In particular, remarkably arranged accountants work with AIS to ensure the biggest measure of precision in an association's cash related trades and recordkeeping and to make fiscal information adequately open to the people who legitimately expect access to it, all while keeping information set up and secure. This article will depict the fundamental sections of an AIS and some of its authentic applications. As demonstrated by A Statement of Basic Accounting Theory and Generally Accepted Accounting Principles, accounting system should offer information to help organization in masterminding and essential administration nearby there are various obligations are to be kept up to make it successful. Three main responsibilities of Accounting Information System
Most of them are of the view that there are a number of benefits in adopting this principle. One major explanation is that conservatism arises because it is an essential component of the efficient measures and technologies that are employed in organizations and companies (Givoly, Hayn & Natarajan, 2007). Using this explanation, conservative accounting is a mode and means for dealing with problems dealing with asymmetric information and limited liability (Sohn, 2011). Even in those cases where contracting as well as managerial accounting will be separated from accounting and reporting, most of these problems will continue to exist. The contracting measures and explanations have shown that conservatism is quite beneficial when viewed from investor perspectives.
There are certain standard industry certifications such as ISO 9000 which show that the companies with those certifications are more reliable. • Supplier relationships Purchasing has the major responsibility for establishing and maintaining good supplier relationships. The relationship is based on the contract between buyers and sellers. Short term contracts involve competitive bidding where suppliers are kept at arms’ length and the relationship is minimal. In such cases businesses may be conducted through computerised interaction.
(David J. Snowden and Mary E. Boone, 2007, A Leader’s Framework for Decision Making for Harvard Business Review) Both managers and employees have access to all the information required, decisions are easily delegated and necessary functions are automated. Incorrect classification can be a risk, where leaders chose not to ask for more information regardless of the complexity of the issue in hand. Micromanagement needs to be avoided, and a communication channel needs to be created keeping in mind “that best practice is, by definition, past practice” (David J. Snowden and Mary E. Boone, 2007, A Leader’s Framework for Decision Making for Harvard Business Review) and is often the apt decision-making methodology for simple context
Analysis • This section is regarded as the most critical step in writing an effective accounting memo by bringing together the required facts of the research, any supporting authoritative literature, and an accountants overall evaluation before forming a conclusion. • Analysis includes information from relevant guidance, along with an accountant’s own words about how the guidance is applicable. • The memo should contain enough authoritative guidance that the user will not need to perform additional research in the Codification. • Make sure to utilize the concept known as the “guidance sandwich.”
(Banerjee, 2015) Their results materialize the efficient management of the company, that is, how management has used the resources, provide more complete answers about what is being managed as effectively the company. For these reasons, management should ensure that the behavior of these indices, because while greater your results, the greater the prosperity for it. e) Evaluation of outstanding debt of Bayou Clinic Outstanding debt of Bayou clinic can be assessed through debt ratios. The debt ratio measures the intensity of all the debt of the company in relation to its funding, measures the percentage of total funds provided by creditors.
Daw Hla and Susan, Peter Teru Says that Accounting Information System is computer-based application system, and its control and enhance the corporation of an organization. It is Managing an organization and implements the internal control system. The role of accounting information system is a crucial process. The qualitative Characteristic of any accounting information system is maintained by the sound internal control system. The primary function of AIS is assigned the qualitative value of economic events.
Validity and Reliability The validity of a research examination is the characteristic that makes it credible and attests to the rigour that was performed. The validity of the study involves about their purposes and logical consistency between its constituents. Validity and reliability are fundamentally two main components in a research which plays a perilous role. When dependability and impartiality is coordinated to a high level then at that point the reliability and validity of the qualitative study are better enhanced and assumed (Saunders, Lewis, & Thornhill, Research Methods for Business Students, 2009).
The main important purpose of the accounting information system is to promote the activity of the enterprise and to form a reliable and real picture of it. In addition, the accounting information system promotes the activity of the enterprise effectively by preparing up-to-date information statements, providing as much information as possible so that the data should be understandable all users not only for the experts(bookkeepers) and tracking liquidity. Nowadays accounting software is a programme which makes accounting work processes easier and faster and which makes it possible to meet the information demand of the management. It also can support the accountants’ work, helping to compile reports by in helping to compile reports by recording and processing the events concerning the
In order to have a tighter control on financial, IBC must ensure that all records are kept under proper control and cannot be misapplied, whether on purpose or by mistake. Ensure that all expenditures incurred are properly authorised and accounted for. Another way that IBC can use to have tighter control on financial, is to use a mechanised accounting system. It is great time saving for business.
For any company to be profitable and remain solvent, it must have a stable financial resources. To ensure financial stability, a business needs to conduct financial analysis to ascertain its financial strengths, weaknesses, opportunities and threats (SWOT). Therefore, the CLC provider, in adopting and implementing the Electronic Medical Record systems (EMR) will conduct a thorough and an extensive financial analysis both internally and externally. The goal for doing this is to improve the efficiency, effectiveness and quality of the care and services we provide to our customers while at the sometime keep the business profitable and solvent. The implementation of EMR undoubtedly comes with cost attached and we want our investment to pay off