Accounting Practices Report: Impact of Information Systems on Finance

This report, titled "Accounting Practices," delves into the application and impact of information systems within the field of accounting. It begins by defining Accounting Information Systems (AIS) and highlighting their role in financial decision-making, forecasting, and investment choices, emphasizing the use of computer-based tools like Enterprise Resource Planning (ERP) systems and accounting software. The report then examines the positive impacts of AIS on accounting practices, such as simplifying processes and improving accuracy through automated calculations and data management. The report also stresses the importance of accounting professionals gaining expertise in the specific software and systems used by their companies to effectively utilize the technology and troubleshoot any issues. This report emphasizes the significance of integrating information systems into accounting for improved efficiency and informed decision-making.

Running head: ACCOUNTING PRACTICES
Accounting Practices
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Table of Contents
Application of Information System in Accounting.........................................................................2
Impacts on Accounting Practices.....................................................................................................2
Reference.........................................................................................................................................4

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Application of Information System in Accounting
Accounting Information system refers to a tool which collects, processes, store and
distributes accounting information which can then be used to take financial decisions, forecasting
and investment decisions. Accounting Information Systems generally utilizes computer
appliances to run and function effectively (Hall 2012). Nowadays Accounting Information
System have really become popular in business and most of the businesses utilizes such a
system. The system depends on the nature of the business, volume of transactions taking place,
organizational structure of the company and other similar factors. Generally, businesses use
Enterprise Resource Planning (ERP) Systems, Integrated Packages of Computer programs,
System software like tally, excel, Cloud Computing.
Impacts on Accounting Practices
As the traditional method of recording transaction are no longer in much use, the new
information systems in accounting have positive impacts on the whole accounting process. The
most basic impact is that the it has simplified the whole of accounting process (Sajady, Dastgir
and Nejad 2012). With the change of one entry all the necessary changes happen automatically in
case of accounting information system such as ERP and other computer system software.
Moreover, with the introduction of information systems in accounting procedures there has been
an ease in operations where most of the critical work are done by the system and software and
the results can then be printed out. In addition to this there is accuracy in the calculations
provided the inputs are correct and there is no omission. In order to fully take advantage of such
new software and system, accounting professional needs to have adequate knowledge of the
software or system which they are or will operate. Therefore, accounting professionals needs to
train themselves in information systems which is used by the company. Moreover, accounting

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professionals needs to have full knowledge of the system they are operating in order to solve any
problems which may arise and get the desired results.

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Reference
Hall, J.A., 2012. Accounting information systems. Cengage Learning.
Sajady, H., Dastgir, M. and Nejad, H.H., 2012. Evaluation of the effectiveness of accounting
information systems. International Journal of Information Science and Management
(IJISM), 6(2), pp.49-59.