(PDF) Impact of Accounting Information Systems
Added on 2021-04-24
69 Pages19450 Words636 Views
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Running head: RESEARCH METHODThe relationship between the role of Accounting Information Systems and firm profitabilityName of the Student: Name of the University: Author’s Note:
1RESEARCH METHODAbstract The current paper has the purpose of creating knowledge of the impact of accounting informationsystem on the profitability of the companies. The background of the paper cites that accountingis the process of recording all the transactions in the monetary values and thereafter determiningthe profit and loss of a business. The development of information technology has led to theconstruction of accounting information system and this process has improved the data processingmethod as well recording of all the transactions. The accounting information system therebyassists in the construction of quality and error free financial statements that can be used forfurther use. It is seen that the objectives of the research has addressed the aspects that would beanswered with the support of the results. The literature review explains the aspects and theelements that are linked to this topic and this is helpful in creating an idea with the help of whichfurther analysis in the current time period can be done. The methodology has explained the kindof data that is used and it is seen data with the help of interview has been collected. The analysisthat has been done explains that accounting information system has a direct and positive impacton the profitability of the companies and therefore most of the companies have been making useof this software in order to enhance their performance and profitability from the market. Theoutcome has been able to answer the objectives and therefore it is seen that the results attainedare justified. Key Words Accounting, Accounting Information System, Profit, Financial Statement, Quality, Error Free,Data Recording, Data Processing.
2RESEARCH METHODTable of ContentsChapter 1: Introduction....................................................................................................................51.1 Background of the Study.......................................................................................................71.2 Problem Statement...............................................................................................................101.3 Research Aims and Objectives............................................................................................111.4 Research Question...............................................................................................................121.5 Research Significance..........................................................................................................121.6 Research Hypothesis............................................................................................................131.7 Definition of the key terms..................................................................................................13Chapter 2: Literature Review.........................................................................................................152.1 Introduction..........................................................................................................................152.2 Accounting Information System..........................................................................................152.3 Accounting Information System and Financial Performance..............................................202.4 Accounting Information System and Performance Management........................................222.5 Qualities of Good Accounting Information System............................................................242.6 Profitability and decision making........................................................................................252.7 Relationship between accounting information system and profitability.............................262.8 Effects of Accounting Information System on Profitability................................................282.9Summary of the literature.....................................................................................................29Chapter 3: Research Methodology................................................................................................30
3RESEARCH METHOD3.1 Introduction..........................................................................................................................303.2 Justification of the selection of the methodology................................................................303.3 Research Philosophy............................................................................................................313.4 Research Approach..............................................................................................................313.5 Research Design..................................................................................................................323.6 Qualitative Data...................................................................................................................333.7 Kind of Data Used...............................................................................................................333.8 Process of data collection....................................................................................................343.9 Data Analysis Plan...............................................................................................................343.10 Ethical Consideration.........................................................................................................34Chapter 4: Data Analysis and Discussion......................................................................................354.1 Introduction..........................................................................................................................354.2 Interview Analysis...............................................................................................................354.3 Discussion............................................................................................................................434.4 Thematic Analysis...............................................................................................................444.4.1 Effects of Accounting Information on Profitability......................................................444.5 Summary of the results........................................................................................................45Chapter 5: Conclusion, Recommendation and Future Work.........................................................465.1 Conclusion...........................................................................................................................465.2 Addressing the objectives....................................................................................................47
