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The Accounting Information System Technology Information Technology Essay

Paper Type: Free Essay Subject: Information Technology
Wordcount: 2214 words Published: 1st Jan 2015

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According to Beynon-davies p.(2009). ” information systems inter-relate with data systems on the one hand and activity systems on the other. An information system is a form of communication system in which data represent and are processed as a form of social memory..” Information is a vital resource to all organizations and an important ingredient in organization’s day-to-day operation. Information system is the basic support and the distinguishing mark for a modern organization. Information system takes important roles in the modern organizations.

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3) Objectives of information systems:

The objective of information system is developing and managing distributed systems , planning and managing net works. Information systems use the computer hardware, software, network communication devices and other office facilities to collect, transfer, process, store, update and maintain data and information in order to support the strategic planning, management control and tactical planning, and operational control in the organization’s operation.Each Information system has different functions and the different function is linked to each other to form an organic system as a whole in a modern organization.

2) Information System Strategy:

The Information Systems Strategy is a part of the business strategy.  It require resources and change in working practices within the organisation. Information strategy is concerned with the planning, introduction and use of IT resources for the benefit of the whole organisation. By using information strategy, it is important to identify the information needs of the organisation.  It must be led by the needs of the organisation and not by the availability of the technology.

Asia airway using information system

For better services information system help Air asia :

Air asia developed soft ware to automate ticket handling.

For internate flight booking to encourages cutomers.

Used information system to log airlplane parts and time cyrcle for replacement.

To avoid travel agents and their fees.

For reservation keep agents through information system.

Used technique for routing airplanes.

Between cities take most profitible route.

For flight manuals keeping laptop allows paperless cockpits.

Calculating weight of plane to save pre flight time.

Not using hub and spokes method point to point.

The company entered formerly hunting market with great success.

Cost reduction

Service improvement

IT automation

Key steps of Air Asia information system:

Air asia using point to point net work to keep operation system simple

and cost low.

Using streamline operation system to make process simple as posssible.

Air asia providing guests with the choice of customizing services without compromising on quality and services.

For safty complying with the world airline operations and parterning. with the world maintenance providers.

Air Asia assuring lower costs and higher productivity.

Strategic level system:

Strategic level system serve the needs of the management level of organisation.

For the strategic level decision making, a much wide range of information is needed. The different information needs lead to different types of information systems developed. Strategic level system help managers to make decision, they use internal and external sources.

Ship file (eg speed capacity)

port distance restriction file

fuel consumption cost file

Ship charter hire history cost file

port expenses file

Analytical model base




4) Electronic Commerce (E-Commerce) information system:

for business operation process e- commerce play pain role to control the business. Electronic commerce is mainly related to the new technology and the increase of sales and transaction over the internet. The increase in the competition and the continuous globalization of the business both national and international market has created the need of e- commerce. The increase in customer demand for new products as well as the flexibility for shopping online the electronic commerce has made a tremendous impact in the actual form of retailing itself.

5) Accounting information system Technology:

5.1) Input

In modern era The input devices commonly related with accounting information system which include standard personal computers or workstations running applications; scanning devices for standardized data entry; electronic communication devices for electronic data and e-commerce. And many financial systems come “Web-enabled” to allow devices to connect to the World Wide Web.

5.2) Process

The basic processing through computer systems ranging from individual personal computers to large-scale enterprise servers. The underlying processing model is still the “double-entry” accounting system which is introduced in the fifteenth century.

5.3) Output

The output devices include computer displays and electronic communication devices for e-commerce. The output content any type of financial reports from budgets and tax reports to multinational financial statements.

6) Management Information Systems (MIS):

Management information system are human/machine systems that are making decision for users both in and out of organization. This are used to support an organization’s operational activities and overall strategic direction. MISs are made up of several major applications including financial and human resources Systems

6.1) Financial applications: make up the heart of an AIS in practice. Modules commonly implemented include, payables, procurement/purchasing, receivables, billing, inventory, assets, projects, and budgeting.

6.2) Human resource applications: make up another major part of modern information systems. Modules commonly integrated with the AIS include: human resources, benefits administration, pension administration, payroll, and time and labor reporting.

