Accounting Information System Summary Essay Example

application and of information and communication technology in the accounting portion of the business. Sutton, 1996).AIS are vital to all businesses (Borthick and Clark, 1990) in order to collect raw data and transform it into financial data to be presented to the decision makers.

AIS and decision making in a firm. Information systems are what companies rely on to provide adequate and necessary information to make decisions. AIS are used as a tool designed to help in the controls related to organizations financial areas. There are many different types of AIS, yet there is no specific way for a company to do their accounting.As long as companies are disciplined and compile all the facts, the accounting method may vary. It is very important for companies to identify and collect meaningful information in order to make important business and financial decisions.

Advancements in information and communication technology have made decision-making processes better for management because now it is possible to improve and constantly upgrade the accounting information system. (Pierce, O'Dea. 2003) It is important for companies to reach a common ground between AIS, management, executive functions and external users.This is vital for compatibility of all functions in the company to be established. If a common ground is achieved, coherence between management and accounting information systems leads to the simplification of business and financial decisions.

What do the AIS really do? The AIS has many different functions but the most important task of the AIS is dealing with the following.-Recording monetary forms of business events-Data processing and drawing account reports- Publishing financial statements with financial communitiesIn todays business world besides the General Manager or President of a company the financial

auditor has one of the most important roles in the company. The GM handles the daily operations and decision-making procedures of the operation but the financial auditor working within the AIS is responsible for the accurate and dependable financial reporting of the company. Malinic and Todorovic (2011) believe that within a company comprised of people, equipment, software, and data; the AIS, which includes communication and network solutions that connect all elements of the organization is the most important piece.Different Sub Systems of AIS and the Advantage of this MethodThe AIS is part of a subsystem of a larger system called the business information systems. Within the BIS there are four subsystems dealing with accounting, marketing, HR, and management. The accounting subsystem is the one that we will at closer. Since the first published paper on accounting was written by Luca Paciole, (Schien, E. , Borba, J. , A. , Dal-Ri, Murcia, F. , 2007) there have been basic principals that still remain the same today. The principles are used in the implementation of the AIS.