Accounting Paper

2082 Words Aug 16th, 2013 9 Pages
Introduction: With the changes in businesses becoming more global and consumers buying online in greater numbers, the rapid and accurate flow of information is vital to accountants. This is where AIS or Accounting Information Systems come in, this practice was originally handled “in house” by most businesses, but as technology changed and businesses became more web based, software packages from developers such as Microsoft and Oracle are sold to assist businesses with their accounting needs. AIS was developed for the collection, storage, and processing of financial and accounting data. In most organizations A.I.S. are made up of interrelated components that interact to achieve a common goal. Throughout this paper we will look at the …show more content…
Information systems are what companies rely on to provide adequate and necessary information to make decisions. AIS are used as a tool designed to help in the controls related to organizations financial areas. There are many different types of AIS, yet there is no specific way for a company to do their accounting. As long as companies are disciplined and compile all the facts, the accounting method may vary. It is very important for companies to identify and collect meaningful information in order to make important business and financial decisions. Advancements in information and communication technology have made decision-making processes better for management because now it is possible to improve and constantly upgrade the accounting information system. (Pierce, O'Dea. 2003) It is important for companies to reach a common ground between AIS, management, executive functions and external users. This is vital for compatibility of all functions in the company to be established. If a common ground is achieved, coherence between management and accounting information systems leads to the simplification of business and financial decisions. (Granlund, 2011)
What do the AIS really do? The AIS has many different functions but the most important task of the AIS is dealing with the following. * Recording monetary forms of business events * Data processing and drawing account reports * Publishing financial statements with financial communities In

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