Usefulness of Accounting Information Systems
Usefulness of Accounting Information Systems
Usefulness of Accounting Information Systems
Abstract
Accounting information systems have an important role Keywords: Usefulness, Accounting, Information, Systems,
for the progress of a company. Accounting information Business, Decision Making
systems produce financial information. Financial
information is also referred to as financial statements.
The accounting information system collects data in the
form of transactions that occur in companies such as
purchase transactions, sales transactions, cash
disbursements transactions and cash receipt transactions.
Information in company financial reports is needed by
both internal and external parties. The financial
statements must meet the requirements, that is, have
quality characteristics. To run an Accounting Information
System (AIS), elements are needed so that the system can
run properly and correctly. namely: (1) Human resources
(HR) who have been trained; (2) Financial Data Form; (3)
Hardware; (4) Software; (5) Procedure; (6) communication
technology network; (7) database. The quality
characteristics of financial statements consist of
comprehensiveness, relevance, materiality, reliability,
honest presentation, substance outperforming form,
neutrality, sound judgment, and completeness. The
accounting information system functions to oversee all
the company's financial activities and collect and store
data on the company's financial activities or transactions.
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Usefulness Of Accounting Information Systems For Businesses
stakeholders with reports on the economy and state of information produced by SIA, namely Financial
the company. Financial transaction activities in a Accounting Information in the form of financial reports
company are processed through accounting. Accounting and Management Accounting Information which is used
includes the identification process, the measurement for decision making by companies. The SIA scope tracks a
process, and the reporting process for producing financial large amount of information regarding sales orders, sales
reports. Accounting has benefits both for internal parties in units and currency, cash collectors, purchase orders,
and for external parties. Internal parties are parties that receipt of goods, payments, salaries and hours worked.
are directly related to company operations, for example,
company leaders. As for external parties, namely parties LITERATURE REVIEW
that are not directly related to the company, for example, The purpose of an accounting information system is to
company owners, creditors, government agencies, and present accounting information to various parties who
the community. The government is a user of accounting need this information, both internal and external parties.
information that is included in external parties. The Hall (2001, p.18), "the purpose of compiling information
government as an institution that manages state finances systems is as follows: objectives of Accounting
must monitor company performance. This control is Information Systems
mainly related to taxes and the use of labor. Accounting 1) To support the management function (stewardship)
information must be understandable. Therefore, the of the management of an organization/company,
preparation of the report is adjusted to the because management is responsible for informing the
understanding and knowledge of its users. Accounting organization and use of organizational resources in
information is said to be credible if it meets the criteria, order to achieve the organization's goals.
which is testable, neutral, and presents actual data. Apart 2) To support management decision making, because
from that, the predictive value and feedback also need information systems provide information needed by
attention. This means that the data currently owned can management to carry out decision-making
be used to predict future conditions. Due to the large responsibilities.
amount of benefits required for the benefit of various 3) To support the day by day operations of the company.
parties, the financial statements must be presented on Information systems help operational personnel to
time. Timeliness is important to avoid delay in decision work more effectively and efficiently.
making. For the government itself, the accuracy of The following is a description of the objectives of the
companies in reporting finances is an assessment of accounting information system
whether their performance is good or bad. A good 1) Collecting and storing data about activities and
company will certainly maintain all of its activities by transactions
prioritizing quality. 2) Process data into information that can be used in the
The government as the decision maker of state finance decision-making process related to business planning
must use accounting information correctly. Because all and control.
government policies will affect a country's economic 3) Perform proper control over company assets.
growth. Prosperity can be achieved if the government 4) Cost and time efficiency on financial performance.
takes the right policies. The role of the accounting 5) Presentation of financial data in a systematic and
information system for the company, in this case is accurate manner in the appropriate accounting period.
clearly very important. Because accounting information As for some of the objectives of the accounting
systems together with other information systems provide information system stated by Setiawati (2011: 5),
information needed by management as a basis for including:
decision making. For parties outside the company, the 1) Safeguarding company property/assets. The assets in
role of accounting information systems is equally question include the company's cash, merchandise
important. As a producer of information in the form of inventory, including the company's fixed assets.
financial reports that are useful as a basis for assessment 2) Produce a variety of information for decision making.
and analysis of the condition of the company. From these 3) Produce information for external parties.
reports, parties outside the company can make the right 4) Produce information for employee or division
decisions. The role of information systems is inseparable performance appraisals.
from the functions it performs. Not only data processing 5) Provide past data for audit purposes (inspection).
or processing, but accounting information systems also 6) Produce information for the preparation and
carry out functions ranging from data collection, data evaluation of company budgets.
processing or processing, data management, data control 7) Produce information needed in planning and control
and security, and of course the function of providing activities.
