Role of Accounting Information System in Enhancing Business Processes

ACCOUNTING INFORMATION SYSTEM
Student’s Name
Course Studied
Accounting Information System
Course Code
Professor’s Name
Institutional Affiliation
Department
Date

Accounting Information System
Introduction
With the current globalization, competition is at the peak both in the local market and
internationally. Therefore, its fundamental for different companies to update their operations to
comply with the current innovations and technology, so us to move with the same pace as the
advancing technology for competitive advantage. It is the work of the managers in organizations
to initiate programs aimed at analyzing business operations and articulating them to point out
areas of weaknesses and apply the relevant technology for development. This essay focusses
primarily on the role of accounting information system in promoting company operations.
Accounting information system, in this case, involves communication with information
technology professionals, information system user groups and stakeholders. For a clear
understanding of the concepts brought forth, this report made use of GAAM company as a case
in which the business operations are evaluated, and the application of accounting information
system for development is displayed. Therefore, this essay has been set primarily to analyze and
articulate business operations in GAAM company and suggest the application of accounting
information system in enhancing business processes.
Purpose
This analysis was triggered by our realization of the stiff competition in the local and
international market. The fact remains that failure to adjust business operations as per the
changing technological environment may hinder the achievement of organizational goals and
objectives. The application of the accounting information system in business operations is one of
the technologies that have displayed significant importance in enhancing competitiveness in
different firm across the globe. This report, therefore, purposes at enhancing the competitiveness

of the GAAM company by proposing various recommendations in reengineering business
operations through the implementation of the accounting information system.
The participants, Inputs and Outputs of the Current System
There are many people playing significant roles in the GAAM. A typical example of such
individuals includes those in the purchasing department, i.e. one manager, one secretary and two
buyers. Other participants include casual workers, assistant managers, supply chain managers,
quality control personnel, finance personnel, and auditors.
Some of the inputs used in maintenance, repair and operating devices include hydraulic
pump inventory such as all the equipment that require tooling, equipment used in pouring
casting, and supplemental materials like foundry sand. Other inputs include gloves, oil, safety
equipment, lubricants and cleaning equipment (Murray, 2017). On the other hand, the outputs
produced by the company include control valves, gear pumps, telescopic cylinders and motors.
Activity Flow
GAAM is composed of many departments like the purchasing department. Activity flow
begins with the purchasing department which receives requests from 36 different personnel in
the firm. Usually, the requests can be in the form of purchase requisition or MRO cards. MRO
cards are used in the purchase of frequently used items whereas the purchase requisition is used
for new items. Purchasing process has limitations whereby purchases over AU$1000 are
endorsed by an individual higher in the rank of the purchasing authority. Ones the purchase
requisition is received by the purchasing department, its reviewed, a requisition form filled and
signed before it's sent back by the MRO buyer to the individuals who made the request. The
MRO buyer, in this case, is also responsible for providing the AP/O of the products being
purchased. Otherwise, if the purchase is made via the MRO card, the card must be sent back to

the department after approval. However, the delivery system of the cards and purchase
requisition forms is manual just like for inventory.
Exceptions
There are some exceptions in the business process of the company. For instance, if the
requisition exceeds the AU$1000, the card/requisition form must be endorsed by an individual
with a higher rank in the purchasing authority due to the chain of command within the firm.
Additionally, suppose an item is purchased by someone else rather than the MRO buyer due to
an emergency, the department will require a different purchasing number from the one purchased
earlier used in the normal P/O. After the number is obtained, the purchase can then be made.