Implementing new accounting system information can be difficult because it may involve many areas, such as accounts payable, inventory and sales.
IMPLEMENTATION OF ACCOUNTING INFORMATION SYSTEMS
The steps necessary to implement a successful information system in the organization are as follows:
Detailed Requirements Analysis
In the very first step, all individuals involved in the system used in the Amoy Chemicals are interviewed. The current system is thoroughly understood, including problems such as: breakdown by location and by consumer group. The complete documentation of the current system used in the Amoy Chemicals is also gathered. This would help you to know where the problems arises in the previous system and how do you control your costs in the near future.
The analysis is thoroughly reviewed and a new system is created in this organization. What data needs to go into the system and how is this going to be handled? What information needs to come out of the system, and how is it going to be formatted? If you know what needs to come out and what you need to put into the system then the program you have selected will appropriately handle the process. The system is designed to include appropriate internal controls and to provide management with the information needed to make decisions.
As the system is being designed, it is documented. The documentation includes vendor documentation of the system and, more importantly, the procedures, or detailed instructions that help users handle each process specific to the organization. Most documentation and procedures are on-line and easy to handle.
Prior to launch, all processes are tested from input through output, using the documentation as a tool to ensure that all processes are thoroughly documented. It is also ensured that users can easily follow the procedures so that you know how it is working. This is all done in a test system.
Prior to launch, all users of the information system in the organization i.e. production manager, sales manager and other concerned members need to be trained with procedures. This means, a trainer using the procedures has to show each end user how to handle procedures. The end user then first performs the procedure with the trainer and the documentation and then performs the procedure with the documentation alone. Launch
The system is implemented only AFTER all of the above is completed. The entire organization is aware of the launch date. Ideally, the current system is retained and often times run in "parallel" until the new system is in full operation and deemed to be working properly. Support
Support has two objectives. The first is to update and maintain the information systems. This includes fixing problems and updating the system for business and environmental changes. For example, changes in generally accepted accounting principles (GAAP) or tax laws might necessitate changes to conversion or reference tables used for financial reporting. The second objective of support is to continue development by continuously improving the organization through adjustments to the Accounting information systems caused by business and environmental changes. These changes might result in future problems, new opportunities, or management or governmental directives requiring additional system modifications.
Figure [ 1 ]: SYSTEM DEVELOPMENT LIFE CYCLE
2. It is important to carry out a system survey before a new system project should be approved because of following reasons:
* The current system of Amoy Chemical has to be surveyed to identify what aspects of old system should be kept. The current system of Amoy Chemicals is...