Accounting Information Systems. Examine the typical computer based information system used in your chosen area, how they support that business area and the benefits they bring both to that business area and the organisation as a whole.

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Information Systems

Accounting

Examine the typical computer based information system used in your chosen area, how they support that business area and the benefits they bring both to that business area and the organisation as a whole.

1.        Examine The Typical Computer Based Information System Used In Your Chosen Area        

1.1.        Introduction to Accounting informational Systems        

1.2.        What is the purpose?        

1.3.        What does it do?        

1.4.        How does it do it?        

2.        How It Supports That Business Area        

2.1.        Porter’s 5 Forces        

2.2.        Porter’s Value Chain        

2.3.        Advantages of using Information systems        

3.        What Are The Benefits That They Bring To That Business Area And To The Organisation As A Whole        

  1. Examine The Typical Computer Based Information System Used In Your Chosen Area

  1. Introduction to Accounting informational Systems

There are four different types of organisational levels. Operational is at the bottom of the triangle where it has the most sectors compared to Strategic, Management and Knowledge. Accounting, falls under the Operational level system. These are TPS’s or Transaction Processing Systems. A TPS is a “computerised system that performs and records the daily, routine transactions necessary to conduct the business” Kenneth C Laudon and Jane P Laudon. (1998). Transaction Processing Systems. In: Managment informaiton systems. 6th ed. p40.

Some examples of information systems used specifically in accounting are;

  • Microsoft Dynamics GP
  • Epicor
  • Sage Mas 90/200
  • Net suite
  • Intacct
  • SYSPRO

Although these are specific names of information systems, I shall be looking into the typical information system in accounting instead of one specific software.

  1. What is the purpose?

        The purpose of specifically an accounting information system is to process updates and new transactions which change the forecasts of cash flow and possible future transactions. It is crucial to note that an accounting system is in no way exclusive information for accountants but it flows through the company right to the different sectors. The information gained from the Operational level in accounting could find its way up to strategic level for them to make decisions based on the data.

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        It also can go out to stakeholders. These can be internal such as the previously mentioned decision makers or perhaps external like shareholders.

Muhammed, Z, (2009), Accounting Information Systems and Knowledge Management, Function of AIS, Issue 4, P38

  1. What does it do?

        An accounting information system has financial transactions entered into it and must be regularly updated to make sure it is accurate and factual. It passes on valuable data and information onto the other sections, for example Managerial. By letting the different sections of the Organisation triangle communicate each other’s information (in this case through the medium of ...

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