Accounting Information Systems Impact on Sydney Hospitality Org

This report investigates the impact of Accounting Information Systems (AIS) on organizational performance within the hospitality industry of Sydney, Australia. It begins by introducing the research topic, highlighting the problem of inefficient accounting methods in organizations and the potential of AIS to improve performance. The study aims to determine the importance of integrating a well-designed AIS to enhance company performance. The research questions focus on the impact of AIS in the Australian healthcare industry, its role in improving organizational performance, and its specific applications. The literature review explores existing studies and theories on AIS, emphasizing its role in collecting, storing, retrieving, and processing financial data, as well as providing crucial information for decision-making. It references studies that show a positive correlation between AIS adoption and organizational performance, examining the effects of AIS on financial data quality and the importance of financial analysis methods in business operations. The research methodology outlines the research design, approach, data types, collection methods, and sampling techniques used to conduct the study.

Accounting Information Systems 1
THE IMPACT OF ACCOUNT INFORMATION SYSTEMS ORGANIZATIONAL
PERFORMANCE: THE CONTEXT OF HOSPITALITY INDUSTRY OF SYDNEY,
AUSTRALIA
BY (Name)
The Name of the Class (Course)
Professor (Tutor)
The Name of the School (University)
The City and State where it is located
The Date

Accounting Information Systems 2
Abstract
Accounting Information System has become a fundamental part of business operations over the
years. The competitive business environment has forced companies to devise methods of being
highly competitive and efficient in order to experience growth and survive the dynamic business
conditions. Therefore, firms use Accounting Information System (AIS) to help adjust to the ever
changing conditions in the business environment. An AIS is system that allows for the collection,
storage, retrieval, management, processing and reporting of financial data and also helps in
uncovering accounting problems and mistakes within a company. As a result, it has become a
fundamental part of business. The system is designed to support all the accounting functions
such as managerial accounting, taxation, financial accounting and reporting and even auditing.
As a result, the system plays a critical role in organizations. Therefore, this report seeks to
examine the impact of account information systems organizational performance using the case
study of the hospitality industry in Sydney, Australia. Primarily, this paper is segmented into
various sections, namely the introduction to research, research problems and objectives,
theoretical background and literature review, and the research design and methodology. The
introduction section introduces the audience to the background of the study and why the research
topic is important and worth researching, It also highlights the problems that the research seeks
to resolve. On the other hand, the literature review examines the studies already conducted
within the same topic in order to gain useful information to inform the study. So far various
studies have been conducted in different countries and industry. However, so far, there is no
study conducted on the health care industry, especially Australia. Therefore, this research study
seeks to fill this research gap that exists and determine the impact of The Impact of Account
Information Systems Organizational Performance.

Accounting Information Systems 3
The Impact of Account Information Systems Organizational Performance: The Context of
Hospitality Industry of Sydney, Australia
1.0 Introduction to research
An accounting information system refers to a system for gathering, storing, and processing
accounting and financial data are that used by firms and decision making agents. Over the past
few years, the system has become an essential part of the accounting process. Many
organizations across the world have adopted and integrated the accounting information system
into the accounting functions. Generally, it is a computer-based way for tracking the accounting
activities of a firm in conjunction with information technology resources. Today, the system is
designed to support all the accounting functions such as managerial accounting, taxation,
financial accounting and reporting and even auditing. As a result, the system plays a critical role
in organizations. It is worth pointing out that a well-designed AIS system can help an
organization to run smoothly on the routine processes. Mainly, this is because the system not
only allows for the collection, storage, retrieval, management, processing and reporting of
financial data but also helps in uncovering accounting problems and mistakes within a company.
Therefore, it is important for a firm to have strong and maintained AIS that is accurate and
efficient to help in improving all areas of the accounting process.
This research seeks to address the problem of lack of a proper methods and systems of
accounting within organizations. Many organizations fail and become unproductive in their
processes due to lack of proper accounting operations within its structure. Therefore, this study
seeks to determine and uncover the importance and impact of integrating a well-designed AIS

