Day: October 9, 2019

The Importance of Accounting Information Systems for Companies

The system is a set of elements that mutually together to achieve certain goals. The system must have an organization, relevance, integration, and main purpose. Every part of the system is called a subsystem. An example of a system that is in the company is an Information System. An information system is a system created by human accounting information systems which generally consist of a set of integrated components, which can be computer-based or manual, which are determined to collect, store and manage data and provide output in the form of information to users. The information system facilitates the operational functions of the company and supports management decision making by providing information that managers can use to plan and control company activities. To facilitate the reporting of information and accounting systems in your company, you must use professional and experienced services such as Boyd Associates. This company is not only engaged in one area but various fields, such as tax and Chartered Accountants Bella Vista. for more details, you can visit the website https://www.boydassociates.com.au.

One of the subsystems of the existing Information System in the company is the Accounting Information System. “The accounting system is the organization of forms, records, and reports that are coordinated in such a way as to provide the financial information needed by management to facilitate the management of the company.” The purpose of the Accounting Information System is to collect, process, and report information relating to the financial aspects of business activities. company. The purpose of this Accounting Information System is also seen in the important functions established by the Accounting Information System in an organization, namely:

  1. Collect and store data about activities and transactions.
  2. Processing data into information that can be used in the decision-making process.
  3. Exactly control the assets of the organization.

The components contained in the Accounting Information System include:

  1. Man is an accounting information system, as an actor who runs the system
  2. Transactions, as objects of the accounting information system that constitute input, are then processed to produce information
  3. The procedure, as steps that must be taken in conducting transactions or company activities
  4. Documents, in the form of forms used as a means of recording at the time of the transaction
  5. Equipment, as a tool or means used in recording the relevant information systems

The benefits of the Accounting Information System for the company can be seen from the following points:

  1. Providing accurate and timely information so that the company can carry out major activities in the value chain effectively and efficiently
  2. Improve quality and reduce the cost of products and services produced
  3. Increase efficiency
  4. Improve the ability in decision making
  5. Increase knowledge sharing
  6. Adding work efficiency to the financial department
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