The Impact of Accounting Information Systems on Hospitality in Sydney

This report analyzes the impact of Accounting Information Systems (AIS) on the hospitality industry, focusing on the context of Sydney, Australia. It begins with a brief summary of AIS theory and then identifies common and different themes from selected articles, including the impact of AIS on competition, organizational performance, information quality, and data quality. The report examines managerial implications, highlighting the importance of AIS in enhancing efficiency and decision-making within the hospitality sector, and discusses the use of various accounting systems in the industry. Finally, it addresses study limitations and suggests areas for future research, such as exploring the implementation challenges and the development of AIS for human resource rehabilitation within Australian hotels. The analysis emphasizes the need for hotels to leverage AIS for improved performance, strategic planning, and competitive advantage.

Running head: IMPACT OF ACCOUNTING INFORMATION SYSTEMS
The impact of accounting information systems in organizational performance: The context of
Hospitality Industry of Sydney, Australia
Name of the University:
Name of the Student:
Authors Note:

1IMPACT OF ACCOUNTING INFORMATION SYSTEMS
Table of Contents
1. Brief summary of the theory............................................................................................2
2. Common themes and findings from the articles..............................................................2
3. Different themes and findings from the articles..............................................................4
4. Managerial implications of four articles..........................................................................6
5. Study limitations and future research..............................................................................7
References............................................................................................................................8

2IMPACT OF ACCOUNTING INFORMATION SYSTEMS
1. Brief summary of the theory
In this competitive business environment, the companies, in order to witness a stable
growth, have to examine their strategies on a regular basis so as to consider the risk and operate
tactfully. Hence, to keep pace with the changes, the need of information is of utmost importance,
which supports the decision-making process of the business manager (Jawabreh 2018).
Therefore, the tool which assists the managers is termed as Accounting Information System
(AIS). The AIS is referred to hold such significance because it not only stores the accounting
information of the organization but also gauges, maintain as well as also communicates the same
in the accounting report.
The Accounting Information System (AIS) generally contains the essential factor which
is idle for an accounting cycle. This makes it the most important element for an organization
which is kept much secured and measures are taken against any virus attacks or hacking. The
basic task of this tool includes the assurance of availability of sufficient information which is
need throughout for various purposes such as tax administration, conducting statistical analysis
and even decision-making purpose. Hence, the AIS seem to help the managers of all levels to
determine as well as manage the process so as to achieve the company’s strategic goal.
2. Common themes and findings from the articles
Four important articles are selected “The Impact of Accounting Information System in
Planning, Controlling and Decision-Making Processes in Jodhpur Hotels”, “The Impact of
Accounting Information Systems (AIS) on Firm Performance: Empirical Evidence in Turkish
Small and Medium Sized Enterprises”, “Using Financial Analysis Methods in the Hotel Sector

3IMPACT OF ACCOUNTING INFORMATION SYSTEMS
for the Purposes of Planning and Monitoring Case Study Al Zaitonia Hotel” and “The Usage of
Accounting Information System in Hotel and Restaurant Management: An Evidence from
Indonesia” in identifying the common themes from them.
Theme 1: Usage of Accounting Information System in enhancing competition intensity
Jawabreh (2018) stated that the higher the competition within the industry, the more will
be usage of effective accounting information system for improving organizational performance.
The information that will be gathered from the information system will be useful in the planning
and decision making strategy of the organizations. Esmeray (2016) indicates that in order to
survive as well as succeed within the competitive market, the organizations require to observe
the likely threats cause to the potential consumers. The accounting information system will also
offer relevant information on the threats related with the substitute services or products and the
characteristics along with the intensity of business rivalry within the industry. These articles also
indicated that AIS can be employed by the hotels in monitoring their services offered in
comparison to its competitors. Tarigan and Putri (2015) indicated that such information can be
gathered regarding maintaining stability of consumer needs along with addressing food and
service quality needs of consumers.
Theme 2: Accounting Information System Impact on Organizational Performance
Jawabreh (2018) presented a view that accounting information system offers
benchmarking along with monitoring information that can further facilitate the hotels in
recognizing, monitoring along with implementing suitable strategy that can improve
performance of the employees within the hotels of Jodhpur. It was gathered from these articles
that usage of AIS facilitates the hotels to turn out to be a learning organization. Jawabreh,

4IMPACT OF ACCOUNTING INFORMATION SYSTEMS
Mahmoud and Al Momani (2017) stated that use of AIS can facilitate the hotels Al Zaitonia in
maintaining better operations amendment. Information gathered from AIS can facilitate hotels in
make better decisions to enhance their performance based on certain important metrics. The
metrics indicated by the selected articles include number of units produced, lead time of
processes, levels of capacity utilization and better service offered to consumers. Esmeray (2016)
revealed that most of the hotels in Turkey rely on the accounting information system for
attaining better planning and performance objectives through controlling information in a
manner so that they are relevant, accurate, timely, and cost effective and has clarity.
3. Different themes and findings from the articles
Four important articles are selected “The Impact of Accounting Information System in
Planning, Controlling and Decision-Making Processes in Jodhpur Hotels”, “The Impact of
Accounting Information Systems (AIS) on Firm Performance: Empirical Evidence in Turkish
Small and Medium Sized Enterprises”, “Using Financial Analysis Methods in the Hotel Sector
for the Purposes of Planning and Monitoring Case Study Al Zaitonia Hotel” and “The Usage of
Accounting Information System in Hotel and Restaurant Management: An Evidence from
Indonesia” in identifying the different themes from them.
Theme 1: Information Quality and Organizational Performance
Jawabreh, Mahmoud and Al Momani (2017) indicated that the quality along with
effectiveness of AIS depends on the input and output quality along with process and this
processes the data quality essence in hotel performance. Implementation of AIS must be done by
means of considering the system quality along with quality of data employed within the decision
making process of the company. Esmeray (2016) evidenced that improvement in a hotel’s AIS

