Talking about company operations cannot be separated from technology and the Accounting Information System or abbreviated as SIA. The reason is, these two components have a big role. Considering this, it is important to understand this concept starting from the definition of accounting information systems according to experts to its application.
Understanding Accounting Information Systems According to Experts
Before discussing accounting information systems in more depth. It is important for you to understand the definition of this concept. To make it easy to understand, below are several definitions of SIA according to experts that can be used as references.
- Wilkinson
According to Wilkinson, the definition of AIS is a system that includes all accounting functions and activities. This process is carried out with the aim of considering the impact of the company’s internal and external operations on economic resources.
- Nugroho Widjajanto
Nugroho Widjajanto in his book entitled “Accounting Information Systems” explains that AIS is a collection of data consisting of an arrangement of records, forms, tools and equipment such as computers, communication tools, implementing staff and reports that are connected to each other.
- Romney and Steinbart
According to Romney & Steinbart in the book by Fitriasari (2004), it is explained that AIS is a series consisting of various interconnected components. Starting from implementing staff, procedures, data, software and technological infrastructure.
- Laudon
According to Laudon in the book entitled ” Accounting Information Systems ” by Azhar Susanto (2013), it is explained that AIS is a series of components that have relationships and cooperation with the aim of collecting, storing and processing company economic information.
- William S. Hopwood and George H. Bodnar
William S. Hopwood & George H. Bodnar define AIS as a collection of data sources specifically designed to transform various company economic data into a report. This information is then used as basic material for decision making. - Jones and Rama
The definition of AIS according to Jones & Rama is part of a management information system that concentrates in the field of providing accounting and financial reports. All of this is compared with other data periodically and routinely. - Mulyadi
According to Mulyadi SIA is a form of accounting information system that concentrates on the process of creating, presenting and improving information to the authorities managing business activities to be used as a basis for policy making.
Example of an Accounting Information System Implementation Book
The following is a reference book about AIS accompanied by examples of its application. The goal is to make it easier to understand.
One of the good SIA references to use as a source for learning is entitled accounting information systems written by Faiz Zamzami, et al. The book is very interesting, the articles contain various basic concepts.
Main Objectives of Accounting Information Systems
After understanding briefly the meaning of accounting information systems according to experts. In order to deepen your knowledge about AIS, it is also important for you to learn the main objectives of this activity, including the following:
- Supporting the Stewardship Function of Management
According to Hall (2001), the main objective of developing an accounting information system is to support the stewardship function . As is known, in the process of managing company operations, management is responsible for organizing and managing resources correctly. Of course, in carrying out these duties and responsibilities, making the correct policies requires consideration. This is why accounting information systems are designed to produce economic reports.
- Supporting the Decision Making Process
As previously explained, the accounting information system is designed to create reports through a series of processes from recording, identification, processing to presentation in the form of financial data. Next, the financial data includes all the company’s economic transactions. The report will later be submitted to the authorities, in this case the manager, to be used as a basis for consideration in determining new policies and decisions. - Supporting Company Operations
The main aim of the accounting information system is to assist in providing company economic information, which in turn will be very necessary for many parties to carry out their duties and responsibilities. The economic reports resulting from the accounting information system indirectly support and increase company efficiency. , so that all work processes can run effectively and efficiently.
Main Functions of Accounting Information Systems
Accounting information systems are structured not only on the basis of objectives. However, in its implementation SIA is also designed with several main functions. These include the following:
- Collection and Storage of Business Data
The main function of preparing an accounting information system is collecting and storing data related to the company’s business activities. All of this is done so that all activities run effectively and efficiently. The process itself starts from capturing data on all transactions according to the source documents. Then record it back in the journal based on its category. Next, post it in the ledger.
- Providing Information as a Basis for Decision Making
The accounting information system has the main function of providing financial reports as a basis for consideration for making decisions by management. This data contains all company transactions. So far in the manual system, the information produced by SIA is in the form of reports. Where the document has two main categories, namely financial and managerial. Of course, each one has different details. - Creating Adequate Internal Control
The accounting information system also functions to create adequate internal control. In this case, specifically ensuring that economic reports are prepared according to procedures and rules so that the results are valid and can be trusted. Accounting information systems are specifically designed to ensure that all business activities run efficiently and according to objectives. Not only that, with SIA the company’s wealth or assets can be maintained.
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Accounting Information System Components
It is not enough just to know the meaning, purpose and main function. To understand the accounting information system more deeply, it is also important for you to study the AIS components which consist of 6 blocks, which include:
- Input Block
Input block is an AIS component in the form of the process of entering data into an accounting information system. In this case, everything is done following certain rules and methods, starting from identification, authorization, layout and processing.
- Block Model
Block model is a data processing process that starts from input using various methods so that it can produce a report. This information will later be used to answer a question.
