ACCT 300 - Accounting Information Systems, Literature Review

[ACCOUNTING
INFORMATION
SYSTEMS]
[Type the abstract of the document here. The abstract is typically a short
summary of the contents of the document. Type the abstract of the document
here. The abstract is typically a short summary of the contents of the document.]
2017
MEEN & SURI Corp
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Part – 1
Introduction
Prior to the introduction of accounting information systems, every organization was required to
maintain their records or data whether on a group of computers or manually. It was earlier really
difficult and time consuming to verify and to find any data that is recorded in these computers or
files prepared manually (bhonsle, 2013).There was a need for change in this field of data
recording. With the invention of accounting information systems, the recording of data on
computer systems and manually was replaced by these software accounting systems. The main
purpose of these accounting software’s is to store, record and classify the data entered into them
and provide this useful information with a click of the mouse. Now almost every other firm uses
such software’s for the ease of their employees. The entry of accounting information systems has
put an end on the manual recording of data in small, medium and large scale firms (Girri,
2001). There are different accounting systems (software’s) available in the market as per the
needs of each firm. Accounting software can be prepared by third parties or the firm can prepare
itself or they can prepare it together with a third party, that’s why some of accounting
information systems are called tailor made accounting software’s (Singhania, 2005).
Literature Review
Earlier companies use to record, analyze, classify and compare data manually or on computers
that do not have any common servers. Accounting information systems are cloud based storage
systems that stores the information of an organization and provide it according to the need of
hour (carl, 2000). It has become really easy with the introduction of these software’s, now if
something is to be compared, on a click the employees gets information from such software’s
this not only saves their time but also provides with accurate and appropriate results (Arey,
2013). We will now talk about MEEN & SURI Corp, an Australian firm that’s deal in washing
machines and other household goods. This firm follows a line organizational structure and has
opted accounting information system into their working. MEEN & SURI is a medium scale
company and has a vast area of operations. MYOB is the current accounting information system
that is used by MEEN & SURI. There are many accounting information systems but below
mentioned are few that are on top 3 in Australia.
 MYOB
 Quick-Books
 Reckon-One

MYOB: was introduced by an Australian firm and its introducer is Christopher Lee. It is an
invention of early 2000’s. MYOB enjoys the cap of 360000+ active users in the Australian and
international market (messy, 2011). The full form of MYOB is Mind Your Own Business. It is
a cloud data storage system that provides it users services related to taxation, recording and
analyzing of data, comparison and other accounting services.
Quick-Books: Another accounting information system introduced by an Australian firm is
Quick-books, the founder of this AIS was intuit. This software offers services to small or
medium size Organization (Misty, 2008).
Reckon-One: Reckon is not that much popular, if it is compared with that of MYOB & Quick-
books. It is mostly used by small scale firms and it enjoys a market cap of 120000 active users. It
provides services related to payroll etc (Milo, 2015).
Coming back to MEEN & SURI Corp, this Australian firm is using MYOB accounting software
into their working. The reason why they use MYOB rather than Quick-books or Reckon-One is
because of its range of benefits that are given below:
 Accuracy: One of the main benefits that are provided by MYOB is its accuracy. A firm
will only opt an accounting information system that will provide its management with
accurate results. There is no point in having large AIS if the results given by it are not
accurate.
 Speed& Safety: MYOB is considered to be the one of the fastest Accounting information
system that provides accurate results with a fastest speed along with its speed, it is also
known for its safety features. There will be less chances of stealing, theft or leaking of
confidential data secured with MYOB.
 Ease of use: MYOB is one of the most easily used or we can say it is easily accessible; it
doesn’t need much of expertise to use it. It is the most competent accounting information
system that is prevalent in Australia and New Zealand (kunal, 2007).
Now we will talk about the organizational structure that MEEN & SURI Corp follows, they
follow line organizational structure, in this type of structure there is usually one head (Managing
Director or Director) and he is followed by other sub heads (mehta, 2008). This structure is
also known as military form of Organizational structure. Most of the self made organization
follows this kind of structure. Below is a diagram that will help to understand Line
organizational structure easily: