ACCOUNTING INFORMATION SYSTEMS

How Technology in Business Operations has Impacted Accounting Information Systems

Abstract

Organizations are evolving at a rapid pace, as they attempt to match pace with globalization and the information technology revolution. Regrettably, information systems technology does not render help to allow systems to evolution, making information mechanisms a barrier to organizational development. It is advised to consider information mechanisms as social structures and classify methods which expand and grow effortlessly into an information mechanism in its operational surroundings (Mylopoulos et. al, 2001). This paper seeks to find out answers as to how accounting information mechanisms add to the organizational value chain? This would require carrying out a detailed analysis of how the system is developed. AIS development comprises of phases that are followed strictly. AIS can also be customized to suit the needs and requirements of a particular organization. Security issues need to be dealt with in order to make AIS secure. The other question that this paper answers is what managements and accountants can infer from this analysis. AIS integrated businesses, vendors, customers and suppliers to add maximum value for business. AIS can also be used as knowledge management system that can provide past records to make prediction for future. The analysis shows how AIS has streamlined business processes by bringing together all the core functions of a business. All functions can work in collaboration with the other. This means businesses are gradually adapting to the changes that are taking place in the field of technology. The introduction of AIS has altered the manner in which business operate. To gain the edge over the other, organizations are choosing to implement AIS to be able to effectively and efficiently outdo their competition.

Table of Contents

Abstracti

Introduction1

Accounting Information System3

Development of AIS4

Planning5

Analysis5

Design5

Implementation6

Adding Value to the Organization7

AIS and Value Chain8

Findings9

Inferences for Management9

Inferences for Accountants9

Conclusion10

References11

How Technology in Business Operations has Impacted Accounting Systems

Introduction

In this age of technology, everything is rapidly become integrated and automated. With the advent of computers, man has been able to use its greatest invention to his benefit. Computers, as we all are aware, were initially used for calculations and office computations. Businesses that were conscious of its potential and benefits were quick to adopt the machine. Being exceptionally quick at functioning, computers enabled businesses to process tons of data at lightening speeds. This speed meant businesses began to crave for more functions to help perform business activities. In their quest to gain more from computers, businesses started developing programs to help streamline their business processes. At the start, these programs were general in nature and were not made to match specific needs. This obstacle was a result of a lack of technological development. Since computers were in their infancy, there were barriers to put computers to effective use.

As technology progressed, computers became sophisticated. This advancement meant computers were now laced with added benefits. User interface became friendly and easy to use. The 1980s saw computer technology flourish with large-sized computers being replaced by smaller ones. Computers were now able to perform beyond ...