Report on Accounting Information System: External Users and Sharing

This report delves into the realm of accounting information systems (AIS), focusing on the crucial role of external users in the business context. It underscores the significance of information sharing with various external entities, including creditors, investors, and software developers. The report meticulously examines how businesses share information to secure resources, attract investment, and develop effective software applications. Specifically, the report explores how businesses engage with creditors to obtain resources and secure favorable terms, and how they collaborate with investors by providing detailed information to attract investment. Furthermore, it highlights the importance of information exchange with software developers to develop and improve the business applications. The report concludes by emphasizing the strategic importance of information sharing in the overall success of the business while also considering the need for careful management of confidential information.

Accounting information
system

TABLE OF CONTENTS
 INTRODUCTION
 EXTERNAL USERS WITH WHOM INFORMATION IS
SHARED AND RECEIVED
 CONCLUSION
 REFERENCES

INTRODUCTION
 It is the system which is used by the organizations for the purpose
of collecting, storing and processing the relevant information
which will be very helpful for the company.
 These are its only functions which results into effective
management of accounting information.
 This presentation is about the various external parties which are
interested in knowing the information about the company.

EXTERNAL USERS WITH WHOM
INFORMATION IS SHARED AND RECEIVED
Creditors
 Creditors mainly provide required resources on a credit basis for a certain time
framework.
 Businesses share the information with creditors with aim of getting resources at
discounted prices if possible, looking at the benefits of both the parties.
 In return, creditors may provide certain relevant information which might be very useful
to the business with respect to different sources of finance.

Cont..
Investors
 Investors are those who are interested in investing in the new business and are the
major risk takers.
 For this company is required to share the idea to the investor along with plan for
implementing the idea.
 It is a two-way sharing where investor also share important information with
respect to different sources of finance, dealers for purchasing equipment’s.
 The main purpose of investors is to get higher return on the amount invested for
which requires company information.

Cont..
Software application developer
 For starting the business, the most important thing required is the software application.
 Th application needs to be very attracting and appealing to its target customers for which it
requires to share the information with the developer along with the different needs it should
support.
 Based on the information shared by the company, the software developer may be able to
provide other interesting idea with respect to the business which may add value to the
business.
 The developer might be having good contacts with other businesses which can provide help
and support in some or the other ways either financial or non-financial.

CONCLUSION
 It can be summarized that for starting a business requires the company to share
business information to the external users.
 The only aim is to get help in respect to the procurement of resources for
effective management of business operation.
 Sharing information is a risk-taking thing and businesses needs to be very
careful about it as this may lead to risking the confidential information to the
outsiders.
 This process is important for very company for establishing the business.

REFERENCES
 Ye, Z. and Hu, J., 2020, February. Internal Control of Enterprise Computer Accounting
Information System in the Age of Big Data. In The International Conference on Cyber
Security Intelligence and Analytics (pp. 315-321). Springer, Cham.
 Khan, H. F., 2016. Accounting information system: the need of
modernisation. International Journal of Management and Commerce Innovations. 4(1).
pp.4-10.
 Kocsis, D., 2019. A conceptual foundation of design and implementation research in
accounting information systems. International Journal of Accounting Information Systems.