Factors in a Management Accounting Information System

Accounting information systems help a firm report accurate operating data.

Companies integrate accounting information systems in corporate operating processes to boost productivity and measure economic performance. These systems also help senior management ensure that personnel abide by accounting principles when reporting financial statements.

Identification

A management accounting information system consists of computer hardware and software that a company deploys to record and report transactional data. The system helps the company prepare financial statements, including balance sheets, statements of profit and loss, statements of cash flows and statements of retained earnings.

Factors

Various factors impact an organization's management accounting information system, both externally and internally, says accounting information system specialist Hongjiang Xu. External factors include industry practices, regulatory guidelines and accounting principles. Internal factors include corporate financial policies, internal controls, budgeting mechanisms and accounting reporting schedules.

Significance

Accounting information system factors play a key role in corporate decision-making, enabling senior management to accurately assess a company's financial performance and improve operating activities, say Maija-Leena Huotari and T.D. Wilson, information management lecturers at the University of Tampere and the University of Sheffield, respectively.

References

• Information Research: Determining Organizational Information Needs
• University of Southern Queensland: Critical Success Factors for AIS Data Quality