Information System in Accounting Samples †MyAssignmenthelp.com

Question: Discuss about the Information System in Accounting. Answer: Application of Information System in Accounting Accounting Information system refers to a tool which collects, processes, store and distributes accounting information which can then be used to take financial decisions, forecasting and investment decisions. Accounting Information Systems generally utilizes computer appliances to run and function effectively (Hall 2012). Nowadays Accounting Information System have really become popular in business and most of the businesses utilizes such a system. The system depends on the nature of the business, volume of transactions taking place, organizational structure of the company and other similar factors. Generally, businesses use Enterprise Resource Planning (ERP) Systems, Integrated Packages of Computer programs, System software like tally, excel, Cloud Computing. Impacts on Accounting Practices As the traditional method of recording transaction are no longer in much use, the new information systems in accounting have positive impacts on the whole accounting process. The most basic impact is that the it has simplified the whole of accounting process (Sajady, Dastgir and Nejad 2012). With the change of one entry all the necessary changes happen automatically in case of accounting information system such as ERP and other computer system software. Moreover, with the introduction of information systems in accounting procedures there has been an ease in operations where most of the critical work are done by the system and software and the results can then be printed out. In addition to this there is accuracy in the calculations provided the inputs are correct and there is no omission. In order to fully take advantage of such new software and system, accounting professional needs to have adequate knowledge of the software or system which they are or will operate. Therefore, accoun ting professionals needs to train themselves in information systems which is used by the company. Moreover, accounting professionals needs to have full knowledge of the system they are operating in order to solve any problems which may arise and get the desired results. References Hall, J.A., 2012.Accounting information systems. Cengage Learning. Sajady, H., Dastgir, M. and Nejad, H.H., 2012. Evaluation of the effectiveness of accounting information systems.International Journal of Information Science and Management (IJISM),6(2), pp.49-59.