The Technology for an Accounting Information System
Accounting information systems (AIS) range from PC (personal computer) based accounting systems to mainframe systems used by large corporations with intricate accounting operations. Accounting information systems can use various operating system platforms (Windows, Linux, UNIX, OS2 and Open Source software), but the basic components of an accounting system are created and programmed according to GAAP (Generally Accepted Accounting Principles).
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General Ledger Automation
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General ledger accounting is the heart of an accounting information system. The general ledger is classified as the "item" record or main data file of the system. All transactions in an accounting system revolve around the general ledger. The general ledger also reflects changes to accounts when transactions are initiated.
Technology for Mainframe Systems
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Mainframe accounting systems are configured for distributed processing over a large environment of users which may have to access item or detailed accounting records as end user, programmers or mid level management. Mainframe accounting systems can allow remote processing terminals access through a data network or via satellite. Software at this level for an accounting information system can be customized by in-house program developers or a specialized package designed by a company, such as IBM-bundled with the purchase of an IBM server dedicated to accounting functions.
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Technology for Mid-Range Systems
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Mid-range accounting information systems use server based technologies. An example of a server base technology operating system is a UNIX or Windows 7 configuration with 64-bit processing. The server acts as the main unit or "mainframe," but at a smaller capacity. On this type of accounting network, there can be up to three servers providing resources for users on the network to access accounting applications.
The procurement of software for the system is usually from a software vendor that specializes in accounting packages for this type of configuration and offers an annual maintenance contract. Mid-range accounting information systems can provide processing capabilities for 50 users.
Technology for LAN or PC Based Systems
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For small accounting information system needs, a Local Area Network (LAN) or PC-based configuration is sufficient for a small organization or businesses, which use accounting applications. LAN and PC based systems support sharing of data and resources over a dedicated network between end users and managers.
LAN and PC based systems are excellent configurations for "turnkey software" (software which is pre-programmed and packaged) such as QuickBooks Pro Enterprise Version and Peachtree Accounting. The only drawback to this type of accounting information systems is there is no customization of programming with the exception of creating reports. This accounting information system can be effective for up to 20 users and cost wise, is the cheapest to implement.
Software Integration Modules
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Accounting information systems at the mainframe level can have specialized third party programs written or implemented into the system. For example, an accounting system designed for retail management can have a catalog on programs on the system for inventory and stock management. Third party designs can range from research and development accounting to mortgage "Rule of 78" accounting programs. These "add- ons" can be expensive. Midrange and LAN-based/PC systems have standard configurations and don't allow much software integration.
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