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Accounting information system

Introduction

Accounting information system (AIS ) is a term used to refer to the entire study and practice of accounting with the design , implementation and maintaining of information systems . Accounting information system through the use of modern information technology resources and traditional accounting controls and methods , provide useful financial information necessary for their users to effectively and efficiently manage their organizations . However most businesses have tended to shift towards modern technologies to aid their accounting information systems

When

using accounting information system , information can be put into the system in a number of ways . These include scanning devices for standard data entry electronic communication devices for electronic data interchange (EDI ) and e-commerce . In to allow devices to connect to the worldwide web , many financial systems are web enabled The information that has been tapped is processed through computer systems ranging from individual personal computers to large scale enterprise servers . Despite the development in processing accounting information , the underlying processing model is still the double entry accounting system that was introduced in fifteenth century (Weber 1998

Once accounting information has been processed , it is output through computer displays , impact and non-impact printers and electronic communication devices for EDI and e-commerce . Any financial report can be produced through accounting information system . These may include budgets , tax reports as well as multinational financial statements (Gelinas , 1993

Development of accounting information systems

Development of accounting information system goes through different phases including planning , analysis , design , implementation and support with each phase taking different durations . The phases are as explained below : the first one is planning-project management objectives and techniques . It involves determination of scope and objectives of the project , the definition of project responsibilities , control requirements , project phases , project budget and project deliverables

The second phase is analysis which helps to determine and document the accounting and business processes used by the organization . The processes are redesigned for competitive advantage and dynamism in modern system solutions . The analysis can take the stated forms : data analysis-this is done in designing accounting transactions processing system , whereby accounting information being collected by an organization is reviewed . This data is then compared to the standard data that the organization should be using for managerial purposes Decision analysis-is another form of analysis whereby an individual managers decisions are thoroughly reviewed . Models are then created to support the user collect financial and related data create and design alternatives , and to make workable choices . Process analysis-this is done in to properly review the organization 's business processes the various processes in the organization are identified and broken down into a series of events that either add or change data the processes are then modified and tailored to boost the organization 's operations . This can be achieved through lowering cost , improving service quality or management information . This method is desirable in organizations that deal with automation or engineering (Choe , 1996

Design phase- at this phase , the results from the analysis phase are tailored...