Accounting Information System: Specific Characteristics Of A Computerized Accounting System

Executive Summary

Since Information technologies develop progressively, the manual accounting information system have become insufficient for decision making, as a result, business firms which operate in either developing or developed economics consider computerized accounting system as an effective mean to ensures the effectiveness and efficiency of information flow in recording, storing processing, and analyzing financial data. This research paper will highlight the concept of Accounting Information System generally, and Computerized Accounting Information system specifically.

Introduction

Running any kind of business in which a various business transactions occur; a business firm needs to ensure the accuracy while storing its

Accounting Framework

This term refers to a collection of principles, coding and grouping framework of accounting. It is called the application environment of the computerized accounting System.

2. Operating Procedure

This term refers to a well-defined and designed operating process emerged appropriately with the operating environment of the business firm.

Specific Characteristics of Computerized Accounting System

1. Effective computerized Accounting System ensures fast preparation of different accounts and the availability of Financial statements on time.

2. It assures control over accounting activities and records.

3. Using a computerized Accounting Information System reduces errors and mistakes to minimum while processing financial data of different business transactions.

4. It adjusts to the present and future requirements of the business.

3. As data processing cycle is computerized, thus ensures accuracy in data input and information output.

5. It promotes the workflow of a firm’s Financial statements.

6. It provides a secure environment for a firm’s financial information and allows managers to restrict unauthorized access of any employee to a particular financial