7) type of Information system:

The decision making levels within an organization includes strategic decisions, tactical decisions and operational decisions and each level of decision making needs different types of information.

It help lower management in problem solving and making decision. It is set of information processing functions. It solve the problem quickly as soon as they receive the process.

7.1) Decision support system:

It help higher management to make long term decision. If the decision is not structured there is no proper result come out. DSS can combine the interactive use of models or analytical techniques using information from a number of sources. Managers use all the information together with their professional judgment to make their decisions. DSS does not make the decision for managers but help them to move through the phases of decision making in the medium term tactical decisions and complex integrated problem areas.

7.2) Operational level system:

These systems help manager to keep elementary activities and transaction of the organisation on track. The purpose of this systems is to answer all questions and track the flow of transaction through the organisation. It cover things such as sales, receipts, cash deposits, payroll, credit decisions, flow of materials.

7.3) Knowledge level system:

It support knowledge and data workers in an organisation. The purpose of the system is to help the organisation to discover, organise, and integrate new and existing knowledge in to the business, to help control paper work. These systems especially in the form of collaboration tools, workstations, and office system and it is the fastest growing applications in business.

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7.4) Management level systems:

management level system is designed to provide managers at all levels with appropriate information from internal and external sources in order to enable them to make timely and effective decisions for planning and controlling the activities for managers’ area of which they are responsible. It will concentrate on exception reporting as well as summaries of performance within the manager’s responsible areas.

8) level of information system:

In organisation there is different level of information system. Three major information systems are

Transaction processing system

Management information system

Decision support systems

Information system is organised from different equipment including mainframes, minicomputer and microcomputers to improve effective communications throughout the organisation.

To work properly and effectively the five key elements should be checked are functioned are, timeliness, accuracy, consistency, completeness, and revrelevance.

8.1) Timeliness:

Information system provide information to right users. It providing report of information. The system should be able to quickly collect and summarise data result and be able to correct errors promptly.

8.2) Accuracy:

Information system has proper control to editing balancing and comprehensive internal and eternal audit program to control the system.

8.3) Consistency:

Information system process should be consistently. The data which is collected should be report to information analyst. Data collection and reporting change over time management allow systems changes. The procdure should be well documented and should be include proper effective monitoring system.

9) Information Technology:

It is a study of developing, implementing, designing and management of information that are based on computers. It deals with storing, converting, processing, protecting, and transmitting the information safely. information technology is a vast field that includes networking, management of data, computer hardware engineering, software and data base designing, along with administration and management of whole systems. IT is a result of combining communication with computer technologies. It is a term that describes storing communication, and information.  

The popular skills that are related to Information Technology are:

• Computer Networking

• IT governance


• Information Security

• Business Intelligence

• Unix

• Linux

• Project Management

9.1) Controlling:

controlling is all about PDA. PDA stands for Prevention, Detection, and Action. To access the success or failure of a plan requires the actual performance to be compared with the planned targets which have been set previously.

Examples of the targets that maybe set for a typical manufacturing company are:

total revenue

total costs

manufacturing costs

sales costs

sales by products

sales by sales person

Once the deviations from the targets and the reasons of the deviations have been identified, action should be taken to control the situation.

9.2) Communication :

according to checkland and holwell(1998).”It is the people in the organizations that translate the meanings, and disseminate, comprehend, receive and utilize the information. Communication bridges the parties to undertake the activities for fulfilling the Contract terms and conditions.”

The information produced by the organization maybe used by government, investors, distributors, customers, suppliers and others.However, more and more organizations see information as a valuable strategic resource which can help to gain competitive advantage. For example, credit card companies analysis the expenditure to identify the target customers. Hotel chains record customer preferences to increase customer loyalty.

10) Conclusion:

From above statement we come the conclusion For creative business information system is a prime concern . the use of information system consist among organisations these system find that how the firm can capitalise on the long run. A consistent result throughtout this analysis is that organisation with modern practices. These system used hardware, software and related products that enable the delivery of information system. Information system production economics and significantly restructure the industry value chain. Information system has a growing use in organizations. Information system plays a very important role in a modern organization. Effectively developing and using of information system is the essential way for the development of a modern organization.

11) Refrences



3)Answer.com accounting information system




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