What You Need to Know About Accounting Information Systems

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Accounting information systems give companies another way to track accounting information with IT resources, increasing visibility into those processes. Ultimately, the solution combines the study and practices of accounting with the design, implementation and monitoring of information systems. There are six main components to accounting information systems: people, procedures, data, software, information technology infrastructure and internal controls and security measures.

What do Companies Need to Know About Accounting Information Systems?

Utilizing accounting information systems can greatly reduce costs and increase productivity in any business. The solution can easily streamline and automate the reporting processes used in most everyday operations. At every stage, in every department, information is entered into the system. This information is centrally stored and can be accessed and matched up accordingly depending on the task. If a shipping and receiving clerk needs to establish an invoice for a particular vendor he or she can easily access the accounting information systems database. From there the clerk can view where the information has been entered, shipped and ultimately billed.

Implementing Accounting Information Systems

Even the best in the business recommend hiring outside help when implementing accounting information systems. This will save time and money, not to mention the frustration a delayed solution could put on a company and its employees. One of the biggest factors when implementing accounting information systems is the need to have strong internal controls regarding transactions. The Sarbanes Oxley Act of 2002 mandates company control over internal reporting. Particularly, computer-based accounting information systems were targeted by the litigation; but because of this, systems providers often highly regard their services are up to snuff when it comes to risk management, compliance features, and security.

Accounting Information Systems Reduce Manual Data Handling

Companies can take note that as the trends of accounting information systems continue to advance, so will the improved efficiency and reduction of manual data handling. Information can be accessed more quickly as well as the sheer volume of data increases in the storage center. All of this eventually leads to a decline in operational costs throughout financing, human resources, and payroll departments.

Trends in Accounting Information Systems

Accounting information systems continue to grow via web and Internet applications. These include web based accounting, customer relationship management, and payroll and human resources systems. These systems are also growing in the areas of e-commerce and e-procurement systems in addition to cloud services, hosted web-based systems and services as a system. The future of accounting information systems includes accounting software within the e-commerce, CRM and distribution for integration, too.

The opportunity to add multiple ways to access those web-based systems through smartphones and other technologies is also developing. Real-time processing for the ability to give users the desired information immediately is just another advancement of accounting information systems. The increased automation and seamless access can be used with open web-based systems and even global positioning. In the accounting world, compliance is everything. Besides the Sarbanes Act, companies will find the convenience of IFRS, VAT e-filing and online tax reporting and filing beneficial and easy to use.

Accounting Information Systems in Your Company

As previously mentioned, the industry is continuing to expand with the added benefits of cloud accounting, so you get even more visibility over your accounting system. An added benefit to accounting information systems is that they are individually configured and customized, so you get exactly the data you need in order to inform business decisions. Thus, accounting information systems offer a valuable tool for business that want an even more complete view of their financial management processes.

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