Background and definition of the issue/problem
Most of the business organization continues to increase spending on the information system and the budget continues to rise. Ismail and King (2014) stated that Information System is developed with use of information technology to aid the individual in performing the job. Most of the business organization is focused on the information system to support decision system, knowledge management as well as communication management. The key part of the information system used for making decision within the organization is termed as accounting information system (AIS). Dillard and Yuthas (2013) demonstrated that AIS is a tool that is designed to help and control topics related to the organizational economic financial area. This particular system can collect information and raw data and then transform it into the financial data for reporting them to make of decisions. In order to understand the term AIS, this paper elaborated the system separately. The literature review documented the accounting into three components such as information system, language of business and source of the financial information. The system is integrated entity where the framework is being focused on set of objectives.
In order to meet with the changing requirements of the business, accounting information system is being customized. An information system can guarantee the success of the business organization. AIS are used to identify different issues to meet with challenging requirements of the business organization. When issue or problem is identified, then it simplifies the design of accounting system. Simplification of the system helps the end financial users to gain financial information in the working environment. Dillard, Yuthas and Baudot (2016) opined in order to manage an organization and implement internal control system, the role of AIS is crucial. Robey and Boudreau (2016) concluded that though information is generated from the AIS, it is effective in process of decision-making, purchase, installation, usage of system when benefits exceed the cost.
The aim of this study is to determine the benefits of integration of accounting information systems within the business operations. This study is useful to the researchers interested in identification of problems as this study places a platform on, which further studies associated to the subject can be undertaken. The objectives of the research study are:
- To determine the impact of accounting information system’s factors which is designed for operating in business situation
- To identify role of AIS in business organization
- To bring out the ways that challenge business organization at the time of implementing AIS
Haislip, Peters and Richardson (2016) stated that AIS plays a major role to enhance the organizational effectiveness within the global competitive environment. Marshall, Curry and Kawalek (2015) argued that financial statements are an important source of outwardly feasible information on the companies. In spite of the technological changes, there are some concerns that accounting practice has not kept pace with rapid economic as well as higher technical changes, which affects the value of accounting information. The importance of the Hopwood (2015) assertion is being reinforced by massive accounting fraud in developed countries such as USA. Some of the researchers reported that value of accounting information is declined while some claimed that those are not lost its value.
Impact of various factors of AIS on business organization
Merchant (2013) believed that accounting information exists as it satisfies the need for information. Accounting data provides quick response to the investors needs. Investors are not able to direct access the financial information of the invested company. They are dependent on the financial reports. These reports are required to discover the investment benefits. Robey and Boudreau (2016) demonstrated that benefits of the AIS is evaluated with its impacts on improving the decision making process, quality of the accounting information, evaluation of performance, internal controls as well as facilitate the transactions of organization. Based on above-mentioned five characteristics, AIS effectiveness is important for the business performance. According to Bryman and Bell (2015), performance management plays a key role to improve entire organizational value. Control efficiency of the financial data has affected the operating performance.
Project aims and objectives
Role of AIS design in the business organization
The main role of AIS is to assign quantitative value related to the past as well as future events based on economics. With use of AIS, the business organization produces the financial statements such as income statement, cash flow as well as balance sheet (Davenport, 2013). The computerized system can process the data and then transform it into financial information. Zadek, Evans and Pruzan (2013) stated that AIS performs various key functions with use of three stages such as collection of data, maintenance of data and data control.
AIS design affects the operational aspects in the business organization
Bhimani and Willcocks (2014) stated that the main use of the AIS in the business organization is for making decisions. In order to make the financial reporting to effective, it is both relevant as well as reliable. The system has the capability to predict the future actions within the organization. It raises the knowledge of users in order to recognize the comparisons and dissimilarities in two information types. Michalski, Carbonell and Mitchell (2013) opined that AIS is one of the system that help the financial manager to collect, store and process of monetary data. It is a computer-based procedure used to track financial data align with the information technology. Most of the business organization is finding new ways to adopt cost effective cloud based AIS to increase their productivity and profitability in recent times. Christopher (2016) demonstrated that there are two-step in AIS implementation. One if detailed requirement analysis of the system and second is system design of AIS to implement the new system. Silverman (2016) investigated that AIS and organizational effectiveness shows a strong relationship. After analyzing various recent studies on value of accounting information for the equity valuation, price of share as well as earnings prediction have existing financial reporting model within developed countries. While implementing control system within a business, role of AIS is critical.
