Accounting information system

An accounting information system ( AIS ) is a system of collecting, storing and processing financial and accounting data that are used by decision makers . An accounting information system is a computer-based method for tracking and accounting. The resulting and financial carryforwards can be used internally by management or by other interested Externally parts Including Investors , Creditors and tax autorités. Accounting information systems are designed to bracket all accounting functions and activities Including auditing , financial accounting & reporting, Managerial / management accounting and tax . The most widely adopted accounting information systems are auditing and financial reporting modules.


Traditionally, accounting is purely based on manual approach. Experience and skilfulness of an individual accountant are critical in accounting processes. Even using the manual approach can be ineffective and inefficient. Accounting information systems. AISs can support an automation of processing large quantities of data and produce timely and accuracy of information.

Early accounting information systems were designed for payroll functions in 1970s. Initially, accounting information systems were predominantly developed “in-house” as legacy systems. Such solutions were expensive to develop and difficult to maintain. Therefore, many accounting practitioners prefer the manual approach rather than computer-based. Today, accounting information systems are more commonly sold as prebuilt software packages from large vendors such as Microsoft, Sage Group, SAP AG | SAP and Oracle Corporation | Oracle where it is configured and customized to match the organization’s business processes. MYOB and Quickbooks. Large organizations would often choose ERP systems. As the need for connectivity and consolidation entre other business systems Increased, accounting information systems Were merged with larger, more centralized systems Known As enterprise resource planning (ERP). Before, with separate applications to manage different business functions, organizations had to develop complex interfaces for the systems to communicate with each other. In ERP, a system such as information system is built into a suite of applications that can include manufacturing, supply chain, human resources. These modules are integrated together and are able to access the same data and execute complex business processes. Today, Cloud-based accounting information systems are increasingly popular for both SMEs and large organizations for lower costs.

An example of architecture

An AIS is a multi-architecture architecture that separates the layers of the application. The presentation layer is a set of tools that can be used to describe the user interface. The whole system is backed by a centralized database that stores all of the data. This can include transactional data generated from the core business processes (purchasing, inventory, accounting) or static, master data That is referenced When processing data (employee and customer account records and settings or configuration). As transactions occur, The data is collected from the business events and stored in the system’s database where it can be retrieved and processed into information. The application layer retrieves the raw data in the log database , processes it based on the configuration of business logic and passes on the presentation to the users. For example, consider the accounts payable. With an accounting information system, an accounts payable clerk enters the invoice , provided by a vendor , into the system where it is stored in the database. When goods from the vendor are received, a receipt is created and also entered into the AIS. Before the accounts payable, the country of origin, the country of origin, the country of origin, and the country of origin. Once the match is complete, an email is sent to an accounts payable manager for approval. From here a voucher can be created and the vendor can ultimately be paid.

Advantages and implications

A great advantage of computer-based accounting information systems is that they automate and streamline reporting , developing advanced modeling and supporting data mining. [1] Reporting is a tool for organizations to accurately see summarized, timely information used for decision-making and financial reporting . This paper presents the results of the analysis and analysis of the financial performance of the firm and its decision makers. These systems should ensure that the reports are timely so that decision-makers are not acting on old, irrelevant information and, rather, Able to act quickly and effectively based on report results. Consolidation is one of the hallmarks of reporting as people do not have to look through an enormous number of transactions. For instance, at the end of the month, a financial accountant consolidates all the paid vouchers by running a report on the system. The system of application provides a report with the total amount paid to its vendors for that particular month. With broad corporations that generate large volumes of transactional data, running reports with even an AIS can take days or even weeks. A financial accountant consolidates all the paid vouchers by running a report on the system. The system of application provides a report with the total amount paid to its vendors for that particular month. With broad corporations that generate large volumes of transactional data, running reports with even an AIS can take days or even weeks. A financial accountant consolidates all the paid vouchers by running a report on the system. The system of application provides a report with the total amount paid to its vendors for that particular month. With broad corporations that generate large volumes of transactional data, running reports with even an AIS can take days or even weeks.

After the wave of corporate scandals from large companies Such As Tyco International , Enron and WorldCom , major emphasis Was put on public companies enforcing strong internal controls to Implement Into Their transaction-based systems. The Sarbanes-Oxley Act of 2002, which provides for the implementation of the Sarbanes-Oxley Act of 2002, [2] Since MOST of These Were scandals rooted in the companies’ accounting practices, much of the emphasis of Sarbanes Oxley Was put on computer-based accounting information systems. Today,


Many large and SMEs are now adopting cost effective cloud-based accounting information system in recent years.

Looking back years ago, most organizations, even larger ones, consultants, consultants, consultants or consultants.