Accounting Information Systems 4
into the operations of an organization with the aim of improving company performance in the
hospitality industry. Ordinarily, the accounting processes within a healthcare facility are intense
and large in number. Thus, it is difficult for the accountant to maintain proper records of all
accounting information manually. For this reason, they utilize the services of accounting
information system to enhance and improve the accounting process while improving the
performance of the firm. By and large, an AIS plays three major functions, which in turn play a
fundamental role in enhancing the performance of organization. The first function of the system
is to effectively and efficiently collect and store data concerning the healthcare facility’s
financial activities. Often, this comprises of getting the data from source documents across
departments, recording them in journals and posting them to ledgers. The second role of the
system is to supply information that is essential for making decisions. Mainly, this function is
made possible though the production of financial statements and managerial reports by the
system. The last function of the program is to ensure that all accounting functions are in place to
correctly record and process data.
Primarily, this research proposal is structured into various sections. The first section is the
statement of the research problem and the objective of this research. This section will state the
overall research problems and objectives of the study. The section that follows is the theoretical
background and literature review. This will provide a background of the studies and research
already done on the research topic. Afterward, the last section is the research design and
methodology. This section provides a detailed plan of the research design and methodology used
to conduct the study. It will provide and justify the type of research approach and the type of data
used in the study. In addition, it will describe the type of data used in the study, the data
collection process, and the sample used to inform the study.

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2.0 Research Problem and Objectives
2.1 Research Problem
The purpose of this study is to examine the impact of the AIS on the performance of
organizations within the healthcare industry. For a while now, the system has been used by firms
and businesses across industries such as hotel, manufacturing and financial services industries to
improve their operations and enhance productivity. Studies have shown that there is a positive
correlation between the adoption and integration of the AIS system and the overall performance
of the firm. In this regard, the study aims at determining the impact of the system on improving
the degree of performance of the health industry in Australia, using Sydney as a case study.
2.2 Research Questions
The following research questions shall be used to guide this research’
1. What is the impact of accounting information system in the healthcare industry of
Australia?
2. Does an accounting information system improve the performance of organizations that
integrate it into their operations?
3. How has the accounting information system been used to improve the performance of the
healthcare industry in Australia?
2.3 Research Objectives
The main objective of the study is to determine the impact of accounting information system in
organizational performance.

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Other objectives
1. To find out the relationship between accounting information system and the performance
of organizations.
2. To identify the impact of Accounting Information System on the outcomes of the
healthcare industry in Australia
3. To find out how the Accounting Information System can be used to improve the
performance of the healthcare industry in the country.
3.0 Theoretical Background and Literature Review
Over the past few decades, the business environment has become very competitive. As a result,
various studies have been conducted on the topic and theories have been developed on the
impact of the system in improving the operations of an organization. Today, organizations are
forced to improve their level of efficiency in operations in order to improve their competitiveness
and achieve growth. Thus, they are forced to examine and develop strategies that aim at
improving their overall operations effectively. As a result, many organizations have adopted the
Accounting Information System (AIS) to help improve and smoothen the accounting process
within their firms.
By and large, the system is very useful in performing essential accounting functions such as
collecting, storing, retrieving and processing data concerning a firm’s financial activities. In
addition, the system helps in supplying useful information for decision making by generating
financial statements and managerial reports for an organization. Further, the system has been
proven useful in making sure that all the accounting controls are put in place to accurately record

