Accounting Information Systems

Full Article
http://www.accountinginformationsystems.info/articles/4133/Accounting-Information-Systems-Development

Posted by: Karanveer Johal


Interesting Facts: 

·       Data Analysis of the accounting information of the company is explored and interpreted.

·   The primary decisions that managers are responsible for are identified on an individual basis.

·    In Design - detailed design of all inputs, processing and storing information, and outputs of the proposed accounting system. Inputs may be defined using screen layout tools and application generators for the information system.

·    Entity relationship diagram (ERD) modeling is used to document largescale database relationships.

·    Accounting systems make use of a variety of scheduled and on-demand reports. The reports can be tabular, showing data in a table or tables; graphic, using images to convey information in a picture format; or matrices, to show complex relationships in multiple dimensions

·    The implementation phase consists of primarily of construction and delivery.

·    Testing is performed at four levels: Stub testing, Program testing, System testing and Acceptance testing

Summary:

Accounting information systems are software systems that are used to collect and maintain financial records of a company’s business transactions. There are a few basic steps that companies follow in order to develop their AIS. The first step is to strategically plan the project. For example, what would be the cost of adding information technology systems? How far can they stretch their budgets to compete in a global market and be equipped with newer technology systems? And how much money they can put in to have security to detect and stop frauds. After planning out carefully what is needed for AIS, analyses of a possible software system are made.  In this step, the data of the accounting information of the company is disseminated and interpreted for the decision makers that can offer advice on the financial situation of the company or what other measures can be taken to help the company compete in the market. The final step is that of implementing the system. Implementation is testing of the information systems to see the quality and validity of its performance in which the end result would be a person getting the full picture of the company’s financial data.