A good accounting information system (AIS) will help create, maintain, and distribute the financial reports as well as perform tasks in payroll, accounts receivable, accounts payable, inventory, and budgeting (Bagranoff, Simkin, & Norman, 2010). Management will be able to set up controls in the system allowing staff to have access to what is necessary and appropriate for their job. They will be able to call up and modify this information electronically without searching or filling out new paperwork. Data entry will be mainstreamed, allowing for less key strokes, and integration of information. This will allow for better accuracy in accounting and accounts will be able to be managed more efficiently, including processing of bi-weekly payroll. Payroll will then be sent directly to processing and reports to the correct managers. Accounts receivable will be able to track when customers use the POS system and update the sales information. Accounts payable will track when a vendor payment is due, allowing for payment processing, and appropriate management and accounting reports. The inventory system will be more accurate saving Kudler time and…
Accounting today is much more complex and difficult to understand than it has been in the past. Due to the increasing complexity Accounting Information Systems have been created to alleviate some of the pressures facing accountants. According to Frederick Jones and Dasaratha Rama (2006), Enterprise Resource Planning (ERP) systems are moving businesses from the functional approach to an integrated approach for managing transactions (p.684). Having knowledge and experience with the technological advances will help the accountant become more successful. Companies, such as CBU from the case study, must be able to effectively use technology to their advantage if they want to be successful in the future. The accounting staff of CBU must be able to develop more timely and effective system controls for future financial statement purposes and inventory audits.…
Turner, L. (2009) Accounting Information Systems: Controls and Processes. Hoboken, NJ: John Wiley & Sons, Inc.…
A.J. Filipovitch (2004). Financial Accounting. Krypton – Personal Website – Getting Started – Information and Technology Services – Minnesota State University, Mankato. Retrieved from http://krypton.mnsu.edu/~tony/courses/473/Financial%20Accounting.htm…
Fontinelle, A. (2011, March 2). Introduction To Accounting Information Systems. Retrieved May 26, 2015, from http://www.investopedia.com/articles/professionaleducation/11/accounting-information-systems.asp…
Johnston, R. P. (2003, Sept). A Strategy for Finding the Right Accounting Software. Retrieved 09 26, 2012, from…
Accounting technology is not new, and has been a part of calculating and tracking numbers throughout time. From Leonardo da Vinci who designed a device he labeled the “Codex Madrid” number machine to Blaise Pascal who invented the first early calculator to William Burroughs who created the first adding machine, those who specialized in numbers have sought ways of making the tasks of their profession or hobby much simpler. As time passed, more creations emerged to help accountants perform their expertise more accurately and faster. The first computer was built midway through the twentieth century. For the nearly 50 years that followed, huge computers designed to perform the simple task of calculating mathematical equations were eventually scaled down to fit on top of desks in consumers’ homes and offices. The world of accounting went from manually inputting data into a ledger to using electronic spreadsheets that eliminated the need for ledgers, calculators, pencils, and adding machines. Out with the hardcopy and in with the software.…
This essay briefly introduces the perceived threats of Computerized Accounting Information System and provides suggestions on how to prevent the occurrence of these potential dangers. Though the computer technology makes the accounting operation more accurate and faster, this still involves several threats in terms of the security and reliability of the accounting information. Fraudulent activities, management cheats, virus infection, costs and so forth, are all need precaution from the operation of the organization. However, proper selection of software, execution of internal control and other precaution measures may help relieve from the threats.…
New technology in information systems have bought significant changes in accounting profession, practices and processes. It has increased the efficiency and accuracy in accounting and has speed up the process for manual accounting tasks, but also improved security of accounting data and increased transparency. Large organizations and multinationals are changing over to this new information systems and technologies to carry out their accounting tasks on global basis. This information system has led to standardization not only among the different divisions, locations and offices of a single organization, but also on a global basis.…
A business may adopt computerise accounting system as the cost of using a manual one are high and less efficient. The business can easily set up the computerise system at a lower cost and this will cut the costs of the business.…
The accounting profession has been around in one way or another for as long as people have traded goods and services. As the transactions between people have become more frequent and complex the accounting profession has become more and more essential and the tools used to perform its functions have become increasingly advanced. For the most part, the days of writing every transaction in a journal and charting and adding accounts on manual charts is gone, replaced by integrated computer systems that often enter transactions into accounts with little or no user interface. These technological advances have…
1. Gelinas, Ulric J. Jr., Dull, Richard B., and Patrick Wheeler. Accounting Information Systems, 10th Edition. Cengage South-Western College Publication 2015. ISBN 978-1-133-93594-0…
Ever since Lucas Pacioli wrote about and spread the knowledge of double entry accounting in his “Summa di Arithemetica” in 1494, modern manual accounting was born (Hendrickson, 2007), though manual accounting has existed in many forms since ancient times. In contrast, computerized accounting systems are a more modern invention, as the first computer was invented between 1943 and 1946 (“Great Events in Accounting & Business History”, (n.d.)) and Arthur Anderson first computerized the payroll of General Electric in 1953 (“Great Events in Accounting & Business History”, (n.d.)). Powerful personal computers were not readily available to the average person until the 1980’s and 1990’s.…
Romney, Marshal B and Paul John Steinbart. 2008. Accounting Information Systems. 10th Edition. Prentice Hall.…
The Business Folio consists of two related phases. This scaffolding exercise aims to reach the learning outcome that you will be able to record financial information through both manual accounting information systems and computerised accounting information systems, and compare and consolidate your knowledge within both systems. You will be given structured instructions to set up a business, create your own Chart of Accounts, and prepare a set of transactions within a general journal. This forms the Business Information Introduction Phase. Based on the feedback from your tutors from this phase and supporting materials, demonstrations, instructions on computerised accounting system, you will then process the information that you created in the Introduction phase, through a computerised accounting system.…