Practical Skills in Accounting Information Systems - Assignment Example

A Report on Accounting Information Systems Table of Contents Table of Contents 1 Practical skills in accounting information systems 2 How Materials and Practices in Accounting Information System May Be Translated In To Business Careers 3 Lessons learnt from accounting information systems 6 References 7 Practical skills in accounting information systems Accounting information systems are a collection of systems, processing and storage of accounting and financial data which is used for assessment. It’s a computer based system of tracking accounting activities in line with resources of information technology. The purpose of these skills in accounting is to compensation inventiveness and value addition, instilling analysis as well as crisis solving skills, budding good personality in information systems and appraisal of information technology, provide skilled services, improving value of living in the course of sharing business applications as (ISC 2012) explains. Skills in accounting information systems include; communication skills, this skill is important because of sharing information, coordinating with others, to resolve and substantiate arrangement necessities with others, to listen in and comprehend; analysis and explore skills for accessing, analyze and administration of financial services and records; executive skills as well as the ability to map and run work and correctly program activities of others; crisis solving skills to spot every system issue that contain the imminent to brunt the organization and to build up options to decide these issues when they crop up; learning skills to preserve knowledge of the fiscal system features, necessities and measures; vastly developed information technology skills pro developing incorporated financial systems and by means of databases, the spreadsheets and information on internet; numerical skills for calculating financial data and analysis of that calculations; highly sensitive literacy skills meant for preparing well written systems provisions and direction manuals for the organization and company units as (CFO 2004) pets it. The GRC systems help in compliance and risk of a bus2iness which work against agility. Explaining GRC systems (Rasmussen 2012) argued that this burdens the business because of lack of a common stand for risk and compliance which comes with significant costs. The GRC therefore help a business to effectively manage and be accountable for risk and compliance. These skills combined with the accounting knowledge helps accountants to prepare accurate and good financial statements. The accounting information systems helps in bringing all these skills together for a common purpose that is to aid preparation and reporting of financial statement. Other accounting information systems are the COBIT 5; they help businesses create finest value from information technology. This is by maintaining stability between realizing gains and optimizing the levels of risk and resource use. How Materials and Practices in Accounting Information System May Be Translated In To Business Careers This materials and practices are found in business information systems. A business information system is collections of interconnected apparatus that work cooperatively to transmit out input, processing, yield and manage actions in regulate to change figures in to information yield that can be able to be used to maintain forecasting, scheduling, control, harmonization, decision assembly and operational actions in an organization as (Laudon 2007) asserts. Some of the business careers that can emanate from accounting information systems include Outsourcing services – with good knowledge and skills from accounting information systems a person may start offering his or her services at a fee to firms and organizations. A number of firms including large multinationals and small firms are outsourcing their accounting activities as (DiGregorio 2009) continues to explain. Also (King 2005) notes that firms outsource transactional activities like pay roll processing, tax planning and compliance. This has shown a great success from outsourcing. For example mayne group awarded Infosys a three year contract to take manage application support and the transform management for the firm’s finance and payroll systems. The ERP facilitates information flow from different parts of an enterprise. Sharing of information to facilitate the decision makers to have a wide view of the information needed which is consistent, reliable and timely as (Mendelson 2000) esserts. Financial analyst –this involves translating financial needs in to understandable information. This involves collecting all financial data and working it out in to information which is useful for planning and for decision making purposes. Businesses use account information systems to prepare their financial statements and to maximize their profit as well as minimize their costs. An accountant with accounting information statements skills and knowledge processes the right concept, methods and tolls for analyzing accounting and financial information, and give advice. This is a career from learning accounting information systems and practicing them. Areas of analyst include tax compliance, financial systems and supply chain management (Chicago 2013). Developing accounting software – a person with accounting information system knowledge and skills would develop accounting softwares and sell them to organizations and firms. This is in high demand as firms are moving towards automating their systems to keep afloat with the competitiveness of the market. Further there is more concern from the stake holders for the companies to provide credible information. This would be used for investment purposes by the investors. The implementation and management of these accounting softwares would call for the services of the developer, this adds to the benefit of producing the software. This is as a result of the owner of the software is the only who knows how it operates and would eventually pass this to the staff of the firms. By this a person would have made a career for him/her self fully supportive as (Ulucan 2012) noted. Crisis management operator – accounting information systems person would spearhead the crisis management because of the knowledge and skills that he possesses. Crisis solving skills is important and this would help in solving problems before they effect the whole organization. Accounting information system provides crucial skills that help in solving financial and accounting problems. Some accounting information may be inaccurate or incomplete; this would call for the services of an accountant with special skills and knowledge in that field. Processing and