Accounting Information Systems

This document provides an overview of accounting information systems (AIS), including their components, functionality, and software selection. It discusses the benefits and challenges of using cloud computing in accounting and provides insights into popular accounting software like Xero and SAP. The document also emphasizes the importance of data security and proper maintenance in AIS.

Running Head: - ACCOUNTING INFORMATION SYSTEMS
ACCOUNTING INFORMATION SYSTEMS
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Executive Summary
Accounting system is a plan structure use for the business process that helps in
collecting, storing and managing of the data which helps in the decision making
process. The AIS consists of different elements that are related to the infrastructure,
data and software related to the systems. The AIS helps in the smooth running of the
business process. It also helps in the operating systems of the business process.
The AIS helps in encryption process of the data and helps in accessing of the
system. The system activity is traceable and helps in improving the systems. The
data of the system can be destroyed if the systems are outdated.

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Table of Contents
Introduction...................................................................................................................3
Background...................................................................................................................3
System Requirement....................................................................................................4
Software Features.....................................................................................................5
Functionality..............................................................................................................6
Software Selection........................................................................................................6
Comparison...............................................................................................................7
Suitable Vendor.........................................................................................................8
Conclusion....................................................................................................................8
References.................................................................................................................10

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Introduction
Information System is a process which is formal used to collect the data,
process the data into various information and the information are distributed to the
users. The main aim of the accounting information system is to gather, store, and to
process all the financial and account related data. It also helps in producing the
informational reports and it helps the managers in making the business decisions.
Accounting information system is based on a manual system. The entire system is
based on the computer system (Ismail and King 2014). The AIS helps in the
collection and storage of all the data in a much efficient and effective way. All the
transaction related information are collected. It also helps in supplying all the
important and useful information which helps in making the decision and helps in
producing the statistical reports. It also checks whether all the process is done and
recorded properly and are under control. An accounting systems consists of different
parts. The different parts are the people who utilize the system, the methods and
instructions related to the systems, all the data related, the software, the
infrastructure of the information technology and the security methods required for the
protection of the system. The report discusses about the various process, the
software, the comparison and the best vendor with suitable examples related to the
accounting information systems.
Background
The cloud technology is one of the extremely popular used in various
business activities. The cloud technology is one of the new business model. It offers
new and attractive opportunities for the business process. With the help of the cloud
computing all the information can be stored and shared with the help of the

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information system. There are certain important characteristics related to the cloud
computing. The characteristics are the on demand self-service, access to all the
permanent network, it also reduces the cost of the overall information technology
infrastructure. The cloud computing comprises of various potential that helps in the
effective and efficient business process. The cloud computing will help in gaining the
market reputation and helps in more competitive field. It also helps in the business
process and its decision making process (Belfo and Trigo 2013). The cloud
computing system offers different opportunities like the flexibility, efficiency, improves
the connectivity and makes the administration easy. The process is upgraded and
helps in the expansion of the function of the business process. However, the
business process and the cloud computing comprises of different types of problems.
The important business process consists of different steps and improves the
business process. It also offers flexibility to the work process and speeds up the
business process. Cloud computing helps in the secure storage of the information.
System Requirement
In the recent years all the companies and organization are using and
implementing cloud computing in their business process. The cloud computing
comprises of both the hardware and the software components. There are certain key
requirements in which the entire system depends. The system follows certain key
strategies to complete the works. There are different types of cloud computing. The
cloud computing is based on the software service, platform service and related with
the infrastructure. The main concern is that all the data are kept secured and are not
lost. The software comprises of different types of level that helps in the protection of
the business information. The use of the cloud based accounting software is
increasing rapidly as it provides number of benefits. With the help of the cloud based

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accounting software all the solution related to the system are limited and based on
hardware (Worrell, Wasko and Johnston, 2013). The software mostly depends on
the storage and the requirement of the business process. However, the software
comprises of sensitive data related to the finance. The software requires the
combination of different process that can help in securing the data it comprises of the
authentication process, process of encryption and various authorization. The
software is suitable for the business which keeps its operation lean. With the help of
the software the daily expense and income can be easily maintained.
Software Features
The features of the software related to accounting to software completely
varies from vendor to vendor. All the system comprises of different basic features.
Some of the software just provide basic features that helps in working process of the
business related to the finance. The software need to handle certain tasks that can
be performed manually but with the help of the software it can be done more
accurately. The software need to help in the enterprise related planning (Rainer et
al., 2013). The software need to provide certain real time based finance related
problems. The software need to handle all the business related process
automatically without any errors. The software must be upgraded so that the
business process is updated. The software needs certain basic features that are
related to the subscription billing, related to the client management, the task related
management, providing of the invoice templates, finance related management,
expense management, tracking of the products and providing online invoicing. The
software need to have the quality of reporting, analysis, graphics, automation,
customization, scalability, expendability and security. However, the main feature of
the accounting software that it manages the account related problems and gives a

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standard result. It will also provide benefits related to access and managing of the
systems. The software need to be time consuming and cost effective for the
business process. The function of the software is that it helps in maintaining the
backup of the data and helps in the recovery of the data.
Functionality
The accounting software need to be with good features so that it can lead to
the success of the business. The software should have the functionality of providing
good representation and so that it can analyse and represent the profit and loss
statement. The software need to have remote access. The software should have
broad network access so that the all the accounting is done in a well processed
manner. The software comprises of the automatic backup facilities and keeps all the
accounting related files secure. The software helps in serving large customers that
can help in making the financial account. The software is based on the self-service.
The software helps in providing the detail service related to the accounting software.
The software helps in identifying the capability related to the business (Mancini,
Vaassen and Dameri, 2013). The software comprises of the function that helps in the
installation and maintenance of the software. The software helps in maintaining all
the service related to the accounting software. The software provides service that
helps in maintaining the large network service. The software provides the storage
that is related to the servers. The software provide functionality that helps in reduces
the management effort and increases the interaction between the different service
providers. The software must have the file sharing capability and provides the related
statement of the organization related to profit and loss of the organization.

