Accounting Information

5/12/2023

rubaba noor
grade 8 green
0
Contents
What is an accounting information system?......................................................................................2
(Investopedia, 2022)...........................................................................................................................2
How come the accounting information system helps us?..................................................................2
for what, exactly accounting information system is used?.................................................................2
Some examples of accounting information systems:..........................................................................3
What are some of the advantages of accounting information systems?............................................3
What are some disadvantages of accounting information systems?..................................................3
Bibliography.......................................................................................................................................5

What is an accounting information system?

An accounting information system (AIS) is a structure that a
business uses to collect, store, manage, process, retrieve, and report
its financial data so it can be used by accountants, consultants,

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business analysts, managers, chief financial officers (CFOs),
auditors, regulators, and tax agencies.

(investopedia, 2022)
How come the accounting information system helps us?
The purpose of an accounting information system is
to collect, process, and report information relating to the
financial aspects of the company's business activities.
(Meiryania, 2020)

for what, exactly accounting information system is used?

This financial data is useful for users of accounting
information systems for reporting financial information to
Owners/Shareholders, Managers, Prospective Investors,
Creditors, Bankers, other Lending Institutions, Governments,
etc. (toppr.com, 2022)
Some examples of accounting information systems:
Examples include payroll and time-tracking platforms,
invoicing systems, payment processing systems, accounting
software, and IT hardware and infrastructure.
(accounting.com, 2023)

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What are some of the advantages of accounting information
systems?
Computer-based accounting information systems have
several advantages, including the
ability to automate and streamline
reporting, generate advanced
modeling, and allow data mining.
Organizations use reporting to get
accurate, timely information that
they may use for decision-making and financial reporting.
(Accounting, 2022)

What are some disadvantages of accounting information systems?

 #1 – Initial Cost of Instalment and Training – While

we discussed that an AIS is cost-effective, the same
may not be accurate in the case of small business
enterprises. The initial setup cost may be high and may
not generate value for the organization.
 #2 – Manual Intervention – Although we discussed
that AIS reduces manual intervention, the same cannot
be eliminated. AIS needs manual intervention at a
certain point, which may bring inefficiency to the
system.
 #3 – Error Cannot be Completely Eliminated – We
discussed that AIS reduces the chances of error, but
there are chances of wrong coding in software, which
may lead to error-prone results. Also, manual
intervention is still present here, generating an error.

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 #4 – Confidentiality – Although we discussed the
portability of AIS data, the same can also be disastrous
for an organization If such information is hacked, i.e.,
stolen. An intruder may amend the information or can
disclose sensitive financial information.
 #5 – Virus Attack – Any data stored on IS can be
infected with a virus that may disrupt and modify
financial information stored on AIS.
(wallstreetmojo, 2023)

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Bibliography
Accounting, I. J. (2022). International Journal of Accounting. united states.

accounting.com. (2023). accounting.com. James M.tobin.

investopedia. (2022). investopedia. Amy fontinelle.

kindness, D. (2022). Investopedia. Amy fontinelle.

Meiryania. (2020). usefulness-of-accounting-information-systems-for-businesses.pdf. Systematic

Reviews in Pharmacy, 2054.

Research, I. J. (2022). International Journal of Accounting Research. Minnesota State University.

toppr. (222). toppr.

toppr.com. (2022). toppr.com.

wallstreetmojo. (2023). wallstreetmojo. pranjal jain.

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Thank
You!