Are you an MBA student and burdened with your accounting information case study? Well! You are in the right place now. An accounting information system (AIS) is a system that gathers and processes financial and accounting data used by decision-makers. As a subject, it is essential and integral to any form of business. It has great importance in today’s corporate and entrepreneurial world. It involves all the accounting systems and functions like auditing, financial accounting and reporting, managerial accounting, and taxation, etc.
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AIS is a tool for collecting and storing an organization’s accounting and transaction details, then converting them as useful information that the management can use. It enables recording customer invoices, sales transactions, inventory, warehouse, and accounting data. It is integrated with the IT system and valuable in saving accounting costs and efficiency.
AIS case study assignment is given to students at the end of their academic year to analyze their knowledge and understanding regarding the topic. Completing a case study on accounting information technology can be challenging for you if you are pursuing any Master’s and advance degree course. AIS case study requires a lot of effort, quality research, and ample time. That’s why students seek MBA AIS case study help.
The key function of Accounting Information systems
- Collection of Data: Earlier, it was complicated for a manager to record every transaction in the book. But, after the establishment of the Accounting Information System, accountants are not required to keep tones of files to keep their data. They only need a system that stores the accounting data of an organization.
- Supply information: the second function of AIS is to supply the information that is required to make decisions. A financial statement management report is processed through an accounting information system, which enables the managers in the future course of action.
- Reliability and control: It ensures that the data provided by the accounting information system is reliable. And also assure that the business activities that are performed are as per the management objectives.
Essential components of Accounting Information Systems
- Users: People who use accounting information systems are accountants, consultants, auditors, and business analysts. AIS enables the different departments within a company to work together.
- Instruction and procedures: It involves the collecting, gathering, retrieving, and processing of data. It can be both manual and automated, and the sources are internal as well as external.
- Data: It describes the financial information relating to a business organization. Information related to business finance must go in an accounting information system. Data can be in the form of the customer billing statement, sales analysis report, sales order, purchase requisition, vendor invoices, and inventory data, etc. This data is used to prepare financial statements.
- Information technology infrastructure: It is hardware that is used in the process of AIS. The most important thing is the compatibility of the hardware with the software. Effective AIS includes a plan for maintaining, repairing, servicing, and upgrading the hardware.
- Software: It is the components of AIS, a computer program used to store, retrieve, process and analyze computer financial data.
- Internal control: It involves the security measure taken by the organization to preserve the data. It includes a password or even biometric identification.
Different types of information accounting systems
- Manual systems: This information system is mainly used by small business firms and home-based companies. This kind of AIS requires source documents, a general ledger, and a general journal.
- Legacy systems: It is an old-model accounting information system, but it has some advantages. It has been customized to the specific needs of individual firms.
- Legacy system replacement: Legacy systems can be replaced with an updated system. It is an expensive solution to the problem, but one can replace one’s system with another. You can use the process known as screen scraping, which is a technique that takes the data displayed on the computer screen and translates it so other applications can use it.
The process and procedure to store and record financial data
The method and procedure to keep and recording financial data include the following:
- Identity transaction
- Record transaction
- Handling procedure
- Preparation of report and statement
- Reconciliation and reviewing procedure
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