- Output Block
The meaning of output block is clear from its name. At this stage the accounting information system produces a product in the form of a report. Later, this document will be given to all parties who have authority from various levels of management. - Database Block
As the name suggests, this block means a place to store all forms of data. However, everything will be saved based on its respective category. Basically, all information is classified into 2 types, namely physical and logical. - Technology Block
This block consists of technology used as a tool to support the accounting information system. Generally, these devices are computer-based so they can capture, access data, run models, store and produce reports. - Control Block:
From a series of activities in an accounting information system that are interrelated, protection is needed to avoid various problems such as fire, hacking, embezzlement, sabotage and many others, so a control block is needed as a form of control.
General Obstacles in Implementing Accounting Information Systems
The implementation of an accounting information system certainly does not always run smoothly and often encounters obstacles and obstacles. Among the many obstacles, there are several things that commonly occur, namely as follows:
- Requires Longer Time to Adapt
One of the most common obstacles that occur in implementing an accounting information system is that it requires a relatively long adaptation time. The reason is, most human resources are not ready and require special training.
- Unavailability of Accounting Software and Computer Devices
In order to streamline the accounting information system and maintain security, accounting software and computer equipment are needed. However, most companies do not yet have these tools , which hinders the implementation of AIS. - Incomplete Information Results:
Generally, the problem that often occurs in implementing an accounting information system is that the report results are incomplete. So to carry out verification it takes longer than the target.
Accounting Information Systems in Companies
Before discussing information systems in companies in more depth. Do you understand what SIA is? As explained, this concept describes a series of activities that include the process of collecting, processing and storing financial data.
SIA’s role is very important and needed by the company. The reason is, this system has many important elements in the computer-based accounting cycle so that it can produce economic information.
Generally, AIS practices in companies use a combination of traditional and modern accounting principles. Later, the results of the data processing will produce information that will be reported to the authorities to be used as a basis for consideration when making decisions.
With the development of information technology and the increase in Internet users, we can also see various start-up companies emerging which creates a need to carry out data and information processing activities more effectively.
The Importance of an Accounting Information System that is Managed Well and Correctly
Maybe most people ask the importance of managing accounting information systems properly and correctly. Talking about this, it needs to be understood that SIA has roles and functions that have an impact on company operations.
With this accounting information system, it really helps business processes become more effective and efficient. However, if all these processes are not designed well it will actually hinder everything. That is one of the reasons why it is important for SIA to be managed properly and correctly.
Apart from that, with SIA all tasks can be carried out based on standard procedures so that the results are also valid as long as they are done well and. However, if the process is carried out haphazardly, the resulting information is certainly questionable.
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AIS elements
The accounting information system consists of several components that are closely related to each other. Some of the important elements of SIA include:
- Human Resources (HR)
One of the most important components is human resources. Human resources in this case are humans who act as implementing subjects for accounting information systems. Without an actor, of course the SIA cannot run. Seeing this principle, in preparing the SIA it is very important to consider various aspects of the implementing subject. Starting from social conditions, education and human psychology. If the quality of human resources is good, they will definitely be able to understand business processes quickly.
- Accounting Procedures
The next component of AIS is procedures that include principles, standards and company culture. In preparing an information system, it is important to study and understand various types of accounting. From the many types of accounting, choose and develop a new formulation according to the company’s needs. Next, enter the design into a procedure in the AIS.
- Data Form, Coding, Database Form
, coding and database are AIS components that are directly interconnected. These tools have the function of capturing data, whether in the form of lists, schemes, programs or descriptions. From the collected material, coding is then carried out to produce a collection of data with various categories that are interconnected. Later the files will be saved on the computer.
- Accounting Software and Hardware
As is known, SIA is closely related to accounting, so to support its implementation so that it runs smoothly, software is needed. Getting this software is quite easy through business partners. In order to support the smooth implementation of SIA, it is not enough just to have software , but also requires hardware. The role of this hardware is very important to carry out various tasks such as processing data, receiving input and storing information.
Use of Accounting Information Systems
Talking about accounting information systems is not enough just to learn the concept. But more than that, especially for people who have an interest and are responsible for managing company management, they must also understand how to use it.
Using AIS certainly requires a database for storing all forms of accounting information. The structure itself is usually created using a query programming language so that the data can be edited and updated.
Not only that, SIA generally uses a platform with high security. This prevents various disturbances from occurring. Managers also need policies and procedures so that all customer data and business information is kept safe.
Learn the process starting from how to record documents until they are converted into supporting information in making management decisions through the book Accounting Information Systems: Design & Implementation which also provides various application examples.
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Benefits of Information Systems for Companies
After talking about the importance of accounting information systems being managed well and correctly. Next, you also need to know and study the benefits of AIS for companies, which include:
- Benefits of Inter-Departmental SIA
One of the benefits of having SIA is that it can be felt between departments. As is known, in a company, of course each section has its own duties but they are interconnected.
With SIA, the distribution of information held by certain departments can be easily and quickly accessed by other departments. Of course, the ease of this process makes carrying out tasks more effective and efficient. - Overall Benefits of AIS
Apart from bringing benefits to departments, the running of this information system provides various good things. One of them is that SIA supports the company’s daily business transaction processing to be more effective and efficient.
Not only that, the financial and management reporting system which is part of SIA can produce valid and trustworthy reports. That way, this material can be used as consideration in making a policy or decision.