Discuss About The Building Corporate Accountability Practice.
Accounting information system is the technological procedure of tracking accounting activities in conjunction with the resources of information technology. This technological process primarily collect, store and process financial data used by the internal users. With the gradual economic swing of market and competitive market threat business organizations focus on developing their internal resources in order to make the entire operation of business more systematic and dynamic. The emergence of accounting information system has rendered a radical change on the overall performances of business organization (Laudon & Laudon, 2016). Accounting information system not only provides an effective overview about the financial statement. This very specific method plays the role of an analysis tools. For an example, the database that is created though AIS is able to give vast vista about the profit, loss, or balance of the business organization.
In quest of maintaining the chronological data of finance the business experts initially intended to hire large number of human resources within finance department. The implementation of accounting information system has made the entire business method more systematic. The data gathered from AIS is not human created. Therefore, the business experts can get accurate and intact data from AIS. This accuracy of data and information leaves a major positive impact on the overall success of the organization (Speklé & Verbeeten, 2014). The organizations do not have to invest large amount of money behind labor force. In addition, the entire service process of AIS is fast and accurate which resulted a positive impact on organizational performance. This very specific study has focused to make detailed overview about the impact of accounting information system in organizational performance. At the same time, it is undeniable that some of the business organizations are there, which are still unable to implement AIS, due to some constraints.
The primary objectives of this specific project are as follows:
The primary goal of this project is to evaluate the impact of accounting information system in overall organizational performance. In order to accomplish this very specific project the researcher would have to face several constraints in collecting appropriate data and information from the respondents due to their lack of knowledge in this specific research area. Still the project is expected to be successful due to its synchronized execution. The budget of the research would have to be high in terms of data collections and resources. The entire project timeline should be vaster in order to gather sufficient information from various responses. If the researcher can maintain an appropriate ethical consideration, while collecting necessary data and information from the respondents the entire project has enough scope to be successful. Ethical consideration implies following data security act, data protection act, keeping up the freedom of participants and so on.
Accounting information system incorporated within information technology is the tool that helps the management in controlling the financial areas. Collecting financial data and storing these data for making the decision of financial executives and auditors are primary function of accounting information system. Accounting as opined by Franco-Santos et al., (2012), could be identified among three components including information system, language of business and source of financial information. Source of financial information is the primary concern for every single business experts of different organizations. Financial information is transformed to data and this data is presented in front of the finance heads for making effective decision regarding the profitability of business. AIS (accounting information system) is the combination of methodology, accounting technique and technology for IT industry.
Libby (2017) stated that the primary function of this specific method is to track transactions, provide internal reporting data, external reporting data, financial statements, and trend analysis capabilities to affect on organizational performance. At the initial stage of business scenario, the organizations had to face immense challenges in maintaining their financial statement within accurate data. Based on the financial statement the decision making process of business experts are highly dependent. As the business experts are not very much focused in maintaining the advancement of technology they failed to deliver accurate financial data. However, implementation of accounting information system has rendered immense accuracy in financial data, balance sheet and keeping a transaction tracks.
Christensen and Feltham (2012) emphasized in this context that accounting information system is endowed with numerous advantages based on which the organization can keep a constant data about their financial record. Accounting information system has made the entire business process more systematic. The business experts are easily able to keep a chronological data record by using this information system. As a result, business managers do not have to face challenges in getting an overview about the financial database. However, most significant advantages of advantages of accounting information system are as follows:
This particular method is reliable enough for business organizations in maintaining financial data record. Worrell, Wasko and Johnston (2013) opined that if the business managers have any doubt about the figure mentioned in the data record the person can verify the data with proper documentation. This specific method can give a detailed overview on how the data is calculated. In most of the recognizable accounting department reconciliations within the accounting system are made in order to assure reliability and accuracy of information.
Accounting information system not only provides an effective overview about the financial statement. This very specific method plays the role of an analysis tools. For an example, the database that is created though AIS is able to give vast vista about the profit, loss, or balance of the business organization. Laudon and Laudon (2016) stated that the managers do not have to be dependent on the exact figure. They event do not have to analyze the data from their own mind. The entire financial gaps, gross profit, scope of improvement are categorically mentioned within the method of accounting information system. As a result, it is very much beneficial for the organization in maintaining detailed evaluation about the business profitability.
As pointed out by Collier (2015), technological devise cannot be the substitute of human mind. Despite having several benefits of using accounting information system human resource is the most effective path of evaluating financial data. The decision making process of the business experts also become very strong and logical. However, Speklé and Verbeeten (2014) has strongly differed the opinion of previous scholar. Human resource would never be able to process the entire database within this limited time that an information technology system is able to do. As a result, business experts are able to make their entire process of business more dynamic and systematic. Based on the financial data record the organizational managers have to make their own strategic decision. Caniëls and Bakens (2012) opined that the retail business industry in the global market is very much dependent on accounting information system in order to maintain their chronological data record effectively. However, this very specific study has focused to provided detailed analysis about the impact of accounting software on the overall performance of business. Woolworths being one of the most prestigious retail brands of Australia tends to publish their financial statement by using this method of AIS.
Numerous eminent scholars have provided their own point of view while evaluating Impact of accounting information system on organizational performances. Popovi? et al., (2012) opined that AIS has left immense positive impact on organizational performances. The primary impacts that accounting information system leaves on the overall performances of business are as follows:
The primary functions that are controlled with the help of AIS process include budget preparation for expanding the entire business process. Based on the internal resource, cash, rate of organizational debt and procurement the budget of the organization is prepared. Flamholtz (2012) opined that AIS primarily collect the raw data on how much debt the organization is currently dealing with. Based on that very specific data and information the organization would like to focus on monitoring and auditing their entire database. AIS primarily helps to make the entire internal audit within stipulated time by maintaining the accuracy of data. As a result, the business experts do not have to face challenges in getting overview about the ways of their improvement.