information. And the accounting information system is a Accounting information that is informed in the form of
structure that is one of the entities that uses hardware to company financial reports is a medium of communication
convert financial / accounting transaction data into between the company's business activities and parties
accounting information with the aim of meeting the with an interest in the company's financial position and
information needs of its users. With this it can be business development. Accounting information has uses
concluded that AIS is very important for companies and that are very dependent on the user. The following is the
organizations. AIS has many important roles in a use of accounting information for:
company, such as improving quality and reducing costs in 1) Chairman of the company. (a) As proof of
producing goods and services, improving decision making, accountability to the owner of the company for the
and creating a competitive advantage. Of the many AIS trust given to him to manage the company; (b) As a
functions, there are 3 main functions established by SIA tool for assessing the implementation of the
in companies, besides being used for decision making, company's operational activities, both as a whole, in
they also consist of collecting and storing transaction data, sections and individuals who are given authority and
processing data into information that can be, and responsibility; (c) As a tool to measure the level of
controlling company assets. There are 2 accounting costs of business activities carried out by the company;
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Usefulness Of Accounting Information Systems For Businesses
(d) As a material for consideration in controlling the challenges of the global world and free markets. All of
company activities; (e) As a material for consideration these things are of course inseparable from existing
in preparing a program of activities in the coming resources so that a management must be able to adjust it
period; (f) As a consideration in making decisions; (g) so that there is no waste.
This is to determine the condition of the company and Accounting Information Systems for
the company's financial position. Companies/Organizations
2) Company owner. In a company in the form of a limited The functions formed by the Accounting Information
liability company or a company whose leadership is System in an organization include:
transferred to someone else, financial reports are 1. Collecting and storing data about activities and
needed by the owner of the company. Financial transactions.
statements for company owners function as: (a) An 2. Processing data into information that can be used in
assessment tool for the results that have been the decision making process.
achieved by the company leadership; (b) The basis for 3. Perform proper control over organizational assets.
determining the estimated future profits and the Various non-financial transactions that cannot be
estimated development of the share price it owns; processed by an ordinary Accounting Information System
(c)Creditors and potential creditors. are processed by the Management Information System.
3) Creditors are people or entities that provide loans in The benefits of accounting information for the business
the form of money or goods to companies. For 1) Produce Flexible and Actual Information.
creditors and potential creditors, the financial report Management provides flexible information because
serves as a material for consideration and decision in the management accounting information system is
granting credit, because the results of the analysis of not bound by any formal criteria that define the
financial statements can be seen whether the nature of its processes, inputs, or outputs that are
company to be given a loan can repay the loan at tailored to management's primary objectives. Actual
maturity or not. From the financial report, it can also or up-to-date information is better than old, complete
be seen whether the loan provided is sufficiently information as long as it is in accordance with
guaranteed or not. accounting principles.
4) Investors and potential investors. People or entities 2) Assisting the planning of corporate activities. The
who invest in a company are called investors. scope of management accounting provides financial
Investment can be done in two ways, namely buying a information that can be used in the preparation of
portion of the company's share capital or providing a activity plans because this information serves as a
loan to the company concerned which is supported by reference for the allocation of resources owned by the
bonds. For investors and potential investors, financial company. Management accounting also provides
reports are useful as a material for consideration in information as feedback for management regarding
investing in a company. In addition, financial reports the implementation of the activity plans that have
are useful for assessing the company's ability to been prepared. Management accounting information
provide profits or pay dividends to investors. is also needed by management to plan company
5) Government agencies. Government agencies with an activities for the future such as the next 1 year.
interest in financial reports include: (a) tax office. For Planning activities consist of making decisions and
the Tax Office, the company's financial statements selecting alternative actions from various options that
serve as the basis for determining the income tax that may be implemented in the future. Decision-making
is borne by the company; (b) Capital Market actually includes the formulation of the problem,
Development Agency (Bapepam). Bapepam uses determining various alternatives for appropriate
financial reports as a financial monitoring tool for action to solve the problem, and analysis of the
companies that sell their shares through the capital consequences of each alternative for these actions so
market; (c) Department of Industry and Commerce. that the best alternative choice that will be
Financial reports are used for statistical data implemented in the future is the best choice.
collection purposes. 3) Assisting Management in Decision Making. The
6) Employees. Employees also have an interest in benefits of management accounting for the company,
financial statements, because financial statements especially for management, lie in the process of
function as follows: (a) this is to determine the level of analyzing the consequences of every possible
ability of the company in paying salaries and other alternative action in the decision-making process.
social security; (b) to assess the development and Management must make decisions to choose the best
prospects of the company in determining the choice of alternative action among the existing alternative
steps that must be taken in connection with the actions. The decision of the best of good things must
continuity of its work; (c) as a basis for assessing the be considered in terms of various aspects including
eligibility level of the bonus it receives compared to risks and other possible negatives.
the company's profits in the period concerned. 4) Assisting the Management to Recognize the Ins and
Outs of the Company. Management is the ranks that
RESULT AND DISCUSSION lead a company which is divided into several parts
Management in a company must depend on management according to their respective competences. A good
accounting information made in accordance with the manager is a manager who knows the internal and
management accountant's code of ethics. This external environment well. If the management cannot
information is obtained from data in the management recognize or know in detail the ins and outs of the
information system and accounting information system in company including the document flow chart, then it
the form of notes to financial reports. If all the theories can be ascertained that the performance is not
that have been studied can be implemented properly optimal because it does not cover all parts.
according to the provisions, a company will be able to 5) Assisting Management in Performance Appraisal.
make efficiency and gain company progress to respond to Management must assess the performance of each
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Usefulness Of Accounting Information Systems For Businesses
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