Essay on Accounting Information Systems

1440 Words 6 Pages
Managers have to make decisions everyday to solve problems, sometimes during period of crisis and uncertainty, when the pressure is enormous, Sayegh (2004). In order to make a decision they need to evaluate the situation before they can make an effective decision.
This process can be very long and exhausting; it can go on for weeks and even months before all the information needed is gathered.
It takes long time and much effort to get the right information because the process starts in gathering data, sometimes a very large amount of data.

According to Hall (2011) data are facts, nevertheless, they have no direct effect on the users while Information have a direct effect on users so that users have to take an action.
The most
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The internal information can be financial or non-financial. The financial one includes costs and revenues while non-financial contains other information.
External information includes output, number of employees, and number of items in stock.

Role and purpose of Accounting Information Systems (AIS)

It is easier to understand Accounting Information Systems is if the expression is analyzed word by word: accounting: language of the businesses as Warren Buffet said; information: filtered and elaborated data essential in order to make right decisions; systems: a set of elements.
“An accounting information system is a collection of data and processing procedures that creates needed information for its users”, Bagranoff et al (2008 pag.5).
Now it is possible to say that AIS is a set of elements (for example, software and computer) used by a business to store and elaborate data in order to produce information useful to the business.
The purpose of AIS is to give businesses information which is crucial in decision-making and in supporting businesses day-to-day operations. “It was the purpose of the first information systems to automate the process of, for example, posting transactions to journals and sorting the transactions according to the chart of accounts of the general ledger”, Rom, Rohde (2007 pages 40-68) .

There are systems made in house and systems bought on the market. Big companies prefer to build

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