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This report will be examining the typical computer based information system used in accounting and how they support the accounting business area and the benefits they bring both to that business area and the organisation as a whole.

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Introduction

TABLE OF CONTENTS 1.1 Introduction 2 1.2 What Information Systems in Accounting are About 2 1.3 Objectives and Users of Accounting Information Systems 3 1.3.1 Supporting day-to-day operations 3 1.3.2 Supporting Internal Decision-Making 5 1.3.3 Help fulfill Stewardship Role 6 1.4 Typical Accounting Information Systems packages 6 1.5 Accounting Information Systems software modules or subsystems 6 1.5.1 General Ledger 7 1.5.2 Accounts receivable 7 1.5.3 Accounts Payable 7 1.5.4 Fixed Assets 7 1.5.5 Sales Order Processing 7 1.5.6 Purchase Order Processing 8 1.5.7 Inventory Control 8 1.5.8 Payroll 8 Conclusion 9 1.6 Appendix 1 12 1.7 Appendix 2 13 1.8 Appendix 3 14 1.9 Appendix 4 15 1.10 Appendix 5 16 1.11 Appendix 6 17 Business Information Systems Report 1.1 Introduction This report will be examining the typical computer based information system used in accounting and how they support the accounting business area and the benefits they bring both to that business area and the organisation as a whole. The following areas will be examined: * What Information Systems in Accounting are About * Objectives and Users of Accounting Information Systems * Typical Accounting Information Systems packages * Accounting Information Systems software modules or subsystems * Benefits of Using an Accounting Information System 1.2 What Information Systems in Accounting are About Wilkinson, et al. (2000) say that an accounting information system (AIS) ...read more.

Middle

1.3.2 Supporting Internal Decision-Making Accounting information systems second objective is to provide information for decision making. Decisions such as controlling & planning business operations, these activities can broadly be labeled information processing (Wilkinson, et al. 2000). An example of this would be a business company using its accounting information system for vital information processing tasks such as projecting expected revenues for the coming year (Wilkinson, et al. 2000). The business company can then use this information to do necessary planning, for example it can decide on whether they can afford to take on more employees to carry out the added workload. The accounting information system would usually provide some information needed in such decision making through the transactions that it processes (Wilkinson, et al. 2000). The managers of a business are the primary decision makers who use the outputs from the information processing, secondary users such as costing department who influence buying or selling could also use this information (Wilkinson, et al. 2000). The manager may use some form of management information system that allows him to use the data from the accounting information system. The two systems maybe integrated using Enterprise Resource Planning. 1.3.3 Help fulfill Stewardship Role Every business must carry out its legal responsibility, e.g. providing mandatory information to its users who are external to the firm (Wilkinson, et al. ...read more.

Conclusion

Extensive information is maintained for each employee, including date of birth, emergency contacts, review dates and comments, marital and tax status, year-to-date earnings and deductions, as well as vacation, sick days and other benefit accruals. (2020software.com n.d.) Accounting information systems may vary slightly from one package to another, they may have additional modules or subsystems, different user interfaces but more often then not, they will have the above mention modules or subsystems as these are essential to the accounting information system. Conclusion From the report carried out, many different aspects of accounting information systems have been explored including: the primary aim of accounting information systems, users of accounting information systems, the main objectives of an information system and how these objectives are beneficial to the accounting sector and to an organisation. It has been looked at how accounting & non-accounting transactions are recorded and processed using the accounting information system's subsystem modules. From all the analysis of the accounting information system we can conclude that the benefits and uses of using an Accounting Information System are to: * Process data generated by and about transactions * Maintain a high degree of accuracy * Ensure data and information integrity and accuracy * Produce timely documents and reports * Increase work efficiency * Help provide increased and enhanced service * Help build and maintain customer loyalty * Achieve competitive advantage (York University: PowerPoint n.d. ...read more.

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