Today more and more companies are moving from the manual accounting systems to computerized accounting information systems. By using different technology, we can increases the speed and accuracy of processing accounting information, reduce the time spent on low- to non-value-added activities across the organization, as well as enhance the organization's ability to make profit-enhancing decisions.
As information technology becomes more ubiquitous in business activities, it has changed the way we process accounting information and prepare financial statements.
Let's use financial planning as an example. In many organizations, the planning cycle has become an exercise in futility. The budget window can span eight-plus months and is plagued by sandbagging and stretch target setting. Forecasts become a manual nightmare that may consume a big percent of the finance organization's capacity each month, yet don't provide valid predictability to future earnings per share or other finance metrics. By setting up new accounting software or accounting process redesign, a lot of paperwork can be reduced in budgeting, planning and forecasting activities across the enterprise.
The multiple process streams involving manual spreadsheets, reconciliation, re-keying and e-mails can be substantially reduced and create the opportunity to collapse the entire planning cycle.
My company had purchased new accounting software three years ago. Our MIS Dept. had spent over two years to revised it and connected it to our internal website "Applewood". All the employees now can log in the web and perform various type kinds of accounting and business functions. For example: we can perform functions such as, account status inquiry, funds availability inquiry, check request inquiry, invoice inquiry, purchase order inquiry, and vendor inquiry, etc. We can also download different kind reports, and access all prior years' data.
Information Technology is about combining the best technology available to process and manage information so that it can...