Accounting

Information System

By: Nurul Fatimah

STIE Ekuitas
 Components

High- Functions

AIS and value of

AIS and Corporate
Strategy

Definition

lights
Organization
Role of AIS in Value
3. AIS Chain
Give-get exchange

Transaction
Key Decision
Goal conflict

System
Goal Congruence
Transaction
processing Business Process AIS Overview

Data
2. Information
needs & Business 1. Introduction
Transaction cycles process

Information
Revenue

Expenditure
Value Usefulness
Production characteristics

Payroll Information
overload
Financing

Information
Technology
1. Introduction
What AIS is?

Accounting Information System

Recording

Classifying
Data

Summarizing

Fact “Two or more interrelated

components that interact to
Reporting
achieve a goal, often composed
of subsystems that support the
larger system”. (Romney &
Steinbart, 2015)
1. Introduction
What AIS is?

System

Sistem
Supra System Informasi
Manajemen

Sistem Sistem Sistem Goal Congruence

System Informasi
Akuntansi
Informasi
Eksekutif
Informasi
Produksi

VS
Sistem Sistem
Sub System
Penjualan Pembelian
Goal Conflict
“Two or more interrelated
Penerimaan components that interact to
Penjualan ElementKas
achieve a goal, often composed
of subsystems that support the
larger system”. (Romney &
Steinbart, 2015)
 1. Introduction
Information

Data

A fact could be a number, date, name, and

so on.
Fact
For example:
2/22/14
ABC Company, 123,
99, 3, 20, 60
 Value of Information

• Information is valuable when the benefits exceed the costs of

gathering, maintaining, and storing the data.

Benefit (i.e., improved decision making)

> Cost (i.e., time and resources used to get the information)

1-6
 What Makes Information Useful?

There are seven general characteristics that make information useful:

1. Relevant: information needed to make a decision (e.g., the decision
to extend customer credit would need relevant information on
customer balance from an A/R aging report)
2. Reliable: information free from bias
3. Complete: does not omit important aspects of events or activities
4. Timely: information needs to be provided in time to make the
1-7
decision
 What Makes Information Useful?

5. Understandable: information must be presented in a meaningful

manner
6. Verifiable: two independent people can produce the same
conclusion
7. Accessible: available when needed

1-8
 Organizational Decisions and Information Needed

• Business organizations use business processes to get things done.

These processes are a set of structured activities that are performed by
people, machines, or both to achieve a specific goal.
• Key decisions and information needed often come from these business
processes.

1-9
 Transactional Information Between Internal and
External Parties in an AIS

• Business organizations conduct business transactions between

internal and external stakeholders.
• Internal stakeholders are employees in the organization (e.g.,
employees and managers).
• External stakeholders are trading partners such as customers and
vendors as well as other external organizations such as Banks and
Government. 1-10

• The AIS captures the flow of information between these users for the
various business transactions.
Interactions Between AIS and Internal and External
Parties

1-11
 Basic Business Processes
• Transactions between the business organization and external parties
fundamentally involve a “give–get” exchange. These basic business
processes are:
– Revenue: give goods / give service—get cash
– Expenditure: get goods / get service—give cash
– Production: give labor and give raw materials—get finished goods
– Payroll: give cash—get labor
– Financing: give cash—get cash
1-12
 What Is an Accounting Information System?

• It can be manual or computerized

• Consists of
▫ People who use the system
▫ Processes
▫ Technology (data, software, and information technology)
▫ Controls to safeguard information
• Thus, transactional data is collected and stored into meaningful
information from which business decisions are made and provides
1-13

adequate controls to protect and secure the organizational data

assets.
• A well thought out AIS can addHow Does an
value through AIS Add Value?
effective and efficient decisions.
– Having effective decisions means quality decisions
– Having efficient decisions means reducing costs of
decision making

1-14
 AIS and Strategy
• An AIS is influenced by an organization’s strategy.
• A strategy is the overall goal the organization hopes to achieve (e.g.,
increase profitability).
• Once an overall goal is determined, an organization can determine
actions needed to reach their goal and identify the informational
requirements necessary to measure how well they are doing in
obtaining that goal.
1-15
 AIS in the Value Chain
• The value chain shows how the different activities within an
organization provide value to the customer.
• These activities are primary and support activities.
– Primary activities provide direct value to the customer.
– Support activities enable primary activities to be efficient and effective.

1-16
1-17
 Key Terms
• System
• Goal conflict
• Goal congruence
• Data
• Information
• Information technology (IT)
• Information overload
• Value of information
• Business process
• Transaction
• Transaction processing
• Give-get exchange
• Revenue cycle
• Expenditure cycle
• Production (conversion) cycle
• Human resource/payroll cycle
• Financing cycle
• General ledger and reporting system
• Accounting information system (AIS)
• Predictive analytics
• Value chain
• Primary activities
• Support activities
• Supply chain
1-18
Annual
Run Rate
(ARR)
$150,000 $10,000
REVENUE EXPENSES

(+30% from last month) Salaries, marketing, and office

50 50

40 40

30 30

20 20

10 10

0 0
Item 1 Item 2 Item 3 Item 4 Item 5 Item 1 Item 2 Item 3 Item 4 Item 5
50
$5,000 monthly
BURN RATE
40
20 months runway

30

20

10
$110,000
EBITDA

vs. $95,000 last month

0
Item 1 Item 2 Item 3 Item 4 Item 5
Traction 3%
CHURN RATE

vs. 5% last month

50

40

30
$2.89
20 CUSTOMER ACQUISITION COST

10
vs. $4.99 last month

0
Item 1 Item 2 Item 3 Item 4 Item 5
 50

150,000
40

30
ACTIVE USERS 20

(+15% from last month) 10

0
Item 1 Item 2 Item 3 Item 4 Item 5

50

110,000
40

30
PAYING USERS 20

(+20% from last month) 10

0
Item 1 Item 2 Item 3 Item 4 Item 5
 $30
Traction LIFETIME VALUE

vs. $11 last month

Other metrics you can track are monthly

recurring revenue churn (for Sass companies),
total user accounts, visit to sign up, and signup
to payment depending on your company’s 80%
industry. CONVERSION RATES

vs. 72% last month

Product Product strategy improvements

Updates
Update your investors with recent
innovations in your product.
New version and latest features

Better user experience anduser

interface
5 new hirethis month

Moved to a new office

Company Updates

1 signed partnership Keep your investors in the loop of recent changes

in your company.Big and small company progress
are worth sharing with your investors.
Additional Updates
Use this space for anything you like to share with your investors. Put these
extra updates after the critical ones on your product and company.
Add direct links if possible.

Press release Company Culture Fun Facts


Asks
Write the areas of your company
you need help with from your
investors. Be specific with your
needs.
Recruitment Referral
For anything you ask for
in your investor update,
For anything you ask for
in your investor update,
be sure to follow up on be sure to follow up on
them from your them from your
investors. investors.
Intros Feedback
For anything you ask for For anything you ask for
in your investor update, in your investor update,
be sure to follow up on be sure to follow up on
them from your them from your
investors. investors.
Summary
Wrap up your investor update in two to three bullet points.You may also
talk about your company’s next steps for new goals or milestones.If there
are other things you need help with or if you want them to know how
many more months are left before you need to raise money or start
making a serious profit, you can put them here.
Free
Resources
Use these free and recolourable
icons and illustrations in your
Canva design.