Accounting Sysytem
July 25, 1999
Chapter 4. Computer-based Accounting Systems: Practice
The previous two chapters attempted to identify the characteristics of "good" accounting systems by reviewing the normative and empirical literature. This chapter begins the right-hand branch of the four-chapter Requirements Determination process illustrated in the lower half of Figure 1.1: it surveys the present state of computer-based accounting practice; Chapter 5 reviews computer-based accounting systems theory. Opportunities and problems identified in this chapter should indicate areas for improvements in future computer-based accounting systems.
Despite the widespread use of computer-based accounting systems (see survey evidence in Section 4.1 below) there has been very little research into the features that make one system or suite of systems better than another. It was therefore necessary to conduct some first-hand empirical studies specially for this thesis. It is unusual to report original empirical research in the "literature survey" stage of a thesis, but in this case there was no choice. Most of Section 4.1 reports on results of two mail surveys of general ledger system users. Mail surveys can provide useful, unambiguous answers to simple questions, like "Do you have a computer-based general ledger?", but to gain an understanding of how today's systems work, and what they are intended to do, it was necessary to examine some specific systems in depth. Sources of information were first-hand experience with PC software, visits to user sites, and vendor's documentation. It was mainly through first-hand experience and reading documentation that some useful insights into the nature and purposes of computer-based accounting software began to emerge. These insights are discussed in Section 4.2.
4.1 An Overview of Computer-based Accounting Systems in Practice
Following Anthony [1965] and Keen and Scott-Morton [1978], computer-based accounting systems are usually
Chapter 4. Computer-based Accounting Systems: Practice
The previous two chapters attempted to identify the characteristics of "good" accounting systems by reviewing the normative and empirical literature. This chapter begins the right-hand branch of the four-chapter Requirements Determination process illustrated in the lower half of Figure 1.1: it surveys the present state of computer-based accounting practice; Chapter 5 reviews computer-based accounting systems theory. Opportunities and problems identified in this chapter should indicate areas for improvements in future computer-based accounting systems.
Despite the widespread use of computer-based accounting systems (see survey evidence in Section 4.1 below) there has been very little research into the features that make one system or suite of systems better than another. It was therefore necessary to conduct some first-hand empirical studies specially for this thesis. It is unusual to report original empirical research in the "literature survey" stage of a thesis, but in this case there was no choice. Most of Section 4.1 reports on results of two mail surveys of general ledger system users. Mail surveys can provide useful, unambiguous answers to simple questions, like "Do you have a computer-based general ledger?", but to gain an understanding of how today's systems work, and what they are intended to do, it was necessary to examine some specific systems in depth. Sources of information were first-hand experience with PC software, visits to user sites, and vendor's documentation. It was mainly through first-hand experience and reading documentation that some useful insights into the nature and purposes of computer-based accounting software began to emerge. These insights are discussed in Section 4.2.
4.1 An Overview of Computer-based Accounting Systems in Practice
Following Anthony [1965] and Keen and Scott-Morton [1978], computer-based accounting systems are usually