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Software Selection
Accounting is not a simple task and is one of the main requirement related to
the business process. The software must be based on complete methods related to
accounting and should provide platform for the invoicing. Several number of
accounting products and software are present that helps in the accounting related to
the business organization. With the help of the software all, the accounting related to
the business is done at a much convenient way (Maim and Oluić, 2013). Several
software helps in improving the business the software like Xero and Sap provides
platform for doing the accounting related work. With the help of the Xero software,
the business owners are able to view and manage the financial data, which is based
on the financial data. The software can be used in any device and helps in tracking
and managing the cash flow and account related details. The main feature of the
software that it helps in the management of the employee related expense and
realize all the revenue recognition. The software SAP is also used in the accounting
purpose. It helps in maintaining the entire track related to the business interactions
and the finance. The software also helps in tracking the customers related order and
help in the business interaction process. The software also helps in the data
management of the business process.
Comparison
Xero is a successful technology that helps in the accounting based work of
the business organization. There are certain features of the Xero that it helps in the
payments related to the account it helps in providing the bills and invoice related to
the business, helps in providing budget and helps in purchasing orders. Xero is
beneficial for the business organization that is based on small scale and is a non-
profit organization. However, the SAP is based and beneficial for large companies.

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However, SAP provides models related to the business intelligence and human
resource. Xero software is user friendly and easy to use the entire set up provided by
the vendor of the XERO is much easy. The quality of service and support provided
by the SAP vendor is better than that of the XERO vendor. Xero is best for the small
business and SAP is best for the large enterprise. The XERO is based on the
computer software and is used for the purpose of marketing, accounting and
advertising (Schaltegger and Burritt, 2017). SAP is one of the best platform that
helps in putting all the data together based on all the operation of the business
process. With the help of the SAP all, the data can be accessed easily.
Suitable Vendor
SAP is one of the accounting related software that is easy to use and
designed to provide small business service. Number of vendors are present that
helps in the business process. The vendor helps in the process of core accounting
and helps in the company process. The benefit provided by the vendor makes the
business process much easy and helps in improving the profit related to the
organization. The SAP vendor provide quality service and the package of the
software is comparatively less with respect to other software vendors (Bhimani and
Willcocks, 2014). The vendor also allows certain additional features with the use of
the SAP software. The software provides features such as payroll, accounts related
to payable and receivable process. The software vendor provides easy installation
and helps in maintaining the quality of the service. The method of the transaction
provided by the SAP vendor is much easy and convenient. The vendor provides
authorized access to the software and provide feature that is based on two-step
authentication method. The database is well maintained by the vendor and all the
data re ensured to be maintained securely.

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Conclusion
The Accounting information system comprises of both advantages and
disadvantages. The system comprises of confidential data that can be unprotected
and need protection. The use of the system need to be done in an authorized
manner so that the data are not misused. With the system there are benefits which
are organizational as well helps in improving the business process. The main priority
of the system is related to its security and proper maintenance. The loss of
information will lead to the destruction of the business organization. Accounting
information system helps in combining the study as well as the practice related to the
accounting that brings the concept of designing, implementation, controlling and
monitoring of the related information systems. It also consists of the financial system
that helps in improving and managing the financial related performance of the
business organization. It also gives a critical thinking approach towards the
organization goals. However, it can be concluded that the accounting system is an
integrate system. It stabilizes the business process and improves the financial
activity. The information system helps in considering both the security and the risk
that the company might face. Moreover, it helps in the identification of the risk in
different ways.

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References
Belfo, F. and Trigo, A., 2013. Accounting information systems: Tradition and future
directions. Procedia Technology, 9, pp.536-546.
Bhimani, A. and Willcocks, L., 2014. Digitisation,‘Big Data’and the transformation of
accounting information. Accounting and Business Research, 44(4), pp.469-490.
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.
Mamić Sačer, I. and Oluić, A., 2013. Information technology and accounting
information systems’ quality in Croatian middle and large companies. Journal of
information and organizational sciences, 37(2), pp.117-126.
Mancini, D., Vaassen, E.H. and Dameri, R.P., 2013. Accounting information systems
for decision making. Springer.
Rainer, R.K., Cegielski, C.G., Splettstoesser-Hogeterp, I. and Sanchez-Rodriguez,
C., 2013. Introduction to information systems. John Wiley & Sons.
Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting:
issues, concepts and practice. Routledge.
Worrell, J., Wasko, M. and Johnston, A., 2013. Social network analysis in accounting
information systems research. International Journal of Accounting Information
Systems, 14(2), pp.127-137.