Challenges of AIS implementation in the business organization
Zikmund et al., (2013) opined that there are various challenges of the AIS in the business organization. Real time reporting within the accounting information offers benefits to the organization. The business requires financial as well as non-financial reporting dependent on quarterly and annually periods. Due to rapid changes into the marketplace, there is outdated periodic reporting. Higher competition among the business organization demands for updated information in order to facilitate management. Majchrzak et al., (2014) identified some of the issues in the AIS implementation such as establishment of new AIS results into change in the business operation. Zadek, Evans and Pruzan (2013) argued that there is poor communication among the team members while implementing the system. The other challenge is that design a system to manage the financial data on integrated basis requires configuring the data architecture (Drury, 2013). There is a requirement to implement shared data, as the current data network cannot able to handle this new implementation. A new solution is established for the business organization so that the user cannot access to the information easily.
Literature review
The concept is the theories and practices that are used for managing, informing and system giving rise towards a single product such as information system. The concept of the usage of AIS provides information through process of data analysis (Collier, 2015). The system uses concept of management control in design of AIS. AIS can be advanced for a particular target it is developed after efficient arranging and plan. It requires an examination of business, administration perspectives and arrangements, association culture and the administration style. The AIS, in this way depends heavily on the system theory. The theory offers answers for handle complex circumstances of both input as well as output flow (Simons, 2013). It utilizes theory of correspondence, which develops a framework plan fit for taking care of information data sources, handle, and the yields with the minimum distortion in transmitting the data from a source to goal.
This particular chapter sets out the research approach, which is used to achieve the objectives of research. It also sets out various methods to select the respondents, collect data and information and finally analyze them.
Research Philosophy
In this particular research study, positivism research philosophy is used. It is used as it sticks to view factual knowledge, which is gained from the observation. In this philosophy, the researcher role is limited to collect the data as well as interpretation during objective approach. The findings of the research are visible as well as scientific (Bryman & Bell, 2015). With use of this research philosophy, it is believed that the researcher is independent of the research and the entire research study becomes more objective (Michalski, Carbonell & Mitchell, 2013). The reason behind choosing positivism research philosophy is that it reveals the truth from derived knowledge.
Research Approach
In this particular research study, deductive approach is used as it employs the current research study. The information is collected from journal articles related to the selected research topic. This research approach explores to theory and then tests if the selected theory is valid with the research topic (Becker, Kugeler & Rosemann, 2013). This approach is following the logical path of the research study.
Research Design
In this particular research study, descriptive research design is used as using this design approach, the selected research topic is conducted with in-depth analysis with use of secondary sources of information. This study is designed to represent the research participants in a proper way (Flick, 2015). The researcher can do descriptive research through three ways such as observational, case study and survey. This study is used to demonstrate different aspects of the research situations. It is also used to describe uniqueness and behaviors of the sample population (Michalski, Carbonell & Mitchell, 2013). Descriptive design is suitable for the study as it addresses various objectives as well as research questions, which are proposed in the study.
Data sources
In this particular research study, secondary data sources are used which is collected from the peer-reviewed journal articles, case studies, academic books, magazines and authentic websites. This data source can save time, as data are not collected from the population. The benefit of using this data source is that the background work is required to carry out such as literature review (Kerzner, 2013). The data are used within the published texts, statistics and the data are promoted to the media. Secondary data sources have higher degree of validity as well as reliability that are required to re-examine by the researcher to use those data.
Impact of various factors of AIS on business organization
Data interpretation technique
Qualitative data is used for initiating an enquiry into the motive behind the performance of human. It is used for the studies at the individual level, and it finds out depth in which people can think. This research analysis is used to develop research concepts that help to appreciate the social phenomena (Taylor, Bogdan & DeVault, 2015). This method is used as an assumption and the evidence are gathered based on theoretical ideas as well as structures. Finally, the method is used for collecting data from the observable reality.