supplying information – (Schehls 1994) noted that the accounting systems comprise two key activities according to schehls grouping regarding activities of a business; dispensation of information and supplying information. The sole function of the accounting systems is to accomplish the reporting, registrative and accounting duties. An accountant with accounting skills and knowledge will be able to provide these services to a firm. To supply information of the uppermost possible level for decision assembly by the managers would not be difficult. This is achievable because of the familiarity of the connections, purposes, horizontal and vertical relations, personal aspects, basic data, codes, transformations, inputs and output of the business. Classifying these activities into income, expenditure and handling of resources provides the basis for conducting accounting systems analysis. COSO are also very important in the organization. They go over and above the auditor’s work of auditing and this will provide an organization with a clear course of their organization. They are planned to provide logical guarantee regarding the attainment of objectives. COSO also enables organizations to efficiently and effectively maintain and develop systems for internal control that will enhance the possibility of helping the organization achieve its objectives as well as adapt to changes in the operations of a business environment as (PWC 2011) addressed. Offering financial services to the community organizations – This informational accounting system represents a well thought-out group of compound information which is obtained by handing out the information furnished by a number of sources and with the purpose of required for organizing, administration and mounting the efficient activity. The significance of such arrangement comes commencing the thought that it always assures the comprehension in at all moments about the position and execution of the efficient entities in common, contribution of information concerning the means in which the possessions are used, concerning the survival of a number of deficiencies as well as the necessity to evaluate them. In support of the operators of the public utilities services together with the accounting information systems which can as well be used in course of preparation and organizing of the action for a good administration of the precise actions is significant and as well the information that is helpful for adopting or otherwise the decisions concerning the investments to machines or allocation of networks. Some components of the accounting systems have information with numbers which can have difficulties in interpretation to users who don’t have accounting knowledge and skills as (Morariu 2008) explains. This creates work for accounting systems. COBIT 5 - enables governing and management of information in a more holistic manner for the whole organization or business functions, it takes in to account all areas of functions of a business and responsibility areas of all stakeholders. It also enables generic use for profit and nonprofit organizations. Data and network communication – this attracts interest from small and large accounting companies as well as organizations. The skills and knowledge help them to serve as the liaison accounting systems users and the technical staff in charge of information systems. They can also serve as designers and deployers of information technology to improve organizations accounting systems. The concept learned would also help have a career as a forensic accountant. A forensic accounting describes arrangements which consequence from genuine disputes resulting from practice of accountancy. Forensic means suitable for use and that standard and potential outcome that forensic accountants generally have to work as (Crumbly 2005) notes. It uses auditing, accounting and investigation skills to carry out investigations it to theft and fraud. The aim is to catch perpetrators. This forensic accounting is aided by the skills and knowledge of the accounting information systems as (Ulucan 2012) concludes. Lessons learnt from accounting information systems I have learned that accounting information systems can be used as lifeline and or backbone of the business especially as the accounting systems include but not limited to records, people, equipments and methods. Accounting information systems uses the source documents which include the cheques, cash register receipts, packing slips as well as the employees’ time cards. Scanners both at the register and the frequency guns of the radio are used as the input devices which maintain the inventory and pricing information. Information processors are reserved at the stored up level and as well at the house office. Using accounting information systems administration can take the statement and evaluates the sales, payroll and the credit cards. A large amount of the information is stored at the house office as the largest part of operations take place there. The information obtained from each day reports comes from here, like the sales estimate payroll projections among others. Accounting information systems as I have learned help an organization to cut costs by a`1iding the performance of most of the activities of the organization, it links up all departments of the organization performing the role of coordinating various departments of the organization internally and externally. Accounting systems also helps in streamlining the work of the organization to the required standards. References Crumbly D, Heitger E & Smith S 2005 CCH Group Forensic and investigative accounting Chicago DiGregorio, D Musteen, M & Thomas, E 2009 Journal of International Business Studies Offshore outsourcing as a source of international competitiveness for SMEs, 40:969–988 ISC 2012 FNSACC505A industry skills council of Australia (ISC) Establish and maintain accounting information systems, generated 27 May 2012. King, A 2005 Sydney morning herald Mayne goes offshore in IT shake-up Sydney Laudon, C & Laudon, P 2007 Pearson education essentials of business information systems, 7th edn, New Jersey. Morariu, A 2008 Audit Financial Magazine 3 IFRS - global accounting norms characterized by quality Bucharest. SCHEHL, M 1994 Duncker & Humblot Cost accounting of industrial companies from the background of external and internal structure change Berlin. Mendelson, H 2000 Graduate School of Business, Stanford University ERP Overview Stanford. PWC, 2011 committee for sponsoring organisations Internal control - intergrated framework New York. Rasmussen, M 2012 Importance of a Common Architecture in GRC Systems. Retrieved 5 20, 2013, from Sai global: http://compliance.saiglobal.com/community/know/whitepapers/item/4038-common-architecture-grc-platforms. Read More