Accounting Information System

Accounting Information System

Introduction

Accounting information system is used to collect, store, develop and process the information of the data collected in order to help the decision makers in the decision making process. The main objective of the accounting information system is to develop an interrelation between the data collected in order to achieve the goals of an organization. There are several small subsystems working in the system of the whole organization and each system play its significant role in enabling the firm to reach the targets set by the management of the organization. In the today's technological world automation of the accounting information system has increased the efficiency and the effectiveness of the system in order to achieve better results for the organization. The information technology can also be used to bring day to day improvements in the present system so that the system gets better and better. It is due to the role of information technology in the enhancement of the accounting information system thus it also affects the strategy and the culture of an organization. The research report will provide an analysis of how the accounting information technology system plays significant role in creating a strong internal control system and help the organization in database management.

Discussion

In recent times when technology has been able to perform every function it is during these days information technology system has also benefiting the organizations by providing them an accounting information system. According to Hall (2011) accounting information system is the structure of an organization through which the information is collected, the information is analyzed and then the reporting of the information is done. The accountants and the other management of the organization take the help of the information technology in order to understand the business system, processes in the business and do accounting of the system of the organization. Altogether information technology adds value to the information system. The accounting information system performs several functions in making it able of achieve the mission of the firm as soon as possible. According to Gelina, (et. al, and 2011) the major functions of the accounting information system are: first and the primary function are to record and gather data about all the events, resources of the organization, suppliers and customers of the organization. The second function of the accounting system is to present the data and records of the organization to the management in a way that it would facilitate them in their decision making process. The third and the most important function of the accounting information system is that it provides the management ability to develop a strong controlling system of the whole organization by keeping an effective control over the resources of the organization. The accounting system information is supported by the different subsystems developed by the organization. These smaller subsystems facilitate by providing information and running in a way that could support the mission of the organization. It is important for the organization to develop a system that is simple and ...