The steps to implement an accounting information system are as follows:

Detailed Requirements Analysis
Where all individuals are involved in the system are interviewed. The current system is thoroughly understood, including problems, and complete documentation of the system-transactions, reports, and questions that need to be answered-are gathered. User requirements in the current system are outlined and documented. Users include everyone, from top management to data entry. The requirements are not limited to the developer with the specific needs. This is the first time I have ever had a job.
Systems Design (synthesis)
The analysis is thoroughly reviewed and a new system is created. The system that surrounds the system is often the most important. What do you need to know about the system? What information does it take to get out of the system? If we know what needs to come out, we know what we need to put into the system. The program will select the process. The system is built with control files, sample master records, and the ability to perform processes on a test basis. The system is designed to include appropriate internal controls and to provide management decisions. It is a meaningful, reliable, useful, and current information. To achieve this,
Once the system is designed, an RFP is created detailing the requirements and fundamental design. Vendors are expected to respond to the needs of the organization. Ideally, the vendor will input control files, sample master records, and be able to show how transactions are processed that result in the information that management needs to make decisions. An RFP for the information technology infrastructure. Sometimes, the software and the infrastructure is selected from the same vendor. If not, the organization must ensure that they will work together without “pointing fingers”
As the system is being designed, it is documented. The documentation includes the documentation of the system and, more importantly, the procedures or detailed instructions that help users handle each process specific to the organization. Most documents and procedures are provided by the vendor. Documentation and procedures are used for testing and training-before launch. The documentation is tested during the training so that when the system is launched, there is no question that it works and that the users are confident with the change.
Before launching, all processes are tested from input to output, using the documentation as a tool to ensure that all processes are thoroughly documented and that users can easily follow the procedures. The reports have verified, so that there is no garbage in-garbage out. This is done in a test system not yet fully populated with live data. Unfortunately, most organizations launch systems before thorough testing, adding to end-user frustration when processes do not work. The documentation and procedures may be modified during this process. All identified transactions must be tested during this step.
Before launch, all users need to be trained, with procedures. This means that every procedure has to be carried out. The design of the design is modified with this additional information. The end user then performs the procedure with the trainer and the documentation. The end user then performs the procedure with the documentation alone. The end user is then in his or her own support, either in person or by phone, of the trainer or other support person. This is before data conversion.
Data Conversion
Tools have been developed to convert the data from the current system (which was documented in the requirements analysis) to the new system. The data is mapped from one system to the other. The conversion is thoroughly tested and verified before final conversion. There’s a backup so it can be restarted, if necessary.
The system is implemented only after all of the above is completed. The entire organization is aware of the launch date. Ideally, the current system is retained and often run in “parallel” until the new system is in full operation and working properly. With the current mass-market software, the “parallel” run that is mandatory with software tailor-made to a company is not done. This is only true, however, when the above process is followed, the system is thoroughly documented and tested, and users are trained before launch.
Online resources are available to assist with strategic planning of information systems. Information Systems and Financial Forms in the Specific Needs of Each Organization. [3]
The end users and managers have all available support at all times. System upgrades follow a similar process and all users are thoroughly apprised of changes, upgraded in an efficient manner, and trained.
Many organizations have a lot to do with the analysis, design, documentation, and training, and move right into software selection and implementation. A detailed description of the implementation of the project will be provided. Organizations that skip the steps to ensure the system meets their needs are often left with frustrated end users, costly support, and information that is not current or correct. Worse yet, these organizations build the system three times instead of once.


Many AIS professionals work for consulting firms, large corporations, insurance companies, financial companies, government agencies and other companies. With technological advancement, traditional accounting practices will shift to accounting information systems practice. Both accounting and information technology firms are working on the new directions of accounting programs and industry practices. System Auditors is one of the most widely used systems in the industry. A lot of the companies will be able to deal with the software. If you are interested in a career in business, or if you are looking for a career in IT, Some job titles in this field include financial manager, financial analyst and chief financial officer. You could also become a computer systems analyst, a computer information systems manager or a computer software engineer or programmer specializing in financial software.

If you are looking for a full-time ISP, In a programming-oriented company, your focus may be directed towards developing new software in AIS or fixing bugs in an AIS. In both cases, you may also have the option of consulting, which requires traveling to different companies to provide analysis and advice concerning the company’s AIS.


See also

  • Accounting software


  1. Jump up^ “Archived copy” . Archived from the original on October 18, 2011 . Retrieved November 3, 2010 .
  2. Jump up^
  3. Jump up^ Accounting Information Systems: on Information Collection, Storage and Processing of Financial and Accounting Data. Accounting Information Systems. Retrieved 7 December 2012.

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