The Objectives of an Integrated Accounting Information System
Accounting information systems (AIS) is a business process that collects financial information from the company operations and funnels it into the company’s management decision system. The AIS is usually a computerized system comprising business and accounting software and computers. This automated system allows companies to collect and review information in a timelier manner than using the traditional, manual-style AIS. Companies may also be able to lower business costs by eliminating waste in the production process or limiting the number of hours workers are allowed to spend on one project.
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Integrate Accounting Functions
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Integrated accounting information systems collect management accounting information and financial accounting information in the same accounting ledger. Traditional accounting methods have separated this information between two accounting ledgers; management accounting is typically used by business managers for decision making purposes while financial accounting information is used by external users. Integrated accounting puts this information in one system so company accountants can reconcile the information and present a full picture to internal and external users of the company’s financial information. Using computerized AIS can help accountants complete this process quickly and accurately so managers can make timely business decisions regarding new opportunities.
Work with Current Systems
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The AIS should be able to work with current company software rather than around it. Business technology can sometimes be difficult to integrate and align when working with different systems or computer software modules. Integrated AIS is oftentimes sold as individual accounting modules, allowing companies to pick and choose which module it wants to implement in its current system. Common AIS modules include general accounting, cost allocation and accounts payable. These modules are typically used by both management accounting and financial accounting functions, helping companies to integrate these processes under one AIS module.
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Improve Information Collecting
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Integrated AIS modules should improve the company’s accuracy when collecting and reporting vital accounting information. The systems should be easy to work with and allow multiple employees to access the information as needed. Installing complicated software or technology can have a downward effect on employee productivity; more time should not be spent managing the system rather than the information collected by the system. Accountants may not be the most technological employees in an organization. Installing or implementing difficult AIS module or systems that cannot integrate with current business or accounting software may limit the accountant’s ability to gather and prepare accurate and timely financial information.
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