TRANSACTIONAL PROCESSING IN AIS

Transactional Processing In AIS

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18-Feb-2012

Abstract

This paper studies the accounting information system in detail. Accounting information system is a computer-based system that gather, record, accumulate, and process data to maintain the organization's system of accounts. This study also proposed the technological change in Dell workflows associated with revenue cycle, expenditure cycle, human resource cycle, and financial reporting. This study also asserts some internal control regarding these processes. Finally, discusses the change management strategy to implement change.

Improving Transactional Processing in AIS

Introduction

Today, the business environment becomes more dynamic and competitive because of the rapid requirements of decision-making in the businesses that highly demands timely and reliable information. The success or failure of an organization depends on its decision, specifically sensible, significance, and timely decision; and AIS help organizations in making accurate and timely decision for businesses.

Romney and Steinbart (2002) defines accounting information system (AIS) is a system that gather, record, accumulate, and process data to maintain the organization's system of accounts. Accounting information system facilitates in the business processes such as, sales, procurement, purchase, and other financial processes. Accounting information system facilitates investing, crediting, and other managerial decision making processes by providing real-time information to the decision makers. The accounting information can be generated manually, multifaceted computer system and by employing information technology, or combination of both. Additionally, Orshesky (2003) demonstrates computer system assists in ensuring steady technology application; user must follow standard procedures and processes, which are feasible, comprehensive, can be replicate, and understandable.

Romney and Steinbar (2009) affirmed that accounting information system is composed of six components that are the system user; the procedures to collect, organize, and store data; data related to business processes; software, infrastructure of an information technology that supports functions to operate and perform efficiently; and in maintain internal controls that provide safeguard.

The role of accounting information system is essential in managing an organization, and to implement internal control system. Today, organizations are concern about the fit between accounting information system and the requirements of the organization regarding communication and control. There are numerous benefits of accounting information system implementation in an organization such as, increase the effectiveness in decision making process, installation, performance evaluation, facilitates in transactions, purchase, and managing internal controls. The importance of accounting information system is similar for all organizations whether multinational or small-medium size organization.

In an organization, the decisions are made by various departments that based on the information generated and store by themselves. This may results in duplication of information throughout the organization that leads to inefficient and inaccurate decision because the process of decision making is not timely and effective. There is a need of close internal integrated business processes within the departments of an organization, and then an organization is able to achieve departmental goals as well as can effectively focus on organizational goals. Mostly, the achievement of goals is measured in numbers or financial figures, and such financial information is generated by accounting information system to evaluate business ...