Today, all processes related to support and decision-making in business are completely inseparable from Information Systems. These systems help to systematize, organize all the necessary information, and therefore have a huge impact on the business as a whole.
We decided to devote this article to one of the fundamental types of information systems for business – accounting information systems.
This accounting information system article will shed the light on such aspects:
- what is accounting information systems
- what are the main tasks of accounting information systems
- examples of accounting information systems
- the importance of accounting information systems security
What is accounting information systems?
An accounting information system (AIS) is the information system that helps business to collect, manage, store, and report their financial data.
The accounting information system is a crucial element of work for the accountants, business analysts, managers, auditors, and other people who are in charge of the financial health of the business.
The use of information systems in accounting has made it possible to bring accounting to a new level. Today, accounting software is used in various areas, including:
- medium and small businesses
- non-profit organizations
Accounting automation allows not only to simplify and speed up the work of an accountant but also to provide the owner or management with up-to-date information for timely and efficient management.
The main functions of Accounting Information Systems
The main tasks of accounting information systems include:
- Automatisation of business accounting tasks, activity analysis and internal/external audit.
- Providing complete, reliable and up-to-date information about the assets of the company, the sources of their financing, the status of settlements with various debtors and creditors, the budget and extra-budgetary funds.
- Providing operational accounting with minimal labour costs.
Examples of Accounting Information System
Today there are hundreds of companies on the market that develop Software Solutions for accounting. Let's take a look at some examples of the Accounting Information System they offer.
#1 example of Accounting Information System — SAP
This company offers a turnkey financial accounting solution that allows you to track your company's financial health and manage your company's complex global accounting and reporting requirements.
#2 example of Accounting Information System — Account Mate
Account Mate is a modifiable business accounting software. There are single-user versions or corporate versions for big enterprises so many businesses find this information system very attractive.
#3 example of Accounting Information System — CYMA
If you are a manager of a mid-sized business then CYMA can be the right choice for you. It provides the accounting software solution with advanced customization options, numerous useful accounting software modules, robust reporting, and industry-leading security.
#4 example of Accounting Information System — CenterPoint Accounting
Red Wing Software presents the CenterPoint Accounting information system that is great for small to mid-sized businesses. Usually, this information system is chosen by municipalities, agribusinesses, and nonprofits organisations.
Many companies prefer to take advantage of ready-made accounting information systems solutions out of the box.
Also, there is an option to order custom software development, which, even at the stage of Creating A Proof Of Concept, will be able to take into account all the nuances necessary for your business and make the accounting information system as efficient as possible.
Accounting information systems security
Without modern hardware and software, your company will not be able to obtain reliable and timely accounting information. In turn, computer technologies in accounting give rise to new information threats.
Let’s figure out why threats to accounting information systems are increasing.
- As the accounting information system belongs to the class of complex and dynamic formations with a multi-tier client-server architecture with support for communication with remote components, it means the danger can be lurking both inside the system and outside it.
- The software may contain intentional or unintentional errors that create security problems.
- Automated accounting requires an assessment of the reliability of the system, i.e. its properties for the performance of specified functions while ensuring the safety of information and its reliability.
The threat to the information security of accounting is the potential impact on the components of the accounting information system that can harm the owners of information resources or users of the system.
In order to ensure that the protection of information in automated accounting systems is effective, attention should be paid to:
- cryptographic protection of information
- multi-step user authentication
- control of the integrity of the software and information part of the automated accounting information system
- protection of equipment and technical means of the system from leakage of confidential information, etc.
Remember that no matter how effective the controls are, they cannot provide a 100% guarantee, in particular, due to unintentional errors.
Final words about the Information Systems in Accounting
The main thing to remember about the implementation of accounting information systems in your business is that such software can significantly facilitate the management and control of all financial processes in your company.
To get the most out of accounting information systems, you should pay special attention to both the quality of the software solution itself and ensuring all the necessary measures to protect confidential information.