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and process the organization’s data. Therefore, overall, the AIS plays an essential role in
improving the performance of organizations that adopt it.
Generally, the fact that the AIS guarantees and assures the use of availability of sufficient
information to the organization at all times is what makes the program superior. As such, the
continued availability of updated information is an essential factor within organization for the
purposes of tax administration, statistical analysis, and decision making. Thus, the AIS helps the
management of organizations at all levels to make well-informed decisions within the
organization, and therefore improve the outcomes of the decision by improving performance of
the organization.
Al-Dalabih (2018) in the article “The Impact of the Use of Accounting Information Systems on
the Quality of Financial Data” examines effects of using AIS. Specifically, the study identifies
the effects of using AIS in the quality of financial data and information that is used among
companies in the Amman Stock Market. Using a sample of 70 people working across different
service sectors, the results of the study reveal that there is a statistically noteworthy relationship
between the use of AIS and the quality of financial data (Al-Dalabih, 2018). In addition, the
study shows that the nature and security of AIS has a positive effect on the quality of financial
data. As a result, the study recommends that firms should be keen to update their AIS used in
accordance with the technological developments. This way, it will ensure high quality financial
data for the decision-making process and hence improve the performance of the company.
In their study, Jawabreh, Mahmoud, Alshatnawi, and Momani (2017) reveal the importance of
using financial analysis methods in planning and monitoring the operations of the business.
According to Jawabreh at al. (2017), accounting has an indirect and direct effect on the decision

Accounting Information Systems 8
making process. As such, it is an essential tool for measuring business results and making
decisions based on the results. They show how the accounting financial analysis has played a
critical role in the credit and investment field as well as in management and planning. The study
shows how the hotel industry uses financial analysis to improve its operations. Specifically, it
reveals that the system has had a considerable positive influence on the performance and overall
profitability of hotels. Therefore, the financial analysis tool offered by an Accounting
Information System of great importance in helping to rationalize the decisions made within an
organization. Rational and informed decisions in turn lead to better results, and hence improve
the performance of an organization. Overall, the study concluded that there are no major
differences in the hotel businesses in Turkey because most of them utilized the AIS which
significantly improves their degree of productivity.
Lutfi, Idris and Mohamad (2017) report that SMEs are struggling to survive in the current
competitive business environment. However, they believe that AIS presents great potential for
these firms to attain sustainable competitiveness and survive in the ever changing business
world. Notably, the study discovered three major findings. First, it was discovered that
organizational readiness, competitive pressure, manager commitment, and competitive pressure
have a significant impact on the usage of AIS among firms and corporations. Additionally, the
study found that there is a significant correlation between the usage of AIS and its effectiveness
on the organization’s performance. Thirdly, the researchers noted that environmental uncertainty
does not moderate the relationship between the use of AIS and its effectiveness. Notably, this
observation was contrary to expectations. Generally, the study by Lutfi et al. (2017) provides
useful and important insights about how organizations can improve their use of Accounting
Information Systems to improve their performance.

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Furthermore, the study by Al-domour, Al-Fawaz, Al-domour, and Allozi (2017) also affirms that
there is direct relationship between AIS and business performance. The study strongly argues
that a proper and well-developed AIS is an enabler to the competitive advantage of a firm. In
addition, it determined that there were substantial causal links between the accounting system
and the performance of a firm. In turn, this study plays a vital role in informing the impact
caused by the AIS in enhancing the performance of an organization.
Also Akmese, Ekeren,, Aras and Kaya (2017) conducted a study to examine the role of AIS in
the hotel management process, using the case of Turkey. In this study, AIS is regarded as one of
the most powerful and essential tools required for the operation of a business. The study showed
that the AIS consists of four main factors which have significant influences on the performance
of the businesses in the hotel industry. Specifically, these factors include planning, control,
decision making and difficulties. The results of the study show that the control element of the
AIS system had the highest degree of participation followed by the planning factor. The
difficulty level had the least participation level of respondents.
In another study, Altawalbeh, Hashem, and Aldumeibat (2017) examine the role of AIS in
activating the role of the responsibility. Thus, it uses a study population comprising of
accounting managers working in industries across Jordan. The sample consisted of 50 managers
who filled in questionnaires. The results reveal that the attitude of the respondents towards the
role of AIS was positive, and therefore influenced the role of AIS in activating the role of
responsibility accounting among firms. Notably, the overall influence does not vary depending
on the educational qualification of employees. However, it varies substantially depending on the
experience of the employees.