4RESEARCH METHOD5.3 Recommendation.................................................................................................................495.4 Future Work.........................................................................................................................49Reference List................................................................................................................................51Bibliography..................................................................................................................................60Appendix........................................................................................................................................67Interview Questions...................................................................................................................67
5RESEARCH METHODChapter 1: IntroductionAll the companies that are looking to attain their strategic aims and objectives is anefficient and effectual one in order to attain the key objective of any firm. This is known to bethe development and the profitability and thereby able to optimise the market value and enhancethe revenue of the owners and the several other processes. This may lead to enhancedperformance and enhancement in their profits within the age that is featured by the technologicaladvancement and competition. This assists in gaining knowledge in order to have anunderstanding with the help of which better decision making process with the help of effectivedata could be utilised (Libby 2017). The attractiveness towards this process has a precise effect on the financial performanceof the firms in addition to the rise in the interest in the participation of the professionalaccountants in the different phases of the development is in accordance to the accountinginformation system. It is done for the ones who have been participating from the effect of a clearand positive on the success in relation to the performance of the system (Chenhall and Moers2015). This assists the managers to undertake decisions and construct strategies and theassessment and that the contemporary firms cannot sustain their activities without the availabilityof the accounting information systems and distinctively computerise them. This has been therole in enhancing the significance of these processes within the business enterprise. Conversely, it is seen that the companies need to pay for their financial expenses and theefforts towards a huge amount of investment. This is done in order to establish a computerisedaccounting process, the computers are in need of software and hardware and even need skilledpersonnel, which satisfies the companies to attain these systems. The attainment of these systems
6RESEARCH METHODare done by sacrificing other resources in order to have an effect on the usage of the accountinginformation process and the computerised financial performance and attain them simultaneously.This assists the companies to gather investment opportunities for the utilisation of theseresources and thereby attain return based investments other than the investments within thesesystems (Pérez-Méndez and Machado-Cabezas 2015). In the current time period, there are several accounting techniques and tools that areavailable to the companies, which they can make use of in order to improve their financialactivities. Accounting Information System (AIS) is one much model that is utilised by most ofthe business enterprise in order to preserve, process acquire and announce the finance relateddata. This process can be used by various owners like the advisers, tax agents, businessresearchers and accountants and in some cases even by the managers of the firms.Fundamentally, this can assist in the method of facilitating the process of undertaking decisionswithin the business enterprise and can be customised in accordance to the demands of thebusiness environment, framework of the business and the actions that are undertaken within acompany. Christensen, Nikolaev and Wittenberg‐Moerman (2016) explains the fact that theessential factor that is related to the study associates to the assessment of the impact accountinginformation system in accordance to the extent of profitability of the companies as a whole. Accounting provides essential business data in accordance to the transactions in terms ofpecuniary because of the fact that accounting is a way of classifying, assessing and acquiringalong with communicating the requisite information for the purpose of undertaking businessdecisions. Otley (2016) explained that accounting information system is an essential part of theinformation process of an organization that can be helpful in the deliverance of the processedinformation. Significantly, this data that has been processed assists the companies in collecting
7RESEARCH METHODthe key information that is required in order to attain the business decisions and therefore has animpact on the profitability of the organization. 1.1 Background of the StudyThe development of the international economic scenario has been due to the developmentin the information technology, swift alterations in the process of production and enhancement ofthe sophistication of the customers, extensive level of market competition and skimmingoperations. These aspects have brought about unethical aspects among the manufacturers inorder to stay in line with the complex and the unpredictable dynamics of the business. This hasbrought to the face the significant function of accounting data in the business and the economicdisclosure effectively accordance to the efficiency of the management (Cassar, Ittner andCavalluzzo 2015). Galy and Sauceda (2014) addressed that accounting addresses the business language ashas the aim of recording all the transactions of a company or any other bodies that can be explainin monetary values. Grounded on the existing concept, accounting is looked upon to be thescheme and the process of classifying, gathering, summarising and communicating the data thatare fiscal in nature that is vital in order to undertake economic decisions. The performance of accounting for a number of years has enhanced right from the systemof single entry to the double entry system. The key goal of the accounting process has been toprovide the financial information that is inclusive of the sales, purchases, income and the costs ofthe firm but the current modern accounting world, maintenance is helpful in several ways(Seethamraju 2015). In the past, accounting was done in order to have knowledge about the lossand the profit of the companies but in the current time period this process is even helpful inenhancing the level of profitability of the company with the help of accounting information
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