Executive Summary
Purpose
The purpose of study of accounting information system is to relate to the changing business environment, advances in technology and the even increasing use of information systems. The need for cross functional organization is one of the most important reasons for the study of accounting information systems. There are various people related to a business and an integration among the various departments and the functions is extremely important.
Significant Findings
The study shows the importance of accounting information system. It also shows the importance as related to each department and the people who are eventually going to use the system. Although ERP has strength in reporting, there has been a need for a system that caters only to the accountants and works for providing information to the decision makers. It has been noticed that an accounting information system has very little impact on managerial decision making and on accounting. This could be due to lack of interest and the lack of awareness about the particular software.
Conclusion
It has been concluded from the study that though accounting information system is extremely important for an organization it has not been accepted like an ERP has. There is not adequate knowledge of its operations and nor is there an interest to learn about it.
Introduction
An accounting information system is a subset of a management information system, it provides timely and detailed financial reports and data for decision making and internal management review. The information is also useful to external parties for review specially by creditors, investors, and government authorities. It is a computerized system which provides information and generates the reports necessary for the management. It helps in managerial decision making as well as in making any necessary changes in the work environment. Much time was spent in researching the various AIS in terms of value creation perspective and in the study of analytical applications and decision making.
The value creation perspective consists of the ability to optimize the usage of the software in terms of product pricing and the dynamic utilization of the resources. It is extremely important to understand the relationship between the customer expectations and the resource availability. AIS can be used to apply value chain method of just in time method of accounting which will help the management make the right decision without any wastage of time. AIS can also help avoid stocking up on inventory and the under utilization of resources. With efficient application of AIS in a manufacturing or a production unit, the costs of inventory and carrying costs can be reduced, this will ensure that the purchases are only made when required and the stock is regularly maintained. With AIS the management will not have to worry about ordering the stock, instead the system will remind the management of the stock and the need to purchase. Value chain method also helps the management in a similar situation. It helps organize the various activities in an organization with the help of AIS.
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