Accounting Information System: Overview, Examples, Challenges and Benefits

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

1
ACCOUNTING INFORMATION SYSTEM
Table of Contents
1. Introduction......................................................................................................................2
2. Use of Accounting Information System: Overview with two examples.........................2
3. Description of AIS used: Challenges and Benefits..........................................................3
3.1. Decision Support System..........................................................................................3
3.2. Transaction procession system.................................................................................4
4. Recommendation.............................................................................................................6
5. Conclusion.......................................................................................................................7
References............................................................................................................................8

2
ACCOUNTING INFORMATION SYSTEM
1. Introduction
Accounting information system is a software system that is used by business
organizations for collecting, managing, storing and data processing. This data is mainly used by
the consultants, business analyst, accountants and business managers for efficient decision
making. The aim of the report is to analyze the use of accounting information system (AIS) in
business (Lim 2013). AIS can be put to use for innovation in business. The report will be
evaluating the use of AIS with two examples and will further discuss the impacts of certain
internal and external factors of AIS enabled innovation.
2. Use of Accounting Information System: Overview with two examples
Accounting information system can rightly be used for business innovation. Innovation is
seen to positively affect the capability of the firm in competing successfully in a global market.
Innovation increases the productivity and efficiency of the company. Innovation is the success
actor of increase in use of accounting information system in business.
One example associated with the use of AIS in innovation includes changes in business
reality. Accounting information systems have allowed the businesses to have an integrated
system that enabled the managers in easier decision making. The use of AIS has driven a change
in collection, measurement, analysis and communication of the information associated with the
organization thus driving the business innovation (Laudon and Laudon 2015). This type of
accounting information system is known as decision support system. Accurate business
decisions can be taken with the implementation of AIS which is a significant advantage as well.
Thus the use of accounting information system helps in business innovation and therefore the use
of accounting information system has been increasing ever since.
Another example of use of AIS in business innovation includes performance management
in organization. With the help of AIS, performance measurement of various business operations
associated with the business organization is possible (Simkin, Norman and Rose 2014). One of
the most common uses of AIS is generation of financial statements that helps in easier business
review. The reports generated by the accounting information systems along with the financial
statements that are generated by the accounting information system act as leading indicators for
comparison with the other companies. This helps the organization in keeping up with the