Question

2. Describe 6 ways inter-relationships between corporate strategies and the company’s accounting information systems. Give example(s).

Answer 1

Inter-relationships between corporate strategies and the company’s accounting information systems-

Corporate Stragies	Accounting Information Systems
To plan growth of the company.	AIS helps the plan for growth of the company through the accounting records and understanding where the company stands. For Example: Net Profit is calculated through AIS records which is used to strategize the growth forward.
To come out with strategies to avoid Risk	AIS helps in calculation of Risk and Return through the accounting and information records and this will again help in understanding where we stand. For Example: My competitor’s numbers are better than mine. We are in risk and we need to act immediate.
To come out with strategies to invest in a new software or system for the betterment of the company	AIS helps to analyse the working capital which is there which allows to take decisions. For Example: Working capital which is known to us by an AIS system can help us in planning any purchases or investments
To plan for a Loan or Debt	AIS helps in understanding the Debt position which helps in taking new loans or debt which in turns drive capital to the company
To plan for an IPO	AIS helps in making people or the company understand the position of the company which encourages others to invest in the company for a better growth
To plan for a business expansion	AIS helps in understanding the aspects of the business. It is a true statement of the business which helps in turn in business expansion