5IMPACT OF ACCOUNTING INFORMATION SYSTEMS
needs to be carried out through enhancing the quality of data employed within decision making
process of the hotel. Data quality is deemed to be important in ensuring positive impacts of the
organizations internal auditors’ perception. These researchers also revealed that the essential
aspect that must be maintained by the AIS in hotels includes developing company benefits in
well-designed and better implemented systems. Jawabreh (2018) indicated that proper
implementation of AIS can enhance performance of hotels as it can avoid occasional system
crashes in hotels that are important in maintaining business operations resulting in decreased
organization product cost.
Theme 2: Data Quality and Hotel Performance
According to Esmeray (2016) in case the accounting information system is not well
designed it might result in failure of the performance in hotels. For this reason, it is important for
the hotels in Turkey to maintaining data warehousing through information gathered from its
accounting systems. This is because of the reason that AIS is deemed to be related with
perceived net benefits in terms of individual productivity along with ease of decision making at
operational level. Jawabreh, Mahmoud and Al Momani (2017) indicated that system quality is
positively linked with the organizational influence in the hotel Al Zaitonio. For this reason, these
articles presented a view that in order to produce business values of hotels through its
information systems; they must ensure efficient delivery of this system through its attributes.
Tarigan and Putri (2015) revealed such AIS attributes include documentation availability along
with ease of use. The articles explained that use of accounting information system enhances the
internal control system within hotels of Indonesia that can further enhance service delivery
process of hotels.

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4. Managerial implications of four articles
Accounting Information System has been very important for the hospitality industry. In
such businesses, the whole process depends on Information Technology (IT), beginning from
customer search to fulfillment of their needs. Hence, in hospitality industry, investment in
information technology tools is quite imperative in order to run the processes smoothly and
efficiently. It has been observed that in Jodhpur hospitality industry, the use of technology has
been on pace, replacing the traditional process in so as to improve their service and increase
efficiency and productivity.
Accounting Information System has played an important role in this industry as all of the
economic data, be it financial or non-financial, is transformed into the accounting information
for needs of various users. The implementation of the same across the Indonesian hotels has
allowed the accounting demand of those hotels to guide other departments regarding the
procedures. Moreover, it has also been learned that integration of Accounting Information
System with Information System Sophistication (ISS) can enhance the benefits of the AIS as a
whole. However, in most of the hotels and restaurants, it has been observed that they have been
using the various accounting systems but a deeper penetration of AIS is needed within the
market to enhance the work quality. It has also been seen that accounting-based application is
used in hotels are for accounts receivables, payables as well as payroll.
Considering the current competition in market, the Turkish hotels are using various
accounting systems as well such as MYOB, Xero, Quick books, Fresh books and Zoho books.
However, there are very little differences among them as most of them serve the same idea. In
this context, integration as well as automation of accounting functions is what provided by all of

7IMPACT OF ACCOUNTING INFORMATION SYSTEMS
them. Turkey being a developed nation has fully shifted to accounting systems and is efficiently
using the same.
5. Study limitations and future research
From analysis of the selected four articles it has been gathered that there are certain
limitations in this current research that must be addressed in the future research. The themes
explained from the four selected articles failed to explain that the hotel industries are dealing
with issues concerned with the proper implementation of accounting systems within the hotels of
Australia. These articles also presented a gap in explaining the expenses in implementation of
accounting information systems along with the management’s contribution in making relevant
investment decisions that facilitates the Australian hotels in taking investment decisions on
organizational performance improvement. Previous researches just focused on explaining
accounting standards followed in hotels of Jodhpur, Turkey and Indonesia. Various previous
reasechers were just limited to explain the accounting standards followed by hotels in selected
nations and very less research is available on accounting systems used in Australian hotels.
Considering this research gap, the future research will focus on explaining the development of
the accounting information systems that can increase the human resource rehabilitation within
the hotels of Sydney, Australia. The future research will also focus on explaining the ways in
which managers develop the capability of understanding the business environment along with
related activities.

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References
Jawabreh, A. A. O., 2018. [online]. The Impact of Accounting Information System in Planning,
Controlling and Decision-Making Processes in Jodhpur Hotels. Available at:
http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.699.4334&rep=rep1&type=pdf
[Accessed 7 May 2018].
Esmeray, A., 2016. The Impact of Accounting Information Systems (AIS) on Firm Performance:
Empirical Evidence in Turkish Small and Medium Sized Enterprises. International Review of
Management and Marketing, 6(2).
Jawabreh, O.A., Mahmoud, R.M. and Al Momani, E., 2017. Using Financial Analysis Methods
in the Hotel Sector for the Purposes of Planning and Monitoring Case Study Al Zaitonia
Hotel. International Journal of Economics and Financial Issues, 7(4).
Tarigan, J. and Putri, F.E., 2015. The Usage of Accounting Information System in Hotel and
Restaurant Management: An Evidence from Indonesia. The Journal of Applied Business and
Economics, 17(4), p.105.