November 30, 2017
ACCOUNTING INFORMATION SYSTEMS
Many organizations are using information technology to develop inter-functional information that crosses traditional organizational boundaries to redesign and improve core business processes. The development of portable, desktop, mini-, and mainframe computers has greatly influenced record keeping and the development of accounting systems (Geerts, 2011). The Internet, intranets, extranets, and other networks are changing the way accounting information is being used to monitor the functions of companies. The online and interactive nature of these networks requires new forms of documents, procedures, and controls. Management information system (MIS) is typically based on computing that is used within an organization. WordNet is described as “a system consisting of the network of communication channels in an organization.” An information system which comprises all the components that collect, manipulate, and disseminate data or information. Typically, these include hardware, software, people, communication systems such as telephone lines, and the data itself. The activities involved include data entry, data processing into information, storage of both, and the production of results, such as management reports.
The study of information systems often involves software development and management systems but also includes the integration of computer systems into an organization’s objectives. This area of study, despite being within the scope of information technology, should not be confused with computer engineering or computer science, which are more theoretical and mathematical in nature (Gelinas, Dull, & Wheeler, 2012). The information that technology companies use allows for the creation of new rules of operations, making companies more flexible. Thus, in the past, while a company had to choose between low cost and strategies of differentiation or focus, current companies can pursue all three goals, due to the progress of information and production technologies. For accounting information to be used, the information must be desirable and applicable to the administration of an entity. For managers seeking to attain business excellence, information, even if useful, is only desirable if it is managed at an appropriately low cost to the entity. The information cannot cost more than the gains it offers in the administration of the entity.
Accounting addresses business processes, which are closely linked to the creation and production of goods and services that will be sold to customers. In order for this relationship to be well-structured, accountants must remain up-to-date and meet goals on time. In addition, the accounting process must be compensatory to managers. For Oliveira (2000), accounting is seen as an information system, characterized by the practice of recording all transactions occurring within organizations in robust databases. Accounting data are useful to managers and the controller because they inform effective decision-making processes. In recent years, there has been a growing need for new techniques that enhance decision-making processes and streamline the distribution of
information to its users. Accounting, in this scenario, has also been impacted by information technology, as the increasing use of information technology not only affects the way accountants work but also offers them opportunities to expand and improve their services. In order to follow technological developments and verify their services, accountants use management information systems (MIS) as instruments for integrating and processing information. The advent of information technology in the accounting and administrative fields led accountants and professionals, in general, to participate in a process of updating their knowledge, as they constantly seek technological innovations in order to produce higher quality services for their communities. Therefore, when dealing with technology integration within organizations, as with the successful implementation of management systems, both the top manager and employees (Hurt & Zhen, 2010). In fact, the organizations, accountants, managers, and users of the information provided by the MIS go beyond accounting techniques to develop effective internal management controls and structured information systems.
Accounting, in this scenario, has also been influenced, as the increasing use of information technology not only affects the way accountants work, but also offers them opportunities to expand and improve their services. In order to follow the technological development and qualify its services, Accounting uses Management Information Systems - GIS, which are used as instruments for integration, the Processing and information management. The advent of information technology in the accounting and administrative area proposes that the accountant, as well as any and all professionals, participate in a
process of updating their knowledge, constantly seeking to understand the technological innovations, in order to produce with quality, the services provided to the community. Therefore, when dealing with integration within organizations, as the successful implementation of the Management Systems, both the Top management and employee (Hurt & Zhen, 2010). In fact, the organizations, the Accountant, the Management and the users of the information provided by the GIS go beyond Accounting Techniques. For the development of efficient internal management controls, structured information system.
Geerts, G. L. (2011). A design science research methodology and its application to accounting information systems research. International Journal of Accounting Information Systems, 12(2), 142–151.
Gelinas, U. J., Dull, R. B., & Wheeler, P. (2011). Accounting information systems. Cengage Learning.
Hurt, R. L., & Zhen, F. (2008). Accounting information systems: Basic concepts and current issues. McGraw-Hill Irwin.
Romney, M. B., & Steinbart.