Accounting Information System Report on External Users of Information

This report provides an executive summary of an Accounting Information System (AIS), focusing on the relevant external users of financial information. It identifies key external stakeholders, including creditors, investors, business consultants, and software application developers, and details the typ...Read More

Accounting information system

EXECUIVE SUMMARY
This report, presents about the Accounting Information System which is based on the
case study. It covers relevant external users of information with whom company shares
information for establishing business and getting success. The key users are investors,
suppliers, business consultant etc. Based on findings they are important for the business and
needs to handled carefully.

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................4
MAIN BODY.............................................................................................................................4
External users with whom information is shared and received..............................................4
CONCLUSION..........................................................................................................................5
REFERENCES...........................................................................................................................6

INTRODUCTION
The accounting information system is a system that is used for collecting, storing and
processing the accounting and financial data and it also provides informative reports which
can be used by decision makers, stakeholders to make a better and informative business
decision. It has three main functions to play in, that is collecting and storing data, supplying
useful information and ensuring control with respect to recording and processing of data.
This report presents the key external parties to which the company is required to share and
receive the information back and forth based on the case study.
MAIN BODY
External users with whom information is shared and received
External users are those who have an interest in the company’s accounting and
financial information but are actually part of the administrative process (Ciuhureanu, 2019).
But they have a direct or indirect interest in the company’s information. Below is the list of
external users with whom company’s information is shared.
Creditors
They are people who provides loan in the form of materials and other resources which
will be required to initiate the business. But for doing so, some of the important information
about the business is required to be shared like what is new thing about the business, how it
will manage to survive in the market, the complete business idea and the complete plan to
achieve the objectives and other sources of finance and who all are involved in it (Khan,
2016). In turn, the creditors might help the business in finding other sources of funds and
others who provide better deals.
Investors
Investors are mainly the capital providers and who takes risk by providing funds to
the new business. But for that, relevant business information is required to be shared. This
information includes the complete business idea and its benefits (Zhang and Ni, 2016).
Estimated time period required to settle the business and start earning profits and return the
amount. The amount received will be used in acquiring the relevant equipment’s and
machinery (Spătărelu and Petec, 2016). Also, for promoting business and training the
employees. On the other hand, the investors can also assist the company in getting touch with
other well-known entrepreneurs who can help in providing proper support and guidance for
the business.
Business consultant
It is very important to consult a professional mostly in the same field who can
understand the business more easily. This help in areas where the company needs to work in
for getting success (Wells, 2018). For this, it requires to share all the business-related
information but there is no need to talk about the who are the investors. In return, the
company will get to know about the current market in the same industries, its competitors,
what are the challenges it will face etc. Along with that the business consultant will help it in
identifying the other sources of finance required for managing its business needs.
Software application developer

The company will be required to develop the software application for which they will
look for the best. In order to get the best and as per the expectation it is very essential to make
that person understand the objective of the business, target customers, the level of starting the
business and how it should look like (Uyar, 2019). Based on the information provided, the
software developer will also share some valuable information which might to useful for the
company such the person might be having some exposure to the similar kind of business and
can help the company in some or the other way to get in contact with others who can help and
contribute to the business either financial and non-financial.
The stated are the most important users who will be interested in knowing the
company’s information and future prospect (Wang, 2017). The only objective of them is gain
the market exposure and increase their profitability. Investors and creditors are high risk
takers and the only thing that can drive them is profitability or excellent idea. Thus, there are
different external users of information which is based on the business needs and the amount
of information to be shared with them should be taken care of.
CONCLUSION
It can be concluded from the above that for starting and establishing a business it is
very crucial to carry out the complete market research. Apart from this, the company might
be required to take some sort of risk with respect to business model as it has to share this
information many external parties. But all these things are very important from business
perspective and also the different sources of information and finance that are available.

REFERENCES
Books and Journals
Ciuhureanu, A., 2019. Accounting Dualism–Particularities and Information Source for
Internal and External Users in Organizational Development. Scientific
Bulletin. 24(2). pp.117-123.
Khan, H. F., 2016. Accounting information system: the need of modernisation. International
Journal of Management and Commerce Innovations. 4(1). pp.4-10.
Spătărelu, I. and Petec, D., 2016. The importance of accounting information in decision
making. Ovidius University Annals, Economic Sciences. pp.611-615.
Uyar, M., 2019. Adoption of Accounting Information Systems in Businesses. In Structural
Equation Modeling Approaches to E-Service Adoption (pp. 101-124). IGI Global.
Wang, Y., 2017, March. The Functional Design and Application of Computerized
Accounting System in the University Financial Management. In 2017 7th
International Conference on Education, Management, Computer and Society
(EMCS 2017). Atlantis Press.
Wells, P. K., 2018. How well do our introductory accounting text books reflect current
accounting practice?. Journal of Accounting Education. 42. pp.40-48.
Zhang, L. and Ni, G. A., 2016. Research on Accounting Information System Based on
Business Process. International Journal of Simulation--Systems, Science &
Technology. 17(7).