Essay Sample on Accounting Information Systems: Essential Tool for All Organizations for Strategic Accounting

Introduction

Accounting information systems (AIS) tools are incorporated in the information technology field to help in the management and to control of economic and financial areas within an organization. However, there have been significant developments in technology, enabling the generation and use of accounting information from a strategic standpoint. AIS is an essential tool for all organizations, and whether profit or non-profit oriented, perhaps each organization need to maintain the AISs. The systems need to be up to date, and sometimes it calls for the replacement of an existing system with a new one to meet the technological advancements among other factors.

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Advantages and Disadvantages of Buying a New System

One of the benefits of buying a new accounting information system is for efficiency. One reason why organizations use AIS is to fasten their processes. It is, therefore, irrelevant to keep accounting information that cannot meet this expectation. Buying a new AIS tool will make the processes data processing faster. When hardware such as scanners is used, contrary to the current system, then the accounting information will be generated automatically without much ado. The information required will almost be available immediately, and the cost of the computers and other hardware are low. They avail a user-friendly and cheaper accounting software that makes AIS affordable.

Another advantage of a new AIS is that it will lead to improved safety. Data entered into a compared is entirely safe. The use of an old system is quite insecure, especially when the system cannot be regularly backed up like the Make Your Business Profitable (MYBP). However, with a new AIS, you can periodically perform system backups, and hence the chances of losing data are rare.

With a new AIS, the speed will be one of the significant values acquired. Speed is the main benefit in using any accounting information system in terms of processing task. Therefore, the inability of the current AIS tool to achieve this significant advantage is an inconvenience to the organization. Data is entered once then it can be used again and again in the compilation of report by merely pressing a button.

Despite the immense benefits of using an accounting information system, there are also some shortcomings. One of the key advantages in the use of AIS is the risk of losing information if a computer virus attacks the computer. There are advancements in anti-virus software, but still, no machine can be 100 percent immune to attacks by a virus. Another disadvantage is the use of AIS is the power failure, which may result in the loss of data if not correctly saved. Lastly, information systems in computers are usually prone to fraud, where the external and internal controls are not proper.

Security Risks Associated With Buying a New System

The first security risk that may be related to the buying of a new system is an error in software and malfunction of the equipment. The new hardware may have failures, the software may have glitches, and the operating system may also fail. Besides, the new accounting system may also have undetected data transmission errors, which are very harmful to the organization. To mitigate against such risk factors, the organization should conduct proper consultation before the acquisition of the information system to ensure that it has a good history of performance and delivery of results.

Since the system is new to the employees, there may be unintentional actions like errors or deletions, or entry of incorrect data. The primary reasons for such risks are human error, failure to follow the established instructions, and personnel who are no well-trained and supervised. To mitigate against this, it is essential to put security controls at the point of data collection to ensure that event data and transaction data are correct, free from errors, and complete. The employees also need to be taken through appropriate training on how to use the new accounting system.