CHANGES AT METAL WORKS INCORPORATE (CASE STUSY)

Changes at Metal Works Incorporate (Case Study)



Changes at Metal Works Incorporate (Case Study)

Referring to the case at Ghanges at MWI There is no general agreement or a body of well defined knowledge for Information Systems. It is obvious that all information systems are systems but not all systems are Information systems. A sewing machine, for example, is a system but not an Information system. The main objective of an Information system is to monitor the operations of a target system without which the target system cannot exist. A manufacturing scheduling system, for example, would monitor/document all activities of its target system i.e. all manufacturing activities. An accounting Information System is the target system for Information system to all businesses keeping accounting software.

This includes the purchase, sales, cash books and nominal ledgers of the business. Traditionally, all accounting information was recorded in a written form especially in small businesses. All manual handwritten accounting journals, day books, ledgers can be replaced with computer accounting systems.

This is beneficial in terms of both cost and the information they provide, further it can also prove to be a marginal proposition. AT MWI accounting Software is computer software that records and processes all financial transactions which include all accounts receivable, accounts payable, profit and loss accounts, payments, invoicing, payroll, trail balance and balance sheet. Accounting software may vary greatly in its complexity and cost depending on the size of the business. It can be developed in various ways, can either be developed in-house or purchased from a third party. These accounting softwares not only help in recording day to day transactions but also provide a clear picture of how their business is performing.

Helps in providing all important reports for the management like VAT returns, summary of customer accounts, profit and loss accounts, balance sheet etc. Creates four different books of business- sales ledger, purchase ledger, cash books and general ledger. This system helps in getting away with the columnised "manually created double entry" system of book keeping. In the Computerised Ledger System when one financial transaction is recorded, it is recorded at different levels at the same time automatically.

For example, if there is a purchase of an asset on credit. When it is recorded as a purchase it automatically creates bills payable account and also increases the amount of assets. Computer spreadsheets are used especially ...