Accounting Information Systems in Practice

1.0 Introduction

The concept of “Accounting as an Information system (AIS)” is considered to be effective for collecting, analyzing and storing financial as well as accounting data that are used by the decision-makers. It is basically a method that is computer-based that can be used for tracking the different activities of accounting using various IT resources. It also helps in performing complicated managerial accounting using a set of standards. The different types of data that might include in "AIS" are sales-order, vendor invoice, payroll information, Customer billing information and many others. FIS is a type of ERP that provides banking solutions as well as the Capital market solutions to the number of clients. Orderwise is another type of ERP that helps in managing the different operations in retail, manufacturing and pharmaceutical sectors. Zoho Books is also an online accounting software that helps in managing finances as well as keeps GST compliant for a different company. The report will discuss different accounting technology that can be used by the organization as well as the difficulties which can occur through it.

2.0 Discussion

2.1 Importance of Information system to effective accounting

The primary advantage of using the information system is that they accurately automate streamline reporting and also records all the transactions that can occur in business. The information system helps the accountant to prepare and analyze the budget as well as the financial statements (Ahmad and Al-Shbiel, 2019). The information technology helps in errorless tax filling and then examines the actual records or percentage of accuracy. The accountant can develop advanced model as well as can keep backup for all the data without thinking much about security and privacy. [Referred to Appendix 1]

2.2 Application of new technology to the work of an accountant

FIS Software: The FIS accounting software provides the finance professionals like accountant the ability for flexible preparation of financial statements. It also helps in building budgets and respective forecasts. The tracking of resource allocation can also be done through it (Al-Dmour and Al-Dmour, 2018). The data can easily get imported as well as the reports can easily get accessed through it. The issues which the accountant faced with the data storing and security is resolved using FIS software as it provides easy storage and security to information (fisglobal.com, 2020).

Orderwise Software: The Orderwise software provides accurate profitability analysis with the optimal cash flow forecasting and the automatic posting of the invoice. It will help the accountant to create financial report which includes all the profit and loss statements, Balance sheets as well as the trial balance of the company(Alewine et al. 2016). The software is capable of handling millions of transactions with less probability of any errors (Al-Hawari, 2017). Initially, there are many organizations in which the accountant uses to prepare invoices as well as profit loss statements manually and thus it was time-consuming. These problems can be solved using Orderwise software within time (orderwise.co.uk, 2020). [Referred to Appendix 2]

Zoho Books Software: This software helps the accountant of the company in creating and sending retailers and customer invoices. It helps in dealing with the daily process of accounting like creating journal entries, preparing income expense-sheets and many others (Diatmika et al. 2016). The accountant now does not have to wait for sending the invoice anywhere as they can generate and send within a shorter span of time through this application (zoho.com, 2020).

2.3 Difference between types of AIS

The different types of AIS according to the mode of processing can be summarized as below

Batch Processing System: In this type the user enters the transaction into a group of accounting reports and it can be done by running the batch process daily or weekly.

Online Batch System: The online batch system can be the same as that of the Batch-processing system except the transactions are recorded using online based accounting software like Zoho Book, FIS and many others (Diatmika et al. 2016).

Online real-time system: It basically integrates the transaction into the accounting-record using the software once the user records it (techwalla.com, 2020).

2.4 Issues faced by the organization is using a different system

The primary issue that can be faced by the organization while implementing the systems like FIS, Orderwise and Zoho Books is that there needs accurate training for all the staff. The application is difficult to be understood by users who are not that trained about the services and tools that it offered (HEMAIDA et al. 2017). The training can be expensive which most of the financial organizations cannot afford and it requires proper training as if they are not trained then it can be difficult for the staff to implement it practically (Sari, 2018). Another issue is related to security as all of them are working on a cloud platform and hence there is the chance that the data or essential information can be stolen by the attackers (Lutfi et al. 2016). Therefore the privacy can be kept in danger if the user does not encrypt or protect the data which will be shared through the application (AL-yasar et al. 2019).

2.5 Decision-makers strategy to look for a better system

The decision-maker needs to understand which system provides flexibility as well as adaptability to any critical condition. There might be some condition in which the organization has to handle and implement a large number of activities through the application and if the application failed to perform accurately then it can have an impact on the performance of the organization (Popivniak, 2019). Thus the factor like which system has sufficient capacity to handle multiple numbers of financial activities without any errors and in deadline must be chosen by organization (Trabulsi, 2018). It is better to compare that among FIS, Orderwise and Zoho Books which can be more capable and productive in producing the task within minimum time (Taiwo, 2016). The cost analysis as well as the resource comparison must also be done to check which among all the systems are having better resources and also can be affordable by the organization (Wadasadawala, 2020).

3.0 Conclusion

The information system plays a key role in performing different activities of accounting by the accountant within an organization. It enables the accountant to generate an invoice as well as create financial reports only with less probability of errors and also helps accountants in creating a budget within the deadline. The different software like "FIS", "Orderwise" and "Zoho Book" can be used for the financial accounting but it needs effective training to staffs to implement this system in the organization. Thus if the staff or user are not trained effectively then they will be unable to perform any activities perfectly in this software.

Reference list

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