be used.

Almost all information systems use a computer, at least for some jobs. Some public accounting firms specializing in the design and installation of accounting systems for its customers. The purpose of an accounting information system is preparing financial statements and other reports used by managers, creditors and others interested in evaluating the business. Companies use computers to meet specific needs. The accounting system of a company may use the computer for accounts receivable and cash receipts and a manual for the rest of its operations.

Today the information processing plays a fundamental role. New technologies are helping to move the accounting information in a more quick and easy. They can change the way we collect, store, process, distribute and analyze information. The economy is based on technology and information companies now see the need to transmit high-quality information and likewise expedite the process for good decision-making and to make available all information for the time required by the user. The new technologies, especially Internet, today provide the company capacity to develop and provide users with useful and relevant information for decision, both in quantity and quality both in terms of history and future (Hall, 2008).

One of the problems is that the information fails to be relevant and useful as it should be provided to stakeholders. The implementation of technology can facilitate the development of various reports by the accounting cycle faster and so make the right decision. An essential aspect of the information generated by the accounting system is that it is directed to ...