IMPROVING TRANSACTIONAL PROCESSING

Assignment 3: Improving Transactional Processing in AIS



Assignment 3: Improving Transactional Processing in AIS

Introduction

An accounting information system consists of one or more transaction processing cycles or applications. These cycles group related transactions. The nature and types of transaction processing cycles vary, depending on the information needs of a particular organization. The revenue cycle includes capturing information about all sales transactions and cash collection on accounting. The purchasing cycles include tracking expenditure and inventory transactions. Transactions related to human resources include personal and payroll activities. Since the scope of this study is the payroll system, the resources management cycle will be fully discussed. This paper will present impact of information system within “The Middlefield Banking Company (MBC), USA. The paper presents a brief overview of the organization, the information system being used, the effectiveness of the system and recommendations for improvement of the information system currently in practice. Definitions of key concepts, including the Information System, the SI, that are part of the computer are also presented the five components of SI: the machine component, software, data, procedures, and then the men are being given particular emphasis at each stage (Dante 1988). The report proposes changes in firm's revenue, expenditure, human resources and financial reporting.

Profile of the firm introducing AIS changes

Middlefield Banking Company (MBC) is headquartered in Middlefield, Ohio. Established in 1902, MBC is one of the major commercial banks in the state, which performs all commercial banking activities. It was the first commercial bank in Middlefield to adapt quickly to Information technology. The Middlefield Banking Company operates offices in Chardon, Garrettsville, Mantua, Newbury, Cortland, Orwell and Middlefield. The Middlefield Banking Company is a wholly owned subsidiary of Middlefield Banc Corp., a one-bank holding company. In 2007, it acquired Emerald Bank (an Ohio-chartered savings bank headquartered in Dublin). At March 31, 2003, Middlefield Banc Corp. reported total assets of $240 million, with net loans of $177 million and deposits of $195 million. Middlefield Banc Corp. ended 2009 with total assets of $558.7 million. This represents an increase of $90.8 million, or 19.4%, from its position at December 31, 2008. There was strong growth on both sides of the balance sheet and at both banking affiliates (MBC Annual Report 2209). The success that it enjoyed in the past year is directly attributable to the use of its information systems in line with the changing needs of its customers. MBC deals in personal banking, investment banking and business banking, with online banking as a facility common to all of its services.

Description of IT systems in MBC

The main objective of this analysis is to show their current status of information system at MBC. Given the number of services MBC provides, we will see the number of and quality of information system components in a given period and we will try to show their ability to determine whether these capabilities warrants MBC as a bank with a sound information system. It was necessary to also become familiar with the company's ...