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    Accountants: What Is An Accounting Information System (AIS) ?

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    Eilyn Serelia Widodo
    An accounting information system (AIS) refers to software-based tools and systems that collect and display accounting information to help accountants and executives make informed financial decisions. AIS helps streamline the flow of financial information related to taxes, reporting, audits, and other aspects of a company's finances. Deploying an AIS requires careful software creation, testing, and onboarding to ensure minimal disruptions and avoid errors, with continued testing to find and fix bugs. AIS can be useful for small businesses to analyze accounting data and make managerial decisions.

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    Accountants: What Is An Accounting Information System (AIS) ?

    Uploaded by

    Eilyn Serelia Widodo
    12 views3 pages
    An accounting information system (AIS) refers to software-based tools and systems that collect and display accounting information to help accountants and executives make informed financial decisions. AIS helps streamline the flow of financial information related to taxes, reporting, audits, and other aspects of a company's finances. Deploying an AIS requires careful software creation, testing, and onboarding to ensure minimal disruptions and avoid errors, with continued testing to find and fix bugs. AIS can be useful for small businesses to analyze accounting data and make managerial decisions.

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    An accounting information system (AIS) refers to software-based tools and systems that collect and display accounting information to help accountants and executives make informed financial decisions. AIS helps streamline the flow of financial information related to taxes, reporting, audits, and other aspects of a company's finances. Deploying an AIS requires careful software creation, testing, and onboarding to ensure minimal disruptions and avoid errors, with continued testing to find and fix bugs. AIS can be useful for small businesses to analyze accounting data and make managerial decisions.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    12 views3 pages

    Accountants: What Is An Accounting Information System (AIS) ?

    Uploaded by

    Eilyn Serelia Widodo
    An accounting information system (AIS) refers to software-based tools and systems that collect and display accounting information to help accountants and executives make informed financial decisions. AIS helps streamline the flow of financial information related to taxes, reporting, audits, and other aspects of a company's finances. Deploying an AIS requires careful software creation, testing, and onboarding to ensure minimal disruptions and avoid errors, with continued testing to find and fix bugs. AIS can be useful for small businesses to analyze accounting data and make managerial decisions.

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    What is an Accounting Information System (AIS)?

    An accounting information system (AIS) refers to tools and systems


    designed for the collection and display of accounting information
    so accountants and executives can make informed decisions. It is
    considered a pivotal component of finance offices throughout the world.
    The systems are largely software-based and can be deployed as a part of a
    company’s IT solutions.

    Accounting information systems help with the flow of information


    regarding all the aspects of a company’s financials, including taxes,
    reporting, or, if need be, an audit. The software-based solutions allow large
    and small businesses greater control of their finances and provide a
    competitive method for in-house accounting for small businesses where
    resources are scarce.

     
    Deploying an Accounting Information System

    Deploying an accounting information system shares many similarities with


    other styles of IT deployment. The software must be created, tested, and
    onboarded in a way to ensure minimal disruption to existing operations, as
    well as simultaneously ensuring that there are no catastrophic errors that
    can disrupt productivity or cause an outage.

    Software deployment of any kind comes with a high likelihood of failure,


    and special care should be taken by large corporations when they deploy
    such a system that involves its critical components. There is a continual
    feedback loop after the software is deployed to ensure that it is continually
    tested so that bugs, errors, and vulnerabilities are quickly found and rooted
    out.

    Below, we see a visual representation of a simplistic deployment and


    feedback loop:

    When to Use

    Information systems of all types are lowering the barriers to entry for many


    businesses with regard to utilizing software as a tool to streamline
    operations and remain competitive. Accounting information systems are no
    different.

    For example, if you are someone who is starting a small business or


    growing an existing one, a software-based solution that displays your
    accounting data to help you make managerial-level decisions is an
    incredibly useful tool to gather, analyze, and display information.

    In the hands of the informed user, the accounting information system can
    help to provide insights into business deficiencies or areas for
    improvement. It can also aid in reconciliation and in keeping track of
    capital. For larger companies, it can help boost investor confidence and
    make it easier to practice regulatory compliance.

    Sarbanes-Oxley and Accounting Information Systems

    The Sarbanes-Oxley Act was a regulation passed after the financial scandals


    at WorldCom and Enron. The scandals involved largely accounting-based
    fraud and loss of confidence, resulting in the creation and passage of the
    law on July 30, 2002.

    The legislation requires that public companies implement strong audit and
    regulatory controls that can be provided partially by deploying effective
    compliance and accounting information systems. It helps create market and
    investor confidence, reassuring the public that the financials are transparent
    and accurate.

    Financial reporting is a critical part of accounting information systems,


    helping to ensure the ethical allocation and discussion of capital in the
    investment community and the public. Financial regulations globally make
    the effective deployment of an accounting information system a near
    necessity for any small, medium, or large-sized business.

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