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Likewise, Esmerey (2016) examines the impact of the Accounting Information System on firm
performance. In this study, the researcher uses the case study of small and medium enterprises in
Turkey. According to this study, there is a positive relationship between the use of an AIS
system within a firm and the level of performance and growth experienced within the same
organization. Additionally, the study reveals that the use of the accounting system within
organizations increases as the number of employees and business operations increase. That is to
say, the implementation of the AIS increases as the size of the firm increases. Mainly, this is
attributed to the fact that as the company grows, it becomes more difficult to follow the input-
output-sales-inventory accounts and, hence, the importance of the Accounting Information
System is growing. All in all, this study shows that there is a positive correlation between the use
of AIS and the performance of the firm.
Tarigan and Putri (2015) also examine the use of Accounting Information System and its effect
on the overall performance of hotels and restaurants. In their report, the researchers reveal that
there is a significant relationship between the use of the system and the competitiveness of the
firm within the industry. As such, firms that integrate and implement the accounting system into
their operations experience greater performance and, are therefore more competitive than those
that do not have the system in place. The study also indicates that there is a correlation between
the usage of AIS within a firm and the firm size. The study also highlights the fact that for
businesses to survive the high level of competition in the modern business environment, they
must be able to make the appropriate decisions. These decisions can be made through the use of
Accounting Information System. In turn, they will be able to make informed decisions based on
the financial analysis results from the system and hence improve the overall performance of the
business.

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In the same way, Harash, Al-Tamimi and Radhi (2014) examine the influence of AIS on the
performance of SMEs in Iraq. Predominantly, the study aimed at examining the effects of using
AIS in small businesses on their performance. The study found that the use of the accounting
program is often influenced by certain characteristics that exist within the firm, among them
reliability, timeliness and relevance. Notably, these features have major influences on the use of
AIS and their effects on the performance of medium and small businesses. Further, the study
affirms that it is very important for businesses to use the Accounting Information System to
ensure continuity, growth and survival in the ever-changing and competitive business
environment by enhancing their efficiency and capability.
Saiedi (2014) also examines the impact of accounting information on the financial performance
of an institution using the case study of India. The study notes that specially trained accountants
work with AIS to ensure the highest level of accuracy in a company’s recordkeeping and
financial transactions in order to make financial data easily available to those who need to access
it, while at the same time keeping the data intact and secure. The findings of the study indicate
there is a significant relationship between the use of AIS and the financial performance of an
institution.
Furthermore, Mzuzu (2014) examines the impact of the AIS on the profitability of small scale
businesses in Kampala, Uganda. The results of the study revealed that most small scale
businesses do not use AIS in their operations. As a result, they receive significantly low profits.
However, for those businesses that used the system in their operations, they indicated that there
is a positive relationship between the use of Accounting Information System and the profitability
of the small businesses.

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In the article “The Impact of Accounting Information System in Planning, Controlling and
Decision-Making Processes in Jodhpur Hotels,” Jawabreh and Alrabei (2012), show how
globalization technology has forced firms to adapt to the fast changing business environment. As
a result, they have adopted the Accounting Information System to ensure the successful
collection of high quality data to help them in making the right decisions. As such, accounting
information can be used within an organization to by managers to reduce uncertainties in
decision making. Mainly, this is due to the fact that the system allows the decision maker to
predict the outcome of their actions through the analysis of important financial data by the
system. As a result, this leads to improvement in the level of performance of the business.
Another study was conducted by Grande, Estebanez and Colomina (2011) to determine the
impact of AIS on performance measures. Like other studies, this research used the case study of
small and medium enterprises in Spain. By and large, it was based on a survey carried out among
SMEs to ascertain the extent to which development and implementation of AIS within firms
influences their productivity. Noteworthy, the results of the study affirm that there is a positive
relationship between SMEs that utilize AIS and better performance measures. By and large, this
study was an important contribution to the field of study as little research had been done on the
subject matter.
4.0 Research Design and Methodology