Question

The approach to long- range AIS planning as described in this week 7 is important for large organizations with extensive investments in computer facilities. Should small organizations with far fewer information systems employees attempt to implement planning programs? Why or why not?

Answer 1

An accounting information system (AIS) is a structure that a business uses to collect, store, manage, process, retrieve and report its financial data so it can be used by accountants, consultants, business analysts, managers, chief financial officers (CFOs), auditors, regulators, and tax agencies.It ensures the highest level of accuracy in a company's financial transactions and record-keeping, as well as make financial data easily available to those who legitimately need access to it—all while keeping data intact and secure.

Accounting information systems have three basic functions:

1. The first function of an AIS is the efficient and effective collection and storage of data concerning an organization’s financial activities, including getting the transaction data from source documents, recording the transactions in journals, and posting data from journals to ledgers.
2. The second function of an AIS is to supply information useful for making decisions, including producing managerial reports and financial statements.
3. The third function of an AIS is to make sure controls are in place to accurately record and process data

  Most of these hardware items a business would need to have anyway, including computers, mobile devices, servers, printers, surge protectors, routers, storage media, and possibly back-up power supply.A good AIS should also include a plan for maintaining, servicing, replacing and upgrading components of the hardware system, as well as a plan for the disposal of broken and outdated hardware so that sensitive data i completely destroyed.

Accounting information system had been widely used by many small organizations to automate and integrate their business operations, efficiency and competitive advantages. This review focuses on the effect of accounting information system (AIS) on financial performance of firms. It is envisaged that the information technology (IT) component of accounting information system is one of the biggest impact of AIS to firms as it enables firms to track, record and produce financial and accounting reports with much ease. Paper ledgers, manual spreadsheets and hand-written financial statements have all been translated into computer systems that can quickly present individual transactions into financial reports.

The implementation of off-the-shelf small business accounting (SBA) software has become widespread among small and medium sized enterprises as it has become affordable and technically powerful. At the same time, selecting and implementing a suitable accounting software from among the numerous available software packages is often difficult for small businesses. Using interpretive approach based upon a qualitative research methodology, this paper explores the challenges faced by small businesses.User confusion, lack of external guidance and support, and lack of accounting skills have been identified as major issues faced by small businesses in implementing SBA software.

Now most of the small scale firms also have started to adopt AIS planning strategy as the government also has started to support the start ups in their resurgence.

Uses of accounting softwares in all firms including small scale:

• Accelerate Working Speed

• Saves Your Time

• Ready business Reports

• Cost Effectiveness

• Taking Care of Tax Easily

All these are required in a business firm whether in small or large scale businesses.