...Advanced Accounting Information Systems 1 INTRODUCTION • We’ll also discuss how to hasten or improve the development process through: – Business process reengineering – Prototyping – Computer-aided software engineering (CASE) tools © 2012 UMT Advanced Accounting Information Systems 2 BUSINESS PROCESS REENGINEERING • Business process reengineering (BPR) is the analysis and redesign of business processes and information systems to achieve significant performance improvements. – Reduces a company to its essential business processes. – Reshapes organizational work practices and information flows to take advantage of technological advancements. © 2012 UMT Advanced Accounting Information Systems 3 BUSINESS PROCESS REENGINEERING • BPR: – Simplifies the system. – Makes it more effective. – Improves a company’s quality and service. • BPR software has been developed to help automate many BPR tasks. © 2012 UMT Advanced Accounting Information Systems 4 BUSINESS PROCESS REENGINEERING • Michael Hammer has set forth several principles that help organizations successfully reengineer business processes: - Organize around outcomes, not tasks. • DO AWAY WITH: Assigning different parts of a business process to different people, with the resulting handoffs, delays, and errors. INSTEAD: Each person’s job is designed around an objective, outcome, or process rather than a task needed to complete a process. • © 2012 UMT Advanced Accounting Information...
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...users of accounting information ii. To discuss how the users use the accounting information iii. To figure out the various uses of accounting information iv. To figure out the uses of accounting information in various sectors. Limitations of the Study: 1. Time constraint 2. Resource constraint Users of Accounting Information: The differences in the decisions divide the users of accounting information into two broad groups. They are: a. Internal Users b. External Users External users can further be divided into two subgroups: 1. “those with direct financial interest” in a firm 2. “those with indirect financial interest” Users of Accounting Information Internal Users External Users With direct financial interest With indirect financial interest External Users of Accounting Information: “This group is made up anyone outside an organization that uses accounting information to make financial decision.” The external users would receive limited financial information from the target company, such as general purpose financial statements; these statements have just enough information to inform external users of the company’s economic position. General purpose statements are in the area of financial accounting, which is the type of accounting aimed at supplying information to users not directly affiliated with the target company. External Users and their ways to use Accounting Information: ...
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...CONVENTIONAL ACCOUNTING SYSTEM AND INFORMATION TECHNOLOGY: EXPERIENCES IN MY PLACES OF WORK. BEING A SEMINAR PAPER PRESENTATION IN ACCOUNTING AND INFORMATION TECHNOLOGY FOR MASTERS IN ACCOUNTING (MAC) DEPARTMENT OF ACCOUNTING FACULTY OF ADