The paper "Accounting Information System - Pressure Hydraulics" is a great example of a finance and accounting assignment. The current business world requires business firms to embrace Information Technology to ensure success in management and decision making. The use of traditional accounting and bookkeeping approaches, which are manual, leads to delays in updating of information and processing of sales and orders. This may lead to loss of sales and loss of revenue for a company. This has been evident in Pressure Hydraulics, a local company that has been using manual accounting systems.
The significance of using Information Technology by introducing automated accounting information systems includes speed and automatic document production. It ensures quick entry of data in a computer that has stored databases of customers, stock records and supplier details, compared to manual processing (Banerjee, 2010). Additionally, the processing of invoices, purchase orders, statements, credit notes and other documents is fast and accurate. Pressure Hydraulics should install such systems to ensure that there is efficiency, accuracy and reliability. Accounting information is vital in key decision making. Therefore, there is a need for accuracy, and an automated accounting information system reduces the possibility of errors in transactions because only one entry is required.
These accounting systems update accounting records automatically. They also make information available instantly to different users, in various locations (Sofat & Hiro, 2008). The use of accounting information systems in a business lead to ease management of information. This is because they produce information that helps management to monitor and control the organisation. The systems also ensure the display of legible figures to avoid poor figure related errors.
It should be noted that accounting information systems reduce the time spent by workers in preparing the accounts hence reducing audit expenses because they produce neat, accurate and up to date records. There is a significant reduction of stress among managers because the systems broaden what management knows. Finally, it allows easy trading in multiple currencies and updates. Pressure Hydraulics requires one such automated accounting information system to solve its current problems in financial information management.
Agrawal, N., & Smith, S. A. 2008. Retail Supply Chain Management: Quantitative Models and Empirical Studies. Berlin: Springer Publishers.
Banerjee, B. 2010. Accountancy for Class XI. New Delhi: PHI Learning Press.
Gilbertson, C. B., & Lehman, M. W. 2011. Century 21 Accounting. General Journal, 2012 Copyright Update. Mason: South-WesternCengage Learning Press.
Hartmann, H. I. 1986. Technology and Women's Employment. Washington, DC: National Academic Press.
Pohlman, R. A., & Gardiner, G. S. 2000. Value Driven Management: How to Create and Maximize Value over Time for Organizational Success. New York: AMACOM Publishers.
Rajasekaran, V., & Lalitha, R. 2011. Cost Accounting. Delhi : Pearson Education Press.
Singh, M., & Waddell, D. 2004. E-Business Innovation and Change Management. Hershey: Idea Group Publishers.
Sisaye, S. 2000. Organization Change and Development in Management Control Systems: Process Innovation for Internal Auditing and Management Accounting. London : JAI Press.
Sofat, R., & Hiro, P. 2008. Basic Accounting. New Delhi: Prentice Hall Press.