Accounting Information System

This report discusses the use of AIS for innovation in organizations, with examples of SAP in Tesla and XERO in Commonwealth Bank. Factors affecting AIS, including internal and external factors, are also discussed. Recommendations for implementation are provided.

Running head: ACCOUNTING INFORMATION SYSTEM
Accounting Information System
Name of the Student
Name of the University
Author’s Note

2
ACCOUNTING INFORMATION SYSTEM
Table of Contents
Introduction......................................................................................................................................3
Overview of use of AIS for innovation...........................................................................................3
Factors affecting AIS in organizations............................................................................................4
Recommendations............................................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

3
ACCOUNTING INFORMATION SYSTEM
Introduction
Technology has been helping in the growth of various organizations in the market. The
implementation of technology in the accounting information system have been beneficial for the
development of companies. Companies used to invest huge amount of money in these tools for
development of their operational methods. Accounting has been providing solutions to different
challenges including trade, competitors, business agreements and fiscal issues.
This report deals with two examples of use of AIS for innovation. Various factors
including external and internal factors have been discussed in the report. Various challenges and
benefits of the AIS have been discussed in the report.
Overview of use of AIS for innovation
The alignment of technology and accounting information system has been responsible for
providing enhancement in the business processes and accounting systems. Innovation in the
accounting systems have been enabled. Various IT professionals have been pursuing various
accounting tools (Prasad and Green 2015). Two examples have been discussed in the report
including SAP in Tesla and XERO in Commonwealth Bank. These two multinational companies
have been successfully implemented AIS for innovation in their organizational performance. In
the case of Tesla, SAP has been useful in maintaining the accounting systems of the company.
Tesla has been facing several problems in the management of accounting systems (Laudon and
Laudon 2016). The billing systems o the Tesla Motors have been ruptured due to insecure
accounting systems. The failure in the accounting systems have led to implementation of SAP
accounting software in the company. The performance management has been enhanced by the
integration of the technology in the accounting software. The use of the technology has been

4
ACCOUNTING INFORMATION SYSTEM
helping in maintaining a keen approach to the dependency of finance in the company (Simkin,
Norman and Rose 2014). SAP has helped in providing extra benefit to the company in order to
maintain a cloud approach to store financial details of the company. A backup sector has been
stored over the cloud.
In case of Commonwealth Bank, Xero and MYOB have been used as an accounting
software (Alewine, Allport and Shen 2016). However, both of these tools are cloud-based
software. MYOB and Xero help in undertaking various accounting problems related to balance
sheet, cost benefit analysis and revenue recognition. Xero has been helping providing inventory
control, cost tracking and purchase order management of the company. The deployment of both
software have been done using SaaS and other web technologies.
Factors affecting AIS in organizations
Accounting information system have been helping organizations in various ways
including increasing their performance in the market. The use of accounting software have been
helping in maintaining the financial documents of the company. SAP and Xero have been
maintaining a beneficial aspect in the growth and innovation of the comiany. There are both
external and internal factors responsible for implementation of accounting information system.
Internal factors include organizational, individual and management factors (Teittinen and
Granlund 2017). Organization needs to focus on its performance and goal. The achievement of
goals and objectives have been an important factor for the development of the company.
Organizational factors have been including organizational culture, HR policies and personal
issues. The use of the accounting software have been managed under the HR policies of both of
the companies in the market. The use of the Xero have been helping in providing updates about
new technology in the market.

5
ACCOUNTING INFORMATION SYSTEM
The use of the software been covered by most of the banks and financial institutions
(Fitriati and Mulyani 2015). Xero is one of most robust and flexible accounting software used in
the companies. However, Xero software has been accountable to the professionals and easy to
use for them. The performance management has been enhanced by the integration of the
technology in the accounting software. The use of the technology has been helping in
maintaining a keen approach to the dependency of finance in the company (Collier 2015). The
use of the software has been helping in understanding critical calculations in the accounting
systems. Xero has been helping in maintaining a keen an approach to the accounting problems in
the company.
Individual factors have been affecting the implementation of accounting software in these
companies. According to the reports, employees at Tesla Motors have credited SAP as a failure.
Therefore, the management of the company have tried to allocate special professionals to
adequate importance of the SAP in the company. Several employees have been facing problems
due to the implementation of the SAP accounting software in the company (Schaltegger and
Burritt 2017). The lack of awareness among employees of the company have been the main
reason for the failure of the SAP accounting software in Tesla. Personal factors have been
creating major impact in the implementation of the accounting software in organizations.
The external factors including market, industry, economic, social, technological and
political factors have been affecting the implementation of accounting information systems for
innovations (Mirzaey, Jamshidi and Hojatpour 2017). The market size of the accounting software
has been large in most of the countries. There are millions of accountants and professionals all
over the world using accounting software using SAP, MYOB and Xero. SAP has helped in
providing extra benefit to the company in order to maintain a cloud approach to store financial