The research study examines the effect of the quality of AIS on the organizational performance. From the secondary information, it is analyzed that AIS provides better decision- making to the managers. The accounting data exists as it fulfills the requirement for data. AIS is assessed with its effects on enhancing the basic leadership handle, nature of the accounting data, assessment of execution, inner controls and encourage the exchanges of association. The principle part of AIS is to assign out quantitative value, which are identified with the past and in addition future situations in view of financial matters. With utilization of AIS, the business association creates the monetary articulations, for example, pay explanation, income and additionally accounting report. The automated framework can handle the information and after that change it into monetary data. AIS are considered as a tool that is implemented to assist and manage topics related to the managerial monetary financial area. This particular system can gather information and rare data and then change it into the financial data as well as information for reporting them to take decisions.
According to some of the researchers, lack of training on use of AIS as well as lack of system documentation is the challenges they face while implementing the AIS into the business organization. There are different difficulties of the AIS in the business association. The business requires money related and non-budgetary detailing subject to quarterly and every year time spans. Because of fast changes into the commercial market, there is updated intermittent detailing. Higher rivalry among the business association requests for refreshed data with a specific end goal to encourage administration. There are issues in the AIS usage, for example, foundation of new AIS comes about into change in the business operation. There is poor correspondence among the colleagues while executing the framework. The other test is that outline a framework to deal with the money related information on incorporated premise requires designing the information engineering. There is a prerequisite to execute shared information, as the present information arrange cannot ready to deal with this new usage. Another arrangement is built up for the business association so that the client cannot access to the data effectively.
The role of the AIS is summarized in this particular research paper. It is a system that operates on the functions to gather data, process, categorize and report of financial events. With these functions, it can provide with relevant information, which helps the manager in decision-making. The financial reports are gathered on weekly as well as daily basis. Successful implementation of the AIS into the business organization can improve financial work qualities, improves in flowing of product, improving flexibility, motivation to use of software application, solving employee’s problems and increase organizational profitability. The primary utilization of the AIS in the business association is for deciding purpose. The system is both pertinent and in addition dependable. The framework has the capacity to anticipate the future activities inside the association. It raises the learning of clients keeping in mind the end goal to perceive the correlations and dissimilarities in two data sorts. AIS are one of the frameworks that help the budgetary director to gather, store and procedure of financial information. It is a PC based methodology used to track budgetary information line up with the data innovation. Most of the business organization is finding new ways to approve cost effective cloud based AIS to raise their productivity and profitability in recent times. Therefore, this accounting information system is best used within the accounting and other firms.
Role of AIS design in the business organization
8.0 Conclusion
It is concluded that requirements of AIS discover new benefits for the business organization through which the system has an impact on role of accounting. From the results of the secondary data analysis, it is concluded that AIS usage is accepted within the accounting firms as an information system change, which comes with use of application. AIS bring about a new trend of changes from conventional method of accounting to computerized way. The usage of AIS has improved productivity as well as delivery of the customer work. AIS refer to verification of legality of accounting information, its privacy and audit accuracy. The administration, creation association division of the information will be taken care of through the system straightforwardly into the accounting data framework. Each representative or staff t may progress toward becoming makers and clients of accounting data, which is subject to supervision and investigation. AIS and its possible challenges finish up the contents of the accounting investigation of the PC framework to build the preparing and control elements of the audit. This review has assess the viability of accounting data frameworks in basic leadership from different perspective, such as, better decision making by directors, more compelling inside control frameworks, change of the quality of money related reports, upgrade of execution measures, encouraging monetary exchange procedures and aides in extension of benefit of the association. Further studies are required to conduct to quantify the impact of AIS into the accounting firms to set up full potential.
Following are the recommendations, which are suggested to the researchers to adopt into the business organization, which helps in easy implementation of AIS:
Increase awareness of usage of AIS: Most of the employees have lack of knowledge to use and handle of AIS. Therefore, within the business organization, the management should aware and train the employees on usage of AIS to assist wide adoption. Higher level of formal education should require giving to them along with workshops and users training for making improvement.
