Know the Meaning and Function of Accounting Information Systems in the Company
An accounting information system is needed by a company engaged in any field because it contains a process to report the company’s financial condition accurately and correctly for all parties in need. The process is related to information technology to advance the business or business. Accounting information systems will make it easier for companies to do most activities. By providing precise and accurate information, production costs can be reduced and become more effective and efficient. Actually what is meant by the accounting information system? Check out the understanding and function below!
Understanding of Accounting Information Systems
The accounting information system according to Mulyadi is an organization of forms, records, and reports that are coordinated in such a way as to provide financial information needed by management to facilitate company management (2001). Meanwhile, according to Nugroho Widjajanto (2001), an accounting information system is an arrangement of forms, records, equipment including computers and equipment as well as communication tools, implementation personnel and closely coordinated reports that are designed to transform financial data into information needed by management.
From this it can be concluded that the accounting information system (AIS) is a system consisting of various forms, records and reports that have been compiled and produce a financial information needed by the company. Thus the company’s management can see finances clearly through the system. In addition, management can also control the performance of the system used.
Function of Accounting Information Systems
The financial system that provides information has several functions in business continuity. Here are some functions:
a. Gather all data on the company’s business activities and store these data effectively and efficiently. In addition, SIA can also record all the resources that affect the business and all relevant parties. With this function, there will be nothing in the company that is not listed.
b. Retrieve data needed from various document sources related to business activities. Data that has been stored will be easier to retrieve because every detail of the data has been recorded with an accounting information system.
c. Make and record transaction data correctly in the journals needed in the accounting process in accordance with the order and date of the transaction. This recording aims to facilitate the parties who need to check all transactions. So that if an error occurs, it can be corrected easily and the cause can be identified quickly.
d. The main function of an AIS is to transform a data set into financial information that is needed by the company. This information is in the form of financial reports both manually and online that are required by all parties.
e. SIA also functions as a financial control system so that fraud does not occur. With this system, company finances can be tracked with certainty because of a detailed system of accountability. This function can safeguard company assets and reduce the risk of embezzlement of assets by all related parties.
If the company implements an accounting information system properly, it is expected that all reports can be presented on time. So all internal and external parties can make good decisions regarding the development of the company. The use of effective SIA will help the development of the company in the long term.
To support a business having a good accounting information system, of course, it requires a good recording and reporting system as well.
With the existence of an accounting information system, financial statements at the end of each accounting period will be easier to do. Besides being easy, the accuracy in making reports is also more effective. Accounting information systems make maximum company performance and company performance processes more effective and efficient. The ease of accounting information systems can now be obtained easily with the Journal.