6
ACCOUNTING INFORMATION SYSTEM
details of the company. A backup sector has been stored over the cloud. These two companies
have been benefited by use of the accounting software. The popularity of accounting software
have been increased with their beneficial financial decisions and acceptable financial decisions
(Abduljalil and Zainuddin 2015). Multinational companies have been dominating the market due
to use of the accounting software in their operations. The market leaders have been supporting
the implementation of accounting software in the companies. Most of the companies have been
using the cloud computing in their operations that have been helping in maintaining the
importance of accounting software. Various strategies alliances have been identified with the
implementation of the accounting software in the companies.
The technological advancement has been main reason for the implementation of
accounting software in the companies. The involvement of information technology has been an
important goal of the companies in order to fulfill goals and objectives (Dandago and Rufai
2014). The technical advances in accounting software have been helping in mitigating bugs and
issues in the accounting software including SAP, MYOB and Xero. Technical advancement has
been helping in minimizing cost of products and services provided by the companies. Both of
them have been helping in providing in innovative measures for detecting issues in the
accounting systems and recover them properly. The Bank has been one of the largest banks in
the country. Therefore, there have been huge amount of financial transaction on the bank. The
programmer developed this software from basic structure that help businesses to take decision
and increase profitability of the organization (Susanto 2018). These software help in integrating
their operations in order to maintain an innovative approach towards the development of the
company. The use of software has helped in providing a keen approach to the development of the

7
ACCOUNTING INFORMATION SYSTEM
company. The bank has purchased this software as they does not develop its financial
application.
The economy of the countries have been a great factor for the implementation of the
accounting software in the companies. The costing of the accounting software has been high fir
the companies. Therefore, many small companies are not able to buy the licenses of accounting
software. These software have been used by most of the big companies including Tesla and
Commonwealth Bank in Australia (Zakaria, Ilias and Wahab 2017). There have been various
disadvantages of accounting information system including management issues related to the
implementation and use of the accounting information systems in the company.
The use of the software have been unknown to the employees that might create loss to the
company. The licensing cost of the software has been high and if there is no profit from it, it will
be a loss to the company. Therefore, the use of accounting software needs to be acknowledged
by the professionals. The relationship between employees and company might get hampered in
this condition (Dewi et al. 2018). Tesla motors have been facing same problem in their
operations and management. Both of them have been helping in providing in innovative
measures for detecting issues in the accounting systems and recover them properly. The Bank
has been one of the largest banks in the country. Therefore, there have been huge amount of
financial transaction on the bank. Profits of the company have been decreased sue to the high
initial cost of the software and systems implementation. Problems in the AIS have been
transformed into several varieties in order to maintain a keen approach towards development of
the company (Maskell, Baggaley and Grasso 2016). The programmer developed this software
from basic structure that help businesses to take decision and increase profitability of the
organization. These software help in integrating their operations in order to maintain an

8
ACCOUNTING INFORMATION SYSTEM
innovative approach towards the development of the company. The design of the AIS have been
depended in the organizational structure of the company.
Recommendations
Both the companies including Tesla Motors and Commonwealth Bank have been using
SAP and Xero respectively as their accounting information system. However, there have been
some problems in the implementation of the accounting information system in the companies.
This problems can be removed in the company. There have been various strategies used in the
accounting information system. Various SAP Financial modules might help in maintaining a
proper approach in the developer of the company in the market. Training and development
sessions regarding the AIS need ti be provided to the employees in order to maintain a keen
approach to the development of company. Training of employees help in providing knowledge
about the accounting information system. Motivating employees for the use of AIS might help in
increasing the confidence for using it. High level training and education need to be provided to
the employees of the company. In addition to that, further studies on benefits and impact of AIS
in organizations. Government needs to be aware and support accounting information system in
the country. Political support is necessary for increasing awareness related to the AIS.
Government needs to be active towards its implementation and provide suitable environment for
training and computer devices. The training package needs to be at low cost so that ore number
of employees can take participation in the session. The speaker needs to be professional to make
them understand about the impact and benefits of AIS over the business.

