Business environments are undergoing massive transformations. This is because of the dynamism that is exhibited by the major business transactions in various organizations. This also attributed to the high rate of globalization that is facilitating intensive re-orientation of various business transactions. Business and customer demands are also changing at a very high rate (Marshall & John, 2009). This has dictated the acquisition of systems that assist in managing and facilitating various business transactions in an organization. Organizations have various departments that work together to ensure that all processes are flowing efficiently. Management of all the departments requires the application of sophisticated operations in the administration of the business procedures.
Accounting is one of the most important aspects of business organizations. This is because it assists in collecting, processing and storage of the accounting and financial information in an organization. This is one of the most sensitive and crucial department in an organization (Stenbert, Joseph & Trevor, 2013). On of the aspects that requires maximum attention in the management of accounting processes in the integrity of the processes and operations. This is through promoting high standards of accuracy and reliability in the processes. Transparency is also one of the critical constructs of the aspects that govern the accounting processes.
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"Changes in Accounting Information Systems".
The use of accounting information systems is very important in accounting today (Stenbert, Joseph & Trevor, 2013). This has led to a lot of evolution in the accounting operations of organizations today. This involves the use of a computerized software application that manages all the accounting processes in an organization. This takes care of all accounting operations in an organization. The system gives a provision for entering of the accounting information and data. Then the system keeps track and organizes the accounting information appropriately. This information systems can also be used to provide all the accounting information about an organization. This includes the manipulation and provision of all financial statements (Marshall & John, 2009).
The use of accounting information system is one of the most practical and realistic way of upholding the integrity of accounting processes in an organization. This is because these systems assist in enhancing the accuracy of all accounting information and data. The application of the information systems in the accounting process also assist in increasing the speed of all the financial transactions. This is because most of the operations involved are automated. Errors are minimized because the computer systems that are involved can handle large amounts of information without fatigue (Stenbert, Joseph & Trevor, 2013).
Information systems can also be applied in various ways to safeguard accounting information. This can be through electronic recording and transfer systems of the information (Stenbert, Joseph & Trevor, 2013). This is very crucial because it assist in avoiding the manual information transfer systems that promote the transfer of this information. Networking systems can also facilitate the transfer of this information form one place to another. This can also include the use of the internet (Marshall & John, 2009). Electronic transfer of accounting information is very fast and prevents it from interference. These records and reports can be sent from one level of management to another in an easy and effective manner to facilitate the decision making processes.
Application of information systems is very crucial safeguarding accounting information. This is because of the level of security in the system. Unlike the manual filing and reporting systems, information systems can limit access to the information systems and thus promoting confidentiality (Stenbert, Joseph & Trevor, 2013). Manual accounting information sis also subject to destruction. The application of information systems is very essential for accounting information storage. This is because it allows easy duplication of the information and data. This can assist in providing multiple storage points because of its flexibility. Therefore, in case of physical destruction of the systems, this can enhance resilience through proving the information from backup systems.
Automation of the information systems assist in propagating high standards in accounting. This is because retrieval of previous transactions is very easy. This also assist in the auditing process. This is also very important in facilitating collaboration within an organization and outside. This is because this enables online transaction with other business partners or stakeholders. This is very important because it organizes all the required information and organizing it in a logical manner so as to complete all transactions within a short time (Marshall & John, 2009). This can be through online coordination of all departments in an organization through a centralized filing system.
Automating of the accounting process facilitates easy making and receiving of payments. This can be through acting on the payrolls or paying for any goods or transactions made in an organization. This systems also assist in sharing of information with pother information systems within an organization. These records can be used by the management information systems (Stenbert, Joseph & Trevor, 2013). They can also be applied by the decision support information systems. This assists the top level management in making strategic decisions that are very important in propelling an organization. This is very important in strategic planning because it can assist an organization in achieving its long-term goals and objectives (Marshall & John, 2009).
In conclusion, application of information systems is very crucial in accounting. This is because it facilitates in improving the quality of services through increasing accountability and accuracy of the procedures. This is also one of the activities that enhances compliances to the basic accounting protocols and standards that regulate the accounting processes. These systems are also very flexible and thus can assist in promoting consolidation and connectivity among various professionals and department in an organization. Therefore, information systems have led to the evolution of most of the accounting processes.
- Marshall, R. & John, P. (2009). Accounting Information Systems. Upper Saddle River. Prentice Hall.
- Stenbert, P., Joseph, M. & Trevor, T. (2013). Accounting Information Systems. Canberra. Pearson Australia.
