Accounting Information System and Manager's Decision Making

Information system is a combination of hardware, software, infrastructure as well trained personnel who organized and facilitate planning, control, coordination and decision making within an organization. Information systems are also able to implement a vital integrated set of components for collecting, storing, and processing data. With this, it provided organizations with the necessary information, knowledge, and digital products needed. Information system bring the meaning of business applications that manage their operations, compete in the market place, manage accounts and human resources. This system have a vast variety of components that are crucial for a enterprise, business to function at his highest level, IT software is responsible that all system are reliable and up to date.

Furthermore, Management Information Systems (MIS) not only is based on software systems, but also includes set of business processes and useful resources that work to put the information together from tactical systems. The entire system is designed to the company to get tactical goals and meet strategies. Basically, the role of any MIS organization could be compared with the heart of a body. This means that information is the blood and MIS is the heart. For a good function of the body should be flow pure blood, because it will help to regulate correctly the brain. MIS has the same role in any organization, all information is collected from distinct sources to all needed destinations. Additionally, MIS plays a particular role of information generation, problem identification and communication because all of this help to improve and take right the decision making.

Our company needs to be installing a latest and advanced ERP system which makes us fully utilizing the business resources in the most efficient manner. Currently, the existing information system does not provide the full, accurate and reliable information from one department to another, neither it’s a cross-platform for information sharing(Columbus, 2014). A less-efficient information system is contributing into increasing cost of production for the business and overall reducing the business efficiency. The inventory turnover is increasing over the time period and so the productivity of staff unable to work at their optimum level. The current information system does not cover the whole business process and rather employees are engaged in manual data recording and preparing the documents to back the data.

Today Enterprise Resource Planning (ERP) is extensively adopted by many organizations regardless of kind and size, mainly because it provides enterprise-wide view of information across all their business operations and help organizations achieve consistency across all their functional departments. The potential benefits of ERP system implementation include improved coordination across functional areas, increased efficiency, reduced operational costs, rapid access to information for decision making, managerial control and support for strategic planning.

As long as this world have businesses and buying and selling within company to company accounting and Accounting Information Systems (AIS) will play a big role in financial management and decision making. The degree of value and how usable an AIS is depending on if the system is custom, outsourced or boxed. In this paper I will talk about just that. You will find out if the company should keep, change, modify or outsource and what will be the advantages and disadvantages of doing so. Analyze the need for changing to a new system and the potential benefits and risks associated with this. Identify three (3) advantages

An information system is a base in today’s business world. Everything is electronic. In various businesses, the survival and ability to succeed strategic business goals is challenging without extensive use of information system. Businesses improve the efficiency of their operations in order to accomplish higher profitablity. Besides that, information systems are important tools available to managers for achieving higher levels of efficiency and productiviy in business operations. For an example, Zara uses the PDA technology to gather customer feedback and input.

Enterprise Resource Planning (ERP) system is a software package or one integrated system that is designed to institutionalize the collection and sharing of organizational data resources (Klaus et al., 2000; Mabert et al., 2003; Wang et al., 2008). Since this kind of systems allows inputting and outputting information and the information could be shared across the whole organization in time, companies all over the world are now utilizing the ERP systems to improve operational efficiency (Davenport, 1998; Klaus et al., 2000).

Accounting information system is a transaction based information system as it deals with the economic events taking place in the enterprise. Most of these economic events take place in the course of day-to-day operations of the business enterprise. In the past, ac¬counting information systems were designed primarily for report-ing to statutory bodies such as tax authorities, regulatory authori¬ties and investors. Very little information was generated to meet the information needs of managerial decision making. The focus of accounting information has changed. It focuses more on generation of information for use in managerial decision making process. An accounting information system that combines traditional accounting practices such as the Generally Accepted Accounting Principles (GAAP) with modern information technology resources.

Quality of accounting information includes reliability, relativity, timeliness and some other features, and it directly connect with the decision-making and operating result. Impact from accounting informatization, accounting information system (AIS) belongs to the management control layer and presents the accounting principle. At the same time, it will make for the improving of accounting information quality.

An information system is used within an organization for the purpose of providing the management and other employees with updated information regarding the organization's performance. The information provided includes current sales, and inventory. These information systems are designed, developed, and maintained so they can capture, compile, quantify, analyze, and share information with the various departments within the organization. These systems also have capabilities of sharing information within an organization's multiple sites in real time. According to ADDIN EN.CITE Hoganson2007322Hoganson (2007)3223226Hoganson, K.E.Concepts In Computing2007Burlington, MA 01803Jones & Bartlett Learning9780763742959http://books.google.co.ke/books?id=3_Y9Hn3qxBcC HYPERLINK l "_ENREF_2" o "Hoganson, 2007 #322" Hoganson (2007), management information systems are the systems that serve management purposes using technological advancements. The executive information system and the enterprise resource planning system have more improved functionality, integration, and flexibility.

Accounting Information System, also known as AIS, is a system that collects, stores and processes accounting and financial data for decision makers, is a common definition of AIS. An AIS is commonly a computer based method for tracking accounting information in conjunction with various information technology resources (Vrcek, 2013). The collected and processed data then is used to create statistical reports which can be used internally by the management department of a company or even by external parties like investors, creditors and tax authorities for decision making.

Management Information Systems (MIS) is the term given to the discipline focused on the integration of computer systems with the aims and objectives on an organization. Modern businesses have been leveraging on MIS to manage, order, organize and manipulate the gigabytes and masses of information generated for various purposes. MIS helps businesses optimize business processes, address information needs of employees and various stakeholders and take informed strategic decisions. The development and management of information technology tools assists executives and the general workforce in performing any tasks related to the

Management Information Systems (MIS) are a combination of computing and communications hardware, operating system software, applications software, and specialized staff used to achieve business goals, objectives, and meet the needs of the organization (Erbschloe, 2008). MIS can be used in numerous ways throughout business operations, they support several departments within a company including but not limited to accounting, customer relations, manufacturing, internet support, etc. More specifically, an information system (IS) is a term that’s more restricted because it refers to software and staff that specialize in processing and interpreting information through a computerized database or computer system. Costco and Wal-Mart have Information Systems in place to assist with providing better service to their members and customers. These systems are also used to help manage internal operations as well as make vital decisions.

Zulkarnain Muhamad Sori Department of Accounting and Finance, Faculty of Economics and Management Universiti Putra Malaysia Abstract This study seeks to examine the use of Accounting Information Systems (AIS) by ZBMS Sdn. Bhd., and it’s contribution to the knowledge management and strategic role of the organisation. ZBMS is a company that registered in Kuala Lumpur and operate in construction industry. The company used automated AIS known as ‘Contract Plus – Financial & Project Accounting’ package commercially

Managerial decision making normally relies upon an effective information system. At present many firms are using accounting software to prepare accounting reports very quick, perfectly and in right time. Accounting Information Systems are most common information systems utilized in business, while it was previously paper-based process;