Report about an Accounting Information Systems Disaster - Essay Example

Issues include: “Cost and errors associated with manual creation and reconciliation of documentation. Lack of transparency in inventory and cash positions, when goods are in the supply chain. Disputes arising from inaccurate or missing data. Fragmented point solutions that do not address the complete end-to-end processes of the trade cycle” (Ramaswamy et al. n.d., p. 38). All the areas of business operations need to be considered, and a meeting of the team members needs to be arranged to inform them about the changeover.

The changeover is made in such a way that it does not interrupt the functioning of the organization, and that which doesn’t increase time and money. System integration helps in attaining the goals of the organization by raising transaction process effectiveness, and in the excellence of the choice made. “Integrated Accounting Systems give you the ability to seamlessly transfer data between your different systems and from your business accounting system” (Accounting Systems Integration 2001).

It involves the integration of various areas of the business, with the accounting information system. The areas include finance, management, and marketing. The financial management and the marketing personnels need to be very directive in their decisions, and they should be informed about the importance and functioning of the new system, as they are all involved in the new accounting information system. End-User Involvement: The ideas and suggestions of the managers, accountants, auditors, and the operations personnel should be considered in implementing the new accounting information system.

“No single quality of management practice is more highly correlated with success than employee participation. The question then becomes how to structure this participation to best ensure its success for the employee, the project and the organization” (Vaughan 1876, p. 2). Upgrading of the new system results in a similar process, and the end users carefully evaluate the changes, promote in an effective manner, and get trained. Appropriate training should be given to the users who lack technical practices by enabling them to avail the services of the software technicians, to perform the accounting system in a more successful way.

More concentration should be given to the accounting area. As end users, the accountants must be given a clear idea of their requirements to the professionals, who outline the system. The main reason for design fault and that which makes system disaster is the lack of end user involvement. Consideration of Off-the-Shelf or Tailor-Made Packages: Tailor made package is identified as a 'bespoke' method. “These packages are normally produced by a specialist computer software firm who has experience in producing accounting packages.

Technically, these packages are available for any firm, but given the expense of a bespoke system and the general low cost of a 'off the shelf' system (one that can be used by any firm), most firms will simply purchase a general package” (Computers in Accounting n.d.). An accounting information system is a method of collection, storage and processing of accounting and financial data is utilized by decision makers. It is normally a computer-based method for