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Chapter 2

Accounting information systems are computer-based systems that collect, store, process, and communicate financial and accounting data through financial statements to support organizational decision making. They contain interconnected resources like humans, equipment, and finances that work together within a framework to achieve organizational goals. An accounting information system collects, analyzes, and converts data into useful information for employees, owners, and other stakeholders. It provides authorized people with timely data and information about an organization's operations. A key component of an accounting information system is its transaction processing, general ledger/financial reporting, fixed asset, and management reporting subsystems.

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124 views

Chapter 2

Accounting information systems are computer-based systems that collect, store, process, and communicate financial and accounting data through financial statements to support organizational decision making. They contain interconnected resources like humans, equipment, and finances that work together within a framework to achieve organizational goals. An accounting information system collects, analyzes, and converts data into useful information for employees, owners, and other stakeholders. It provides authorized people with timely data and information about an organization's operations. A key component of an accounting information system is its transaction processing, general ledger/financial reporting, fixed asset, and management reporting subsystems.

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kudakwashe manwa
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© © All Rights Reserved
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2.

1 ACCOUNTING INFORMATION SYSTEMS


Accounting information system according to Manchilot (2019) may be a computer-based
electronic system used for collecting, storing, processing and communicating financial and
accounting data through financial statements with the aim of supporting and guiding
organizational decision making process. Computers are the center of accounting information as
they provide a platform for the working process of all information systems. For an accounting
information system to be operational, its appropriate software application must be on the
computer system intending to be used. Borhan and Bader (2018) defined accounting information
system is a system which contains a group of harmonized business, components, and resources
which processes, manage, and control the data for producing and carrying the relevant
information for decision makers in the organization. Accounting information requires series of
processes to carry out its function just like any other system. It is a connected and homogeneous
set of the resources and different components (human, equipment, finance, etc) that interact
simultaneously inside a specific framework to work towards the achievement of organizational
goals. According to Borhan and Nafees (2018) accounting information system is the process of
collecting, analyzing and converting data into action. This definition justifies accounting
information system as a computer based system that collects data, process and analyses data and
produces results or output. Kashif (2018) states that accounting information system is a
combination of people, equipment, policies, and procedures that work together to collect data
and transform it into useful information. AIS is a system that provides people with either data or
information relating to an organization's operation to support the activities of employees, owners,
customers, and other stakeholders in the organization's environment by effectively supplying
information to authorized people in a timely manner.

2.2 partially implemted accounting information systems


2.3 manually accounting processes
2.4 relevance of accounting information system
Comoponents of ais
Subsytems of ais
Hall (2008) states that an AIS comprises four major sub-systems including: • The transaction
processing system, which supports daily business operations with numerous documents and
messages for users throughout the organization; •
The general ledger/financial reporting system, which produces the traditional financial
statements, such as income statements, balance sheets, statements of cash flows, tax returns, and
other reports required by law; •
The fixed asset system, which processes transactions pertaining to the acquisition, maintenance,
and disposal of fixed assets, and •
The management reporting system, which provides internal management with special purpose
financial reports and information needed for decision making, such as budgets, variance reports,
and responsibility reports.

Organisational performance
Indicators of organizational perfomance
Ais and organizational performance
Benefits of partally used ais
Drawbacks of partially used ais

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