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Replacing Accounting Information System with New Ones - Essay Example
Finance & Accounting
Pages 5 (1255 words)
Replacing Accounting Information System with New Ones Introduction Accounting Information System (AIS) can be simply referred to as a system designed for gathering, storing, and processing financial and accounting information used for decision making purposes…
It is evident that an organization would go out of business unless it effectively meets the changing needs and requirements of its customers and investors. Therefore, it is crucial for every firm to make its systems and processes up to date so as to better serve the stakeholder interests. As Beke (2011) points out, an accounting information system plays a pivotal role in processing financial and accounting data into understandable information used by the firm’s stakeholders including investors, creditors, and managers. An old version of AIS may not meet the current information needs of the stakeholders concerned (particularly in case of publicly traded companies) and this situation would cause dissatisfaction among them. Hence, it is better for organizations to modify the existing AIS on time or install a new one in order to keep their stakeholders satisfied. Such a change would probably assist the company to provide its stakeholders with more accurate and extensive information in lower time frame. Since modern business is based on highly complex processes and practices, stakeholder groups would be greatly benefitted from a high tech accounting information system that enables them to easily assess the company’s financial position. ...
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