Development of AIS: In order to meet with the financial goals and objectives of accounting firms, the business organization should pay attention to development of AIS, based on the findings of the research study, it is recommended that as AIS generates financial reports for economic growth as well as business development, therefore on time development of AIS is required. There should be a central data management system, which can produce and communicate different users at any point within time.
Acquire of computer software: The business organization should acquire computer software as well as program in order to meet with growing growth and development. An experienced IT workers should require to employ that they can manage and handle the AIS. Without expertise staffs, no proper impact can affect the organization. Proper time should need to allocate for information transmission so that they can guide against errors as well as effective communication. Proper mode of communication system is required for forecasting and reducing conflicts among the management and workers.
References
Becker, J., Kugeler, M., & Rosemann, M. (Eds.). (2013). Process management: a guide for the design of business processes. Springer Science & Business Media.
Bhimani, A., & Willcocks, L. (2014). Digitisation,‘Big Data’and the transformation of accounting information. Accounting and Business Research, 44(4), 469-490.
Bryman, A., & Bell, E. (2015). Business research methods. Oxford University Press, USA.
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
Collier, P. M. (2015). Accounting for managers: Interpreting accounting information for decision making. John Wiley & Sons.
Davenport, T. H. (2013). Process innovation: reengineering work through information technology. Harvard Business Press.
Dillard, J., & Yuthas, K. (2013). Critical dialogics, agonistic pluralism, and accounting information systems. International Journal of Accounting Information Systems, 14(2), 113-119.
Dillard, J., Yuthas, K., & Baudot, L. (2016). Dialogic framing of accounting information systems in social and environmental accounting domains: Lessons from, and for, microfinance. International Journal of Accounting Information Systems, 23, 14-27.
Drury, C. M. (2013). Management and cost accounting. Springer.
Flick, U. (2015). Introducing research methodology: A beginner’s guide to doing a research project. Sage.
Haislip, J. Z., Peters, G. F., & Richardson, V. J. (2016). International Journal of Accounting Information Systems. International Journal of Accounting Information Systems, 20, 1-15.
Hopwood, A. G. (2015). Towards an organizational perspective for the study of accounting and information systems. Accounting, Organizations and Society, 3(1), 3-13.
Ismail, N. A., & King, M. (2014). Factors influencing the alignment of accounting information systems in small and medium sized Malaysian manufacturing firms. Journal of Information Systems and Small Business, 1(1-2), 1-20.
Kerzner, H. (2013). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.
Majchrzak, A., Beath, C. M., Lim, R., & Chin, W. (2014). Managing client dialogues during information systems design to facilitate client learning.
Marshall, B., Curry, M., & Kawalek, P. (2015). International Journal of Accounting Information Systems. International Journal of Accounting Information Systems, 19, 17-28.
Merchant, K. A. (2013). The design of the corporate budgeting system: influences on managerial behavior and performance. Accounting Review, 813-829.
Michalski, R. S., Carbonell, J. G., & Mitchell, T. M. (Eds.). (2013). Machine learning: An artificial intelligence approach. Springer Science & Business Media.
Robey, D., & Boudreau, M. C. (2016). Accounting for the contradictory organizational consequences of information technology: Theoretical directions and methodological implications. Information systems research, 10(2), 167-185.
Silverman, D. (Ed.). (2016). Qualitative research. Sage.
Simons, R. (2013). Levers of organization design: How managers use accountability systems for greater performance and commitment. Harvard Business Press.
Taylor, S. J., Bogdan, R., & DeVault, M. (2015). Introduction to qualitative research methods: A guidebook and resource. John Wiley & Sons.
Zadek, S., Evans, R., & Pruzan, P. (2013). Building corporate accountability: Emerging practice in social and ethical accounting and auditing. Routledge.
Zikmund, W. G., Babin, B. J., Carr, J. C., & Griffin, M. (2013). Business research methods. Cengage Learning.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