9
ACCOUNTING INFORMATION SYSTEM
Conclusion
It can be concluded that the accomplishment of objectives and targets have been an
imperative factor for the advancement of the organization. Authoritative variables have been
including hierarchical culture, HR arrangements and individual issues. The utilization of the
bookkeeping programming have been overseen under the HR strategies of both of the
organizations in the market. The utilization of the Xero have been helping in giving updates
about new innovation in the market. The utilization of the product been secured by the vast
majority of the banks and money related organizations. There have been different impediments
of bookkeeping data framework including administration issues identified with the usage and
utilization of the bookkeeping data frameworks in the organization. The utilization of the product
have been obscure to the representatives that may make misfortune to the organization. The
authorizing expense of the product has been high and if there is no benefit from it, it will be a
misfortune to the organization. Hence, the utilization of bookkeeping programming should be
recognized by the experts. The connection among workers and friends may get hampered in this
condition.

10
ACCOUNTING INFORMATION SYSTEM
References
Abduljalil, K. and Zainuddin, Y., 2015. Intrinsic and extrinsic motivation as attitude factors
towards adoption of accounting information system (AIS) in Libyan SMEs. International
Journal of Academic Research in Accounting, Finance and Management Sciences, 5(1), pp.161-
170.
Adenike, A. and Michael, A., 2016. Effect of Accounting Information System Adoption on
Accounting Activities in Manufacturing Industries in Nigeria.
Alewine, H.C., Allport, C.D. and Shen, W.C.M., 2016. How measurement framing and
accounting information system evaluation mode influence environmental performance
judgments. International Journal of Accounting Information Systems, 23, pp.28-44.
Amin, M.K., Munira, S., Azhar, A., Amin, A. and Karim, M.T., 2016, December. Factors
affecting employees' behavioral intention to adopt accounting information system (AIS) in
Bangladesh. In Computer and Information Technology (ICCIT), 2016 19th International
Conference on (pp. 501-505). IEEE.
Collier, P.M., 2015. Accounting for managers: Interpreting accounting information for decision
making. John Wiley & Sons.
Dandago, K.I. and Rufai, A.S., 2014. Information technology and accounting information system
in the Nigerian banking industry. Asian Economic and Financial Review, 4(5), pp.655-670.
Dewi, I.G.A.A.O., Dewi, I.G.A.A.P., Kustina, K.T. and Prena, G.D., 2018. Culture of tri hita
karana on ease of use perception and use of accounting information system. International
Journal of Social Sciences and Humanities (IJSSH), 2(2), pp.77-86.

11
ACCOUNTING INFORMATION SYSTEM
Fitriati, A. and Mulyani, S., 2015. Factors that affect accounting information system success and
its implication on accounting information quality. Asian Journal of Information
Technology, 14(5), pp.154-161.
Ismail, N.A. and King, M., 2014. Factors influencing the alignment of accounting information
systems in small and medium sized Malaysian manufacturing firms. Journal of Information
Systems and Small Business, 1(1-2), pp.1-20.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
Maskell, B.H., Baggaley, B. and Grasso, L., 2016. Practical lean accounting: a proven system
for measuring and managing the lean enterprise. Productivity Press.
Mirzaey, M., Jamshidi, M.B. and Hojatpour, Y., 2017. Applications of artificial neural networks
in information system of management accounting. International Journal of Mechatronics,
Electrical and Computer Technology, 7, pp.3523-3530.
Prasad, A. and Green, P., 2015. Organizational competencies and dynamic accounting
information system capability: impact on AIS processes and firm performance. Journal of
Information Systems, 29(3), pp.123-149.
Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues, concepts
and practice. Routledge.
Simkin, M.G., Norman, C.S. and Rose, J.M., 2014. Core concepts of accounting information
systems. John Wiley & Sons.

12
ACCOUNTING INFORMATION SYSTEM
Susanto, A., 2017. Empirical Testing of the Quality of Accounting Information Systems that are
Influenced by the Culture of the Organization Research at the Hospital in Riau-
Indonesia. Journal of Engineering and Applied Sciences, 12(12), pp.3156-3162.
Susanto, A., 2018. The influence of business process and risk management on the quality of
accounting information system. Journal of Theoretical & Applied Information
Technology, 96(9).
Teittinen, H. and Granlund, M., 2017. Accounting Information Systems and decision-making.
In The Routledge Companion to Accounting Information Systems (pp. 103-115). Routledge.
Zakaria, W.Z.W., Ilias, N. and Wahab, N., 2017. A survey on the impact of accounting
information system on tasks efficiency: Evidence from Malaysian public sector
agencies. International Review of Management and Marketing, 7(1), pp.183-190.