Kleis (2012) stated that AIS helps to store the entire financial database chronologically which gives a detailed overview to the organizational about their way of success. This particular technological method can present the data and information from every year. If the business experts need to go though the audit report three years before, AIS can easily store that data and information. As a result, organizational managers can evaluate their performance record. Based on the previous year performances, the managers aim to give better performance in comparison to the last year. As a result, it ultimately enhances the performance level of the organization.
Implementing accounting information system within the organization is a matter of big expense that the organization may not have. On the other hand, it is also undeniable that accounting software is one time investment. Galliers and Leidner (2014) opined that if the business experts tend to invest money behind this resource for once the organization would be able to reduce the labor cost. As a result, the budget saved from the cost of labor can be utilized in business expansion. Ultimately, the organization faces positive impact after implementing AIS within the operation system.
Accounting information system is effective enough in maintaining data accuracy as well as chronology. The data gathered from AIS is not human created. Therefore, the business experts can get accurate and intact data from AIS. Chae, Koh and Prybutok (2014) opined that this accuracy of data and information leaves a major positive impact on the overall success of the organization. Business managers get proper and accurate data about the financial and business profitability. Based on that data the managers tend to estimate their budget for business expansion and promotional activities. In this kind of situation, the organization would not have to face immense challenges in reaching the organizational goal. Lunardi et al. (2012) opined that if the estimated budget would be high in comparison to the financial profit, the organization may have to face immense challenges in rendering success. However, implementation of AIS has made the financial database chronological and systematic. As a result, the organization can easily maintain their business sustainability.
After evaluating the point of views of different conspicuous scholars, it has been observed that accounting information system has immense positive impact on organizational performance. At the same time, it is undeniable that some of the business organizations are there, which are still unable to implement AIS, due to some constraints:
Economic constraint is one of the most significant factors due to which business organizations are unable to implement AIS method. Yigitbasioglu and Velcu (2012) stated that in order to implement this information technology within organizational devices and to maintain its updated method the business experts have to bear large amount of money. As a result, organization may not be successful to afford that much amount within business process.
Moser and Martin (2012) stated that lack of proper technological skill and competency is one of the most effective factors based on which employees fail to maintain proper database even after implementing AIS. Large number of senior employees is there within the organizations who are not accustomed with the advancement of technology. As a result, they have to face challenges in maintaining proper database by using advanced technology. As a result, the entire delivery of services become very much delayed.
If the organization has to face any kind of technological crisis, the business experts would have to face innumerable challenges in getting organizational data. Accounting information system cannot be run successfully without a proper configured device. As a result, technological error can stop the entire flow of business. Drury (2013) opined that the business managers are unable to get appropriate data and information at their required time. As a result, both the customers and the service providers have to face challenges in maintaining an effective rapport. Managers would have to struggle in gathering financial data properly due to this technical error.
After evaluating a critical analysis, it is observed that business experts may not be efficient with the advancement of technology. Fullerton, Kennedy and Wideners (2014) opined that appropriate executive of technology would be challenging for them. As a result, organization has to suffer in maintaining financial database. In this kind of situation, the study has focused to recommend some of the most effective ways of overcoming these challenges. However, appropriate training and development session may help the employees in getting in-depth knowledge in this very specific sector. Yu, Duan and Cao (2013) stated that organization can hire a professional expert who would help the employees in enhancing their technological competency.
The study has focused to provide detailed overview about the impact of accounting information system on the overall business enhancement. It is observed that with the gradual economic growth of market and competitive market threat business organizations focus on developing their internal resources in order to make the entire operation of business more systematic and dynamic. The study has analyzed some of the most effective advantages of AIS. Accounting information system has made the entire business process more systematic. The business experts are easily able to keep a chronological data record by using this information system. As a result, business managers do not have to face challenges in getting an overview about the financial database. Still, this very specific literature review is not devoid of some of its major limitations. The study has evaluated some of the most effective barriers for implementing AIS within the business process. The article after identifying the barriers has not provided some of the major recommendations on how the organizations would be able to overcome those barriers.
Conclusion:
The entire study has given detailed overview about the impact of accounting information system in overall organizational performance. After conducting an in-depth literature review by involving the numerous eminent scholars it can be concluded that accounting information system has immense positive impacts in overall organizational performance. On one hand, the implementation of this process can help the business experts in reducing their cost behind human resources. On the other hand, the emergence of accounting information system has made the entire process of business more systematic and rhythmic. The organization does not have to face challenges in maintaining the database.
The primary issues that the business experts have to face after implementing this accounting information system is the way of proper execution. The business experts may not be efficient with the advancement of technology. In the kind of situation, appropriate executive of technology would be challenging for them. As a result, organization has to suffer in maintaining financial database. In this kind of situation, the study has focused to recommend some of the most effective ways of overcoming these challenges. Implementation of training and development session for the employees in order to enhance their technological competency is the most effective ways of resolving the issues. However, for accomplishing this very specific project the researcher would have to face several constraints in collecting appropriate data and information from the respondents due to their lack of knowledge in this specific research area. However, appropriate training and development session may help the employees in getting in-depth knowledge in this very specific sector.
Reference List:
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Chae, H. C., Koh, C. E., & Prybutok, V. R. (2014). Information technology capability and firm performance: Contradictory findings and their possible causes. Mis Quarterly, 38(1), 305-326.
Christensen, P. O., & Feltham, G. (2012). Economics of Accounting: Information in markets (Vol. 1). Springer.
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