This particular article is concerned with the effect Information Systems has had in the domain of financial accounting. To develop this field, it has imported ideas from Information Technology. The idea of this article is to increase awareness among all business types about the various advantages computer softwares can bring. It throws light on getting away with the traditional method of manual handwritten book keeping and shifting to a more advanced computerised system. The various dimensions discussed below should help in promoting the success of computer softwares.
There is no general agreement or a body of well defined knowledge for Information Systems. "It is obvious that all information systems are systems but not all systems are Information systems". A sewing machine, for example, is a system but not an Information system. The main objective of an Information system is to monitor the operations of a target system without which the target system cannot exist.
A manufacturing scheduling system, for example, would monitor/document all activities of its target system i.e. all manufacturing activities. An accounting Information System is the target system for Information system to all businesses keeping accounting software. This includes the purchase, sales, cash books and nominal ledgers of the business.
Traditionally, all accounting information was recorded in a written form especially in small businesses. In fact, the latest research done by MYOB shows that almost 43% of the small businesses still do not use any kind of accounting software i.e. they still rely on handwritten records. All manual handwritten accounting journals, day books, ledgers can be replaced with computer accounting systems. This is beneficial in terms of both cost and the information they provide, further it can also prove to be a marginal proposition. Accounting Software is computer software that records and processes all financial transactions...