Accounting Information System Free Essays

Here is a proposal for implementation of the plan for school payment to keep the student in school. The students shall be compensated on a monthly basis. They shall be paid 20% every month on successful attendance to the classes and a fine of 5% for failure to attend classes for any given day (Unless authorized by the school principal, for whom it shall not be for indiscipline case(s)). We will write a custom essay sample on Accounting Information System or any similar topic only for you Order Now The next 40% of the money shall be paid at the end of every academic year. This is to facilitate the students’ upkeep while out of school as they go on with their research work during the summer holidays. The remaining amount shall be cumulatively paid upon successful completion of the course during the graduation ceremony. This will be a big boost to the students as the total amount will give the student a better start to either start their own jobs or use it to look for employment. The payment shall be authorized by the principal upon confirmation from the class teacher of the attendance of the students. This is better done in public so that all those who do not attend school be ashamed of their acts. The payment shall however be effected by the school Bursar. The monthly payments shall be done by cash while the annual and terminal payments shall be effected by check only. Q3.) I strongly disagree. The cost of employee hiring and training can never be equated to the expected term of service. This is because, the training that the employee undergoes will later be subtracted from the salary and hence there is no sense in it being that it has to be amortized. Some companies use that line of though to harass their employees and to silence them anytime they bring their grievances. Training is good both for the individual as well as the organization but amortization is going way overboard (Romney Steinbart, 2008). How to cite Accounting Information System, Papers Accounting Information System Free Essays Accounting Information System (AIS An  accounting information system  (AIS) is a system of collection, storage and processing of financial and  accounting   data that is used by  decision makers. accounting information system (AIS) consists of: – People – Procedures – Data – Software – Information technology infrastructure What important functions does the AIS perform in an organization? 1. It collects and stores data about activities and transactions. We will write a custom essay sample on Accounting Information System or any similar topic only for you Order Now 2. It processes data into information that is useful for making decisions. 3. It provides adequate controls to safe-guard the organization’s assets. Uses of (AIS) * Producing External Reports * Supporting Routine Activities * Decision Support * Planning and Control * Implementing Internal Control Producing External Reports Businesses use (AIS) to produce special reports that follow a required structure established by organizations such as (FASB). These reports include financial statements, tax returns, etc Supporting Routine Activities Managers need an (AIS) for handling routine operating activities during the firm’s operating cycle. Computer systems excel at handling repetitive transaction by many accounting software support these routine functions. Decision Support Information is needed for nonroutine decision support at all levels of an organization. Some information are critical for planning, deciding, marketing functions. Planning and Control An information system is required for planning and control activities as well. Historical data can be extracted from the database and used to forecast growth and cash flows. Planners can use data mining to reveal long-term trends and relationships. Implementing Internal Control Internal control includes the policies, procedures, and information system used to protect a company’s assets from loss and to maintain accurate financial data. It is possible to build controls into a computerized accounting information system to help reach these goals. Benefits AIS * Speed The main benefit of information systems in accounting is the speed of processing tasks. Data is entered once and can then be used and reused in compiling reports by literally pressing a button. If a transaction needs correction, it is easily done, with reports generated afterward at speeds never possible with manual accounting systems. * Classification When data is entered in an accounting system, manual or computerized, an accountant needs to classify it in a detailed fashion. For example, a transaction could be a sales revenue or an interest revenue. Using information systems, this classification process is easily accomplished with a drop-down menu from which you choose the proper category. You can also quickly generate reports involving classifications. With a manual system, this process takes much more time. * Safety Once data is entered into a computer, it is safe. The chances of losing data are remote, especially when you perform regular system backups. In manual systems, paper pads can be lost or damaged more easily. You can save data on the Internet, where it will not only be accessible anytime you need it but will also still be secure even if your computer is lost or damaged. One disadvantage of Accounting Information System One disadvantage of Accounting Information System is that this system cannot identify any future loss or wrong transaction entry. As we know that computer is a machine, and it cannot do any activity itself. Therefore, computer cannot give any advice or warning. However, accountants in business are capable to estimate any future loss on the basis of their knowledge and experience. Due to this disadvantage it is important and wise for small and mid-size businesses to have some accountants in their business on permanent basis to avoid future losses. How to cite Accounting Information System, Essay examples