An Accounting information system collects, store and process the data into information which is being used by the managers, investors and creditors. These systems includes software which makes things easy to process the financial data for bookkeeping, Payroll and tax purposes. Accounting information systems are based on 6 components. * An Application to process the financial data.
* Policies and procedures to secure the financial data.
* Users who will use this system.
* The physical devices and systems for operations and performance of AIS. * Instruction and methods that will be involved in collectioning, storing and processing financial data. In this report we are discussing the importance and the factors which can influence the success and failure of accounting information system. Task 1: Discuss the importance of Accounting Information Systems (AIS). Accounting information systems are very important to make accounting processes easier and quick. Financial processing can be done very quickly and accurately with the help of computerized programs and others systems, which can process the financial data. Companies and businesses use accounting information systems to process their financial data and provide them accurate and timely financial information. Accounting information systems boost up the flow of information in every department within the organization. These systems requires information to be inserted manually into the system for different part of this process system. AIS also determines the flow of processing financial data in every department. Accounting information system generates reports by its automate report generation tools. Reports are very important source of information when the management want to see accurate and timely information for future decision making. These systems gets the data from centralized database, process it and convert it to information and generate reports which is used by the managers, supervisors and business or decision makers. Accounting information systems provides tools to conciliate financial data and reports so there are very less chances of error because it records the financial information in one set of accounts. Accounting information systems are very important in recording financial data because most companies keeps its data of sales, expenses and profits. This data is used in the futures of generating reports and comparing the results with the pervious performances and this financial data is also kept for many years on computer or papers files which will be used for audit and legal issues which is very important for the survival for the business. Accounting information systems helps companies and businesses to process the financial data and save it for future use and provides them better chances of success and survivals. Accounting information systems tools provides great user interface which helps businesses and companies to record transactions and process them very smoothly. These systems saves money and time of companies and businesses. These systems saves money because all the tasks like payroll, expense, reports and other financial matter can be completed by the owner or any other person who can use the computer and save all the information and reports for future use so no need to take paperwork and other material to accountants for payroll or tax purposes.
Task 2: Research the factors to influence the success of an Accounting Information Systems AIS development and discuss them.
Some of the factors that influence the success of an accounting system are good communication with stakeholders, properly defined software requirements, good technical design, very good standards of security and successful test of the new system.
* Good Communication: communication in the organization and outside needs to be both ways for efficient flow of duties. Communication need to take place in order for the organization to achieve its...