Computerized Accounting Information Systems: A Report

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A N A LY S I S I N G L O B A L B U S I N E S S
E N V I R O N M E N T
Computerized Accounting
Information System

Table of Content
Introduction
Analysis
Summary of Findings
Recommendations
Conclusion

Introduction
 The objective of this report is to analyse the importance of accounting information
system in the organizations.
 Accounting information system can be described as the system which gathers stores
and processes the financial and accounting information beneficial for the decision
makers within the organization.
 The computerized and cloud-based accounting information systems are increasing
continuously for large organizations.
 The data provided by the accounting information system can be used by managers,
business analysts, consultants, and regulatory authorities.

Analysis
 Most of the companies are using AIS to keep track of various
accounting activities by using information technology.
 Accounting Information System (AIS) is composed of three major sub-
systems i.e. Transactional Processing System (TPS), General Ledger
and Factory Ledger system and Financial Reporting System (GL/FRS)
and Management Reporting Systems (MRS).
 Most of the companies are using AIS to keep track of various
accounting activities by using information technology (Leitner, 2012). .

Types of Accounting Information System
 Enterprise Resource Planning System (ERP)- An Enterprise Resource
Planning System is the software which includes the complex set of
applications in the computer
 Commercial accounting software- There are some commercial accounting
software i.e. FreshBooks, QuckBooks and TurboCash which are helpful in
managing various business and accounting needs in effective manner.
 Enterprise accounting software- The enterprise software is based on the
relational database which shows the relationships between a different set of
data.
 Spreadsheet system- In the accounting information system, there is
spreadsheet package which is used to maintain the accounts in the
organization.

Summary of Finding
Quick financial reports- The computerized accounting
information system can generate various types of reports in the
business i.e. profit and loss reports, and VAT reports etc.
Improvement in business performance- Inventory control,
business functions and statutory reporting can be done easily
that result to faster access to business information
Simplification of transactions- The accounting functions like
double entry principles and record keeping can be simplified
by the computerized accounting information system
Minimized errors- Computerized accounting information
system is helpful in detecting the errors in the financial reports

Recommendations
 The financial institutions, banks, and other organizations should adopt the
culture of using computerized accounting information system so that financial
reports can be prepared in an easy way.
 It is recommended that the organizations should adopt the idea of establishing it
so that the business operations can be improved in effective and efficient
manner.
 Computerized accounting information system should be implemented to
improve the qualities of financial reports in the organizations and financial
institutions.

Conclusion
 The computerized accounting information system can enhance the
accuracy of information.
 Accounting information systems include confidential data that is kept
safe all the time.
 Computerized accounting system allows the analysis of stored
information for taking business decisions in an effective manner.
 By using the systems, the accountant uses defined templates and
provides faster and accurate entry of transactions.

References
 Appiah, K.O., Agyemang, F., Agyei, Y.F.R., Nketiah, S. and Mensah, B.J., 2014.
Computerized Accounting Information Systems: Lessons in State-Owned Enterprise in
Developing Economies. Journal of Finance and Management in Public Services, 12(1).
 Aslan, B., Stevenson, M. and Hendry, L.C., 2015. The applicability and impact of
Enterprise Resource Planning (ERP) systems: Results from a mixed method study on
Make-To-Order (MTO) companies. Computers in Industry, 70, pp.127-143.
 Fontinelle, A. 2018. Introduction to Accounting Information Systems. (Online) Available
at: https://www.investopedia.com/articles/professionaleducation/11/accounting-
information-systems.asp (Accessed on 6th March 2019)
 Leitner, S., 2012. Information quality and management accounting. Berlin: Springer.
 Meghanathan, N., Chaki, N. and Nagamalai, D., 2012. Advances in computer science
and information technology. Berlin: Springer.
 Mzuzu, M. K., 2014. Impact of Accounting Information Systems on Profitability of
Small Scale Businesses: A Case of Kampala City in Uganda. International Journal of
Academic Research in Management, 3(2), 185-192.