Accounting Information System Free Essay Example

money on accounting reduces business costs. Cloud accounting is considered the future of accounting due to its advanced features and real-time changes that show immediate results, minimizing the occurrence of mistakes.

Although cloud accounting is highly efficient, its security remains a concern. Poor software security can lead to easy hacking and potential loss of data. To mitigate this risk, data should be regularly backed up until the security of the cloud accounting software has been thoroughly tested and proven. In addition to efficiency and security, IT enhances accounting functions through communication capabilities.The communication of data to the appropriate person in the correct format can be facilitated through the use of IT systems. In the past, graphs and diagrams had to be created manually, but now even simple software like Microsoft Excel or Microsoft Access can efficiently and legibly generate these visuals. Access can also be utilized for tracking invoices, reviewing accounts receivable, and managing company finances. Additionally, Access can be employed for classifying accounting data, which is typically done in a ledger. This software allows accountants to group similar data, reducing paper consumption and simplifying the relationship between components. However, accountants would need training to ensure efficient usage and implementation of the software, which could come with an initial cost. Despite this, using computer-based software is more convenient for creating graphs and diagrams to explain data compared to manual methods. Overall, computers have made it possible to perform accounting activities that were previously done manually (l.Dalasi &V. N. Tania, 2011, pop).Using a computerized system for accounting tasks can save businesses significant time and resources compared to manual processes. Various software options are available for accountants to

generate statements and reports, eliminating the need for handwritten documents. Additionally, computerized systems can facilitate payments and transfers directly through the bank, allowing for efficient transactions without physical visits to the bank. These technological advancements enhance accounting functions, but businesses must implement precautionary measures to ensure system security and protect against hacking or data loss. Regular password updates are recommended to make it more challenging for hackers to access the system. Offsite archiving is another effective security measure, enabling the retrieval of stolen or corrupted data from an external source. This preventive approach safeguards data and ensures its safety.Finally, another satisfactory way to ensure the security of a system is through the encryption of data. Encrypting data involves translating it into a hidden and secret code, which remains undetectable to outside users and challenging to decrypt without knowledge of the secret code. However, decrypting would require the expertise of a professional computer engineer. Although the initial cost of implementing encryption measures may be high, its value in preventing security breaches is significant.

In conclusion, it is evident that computerized accounting offers numerous advantages compared to manual accounting. Computerized accounting guarantees efficiency and effectiveness while reducing the time spent on paperwork. On the other hand, manual accounting has the advantage of not being dependent on machines.

However, computerized accounting does face a major disadvantage in terms of potential unauthorized infiltration. Breaching the system could result in the loss of crucial data, making this a serious concern. In contrast, manual accounting is simply laborious, time-consuming, and not cost-effective due to the excessive amount of paperwork.

Despite the fact that computerized accounting can be vulnerable to security risks like viruses, hacking,

and theft, these risks can be mitigated by implementing key security measures.I have a strong belief that computerized accounting proves to be the most effective and efficient method due to its implementation of regular password changes, offside archiving, and backup facilities. Consequently, I also advocate for the integration of telecommunications and computerized systems to enhance accounting functions. Particularly for global businesses, this can bring about even greater benefits as it allows them to operate seamlessly across different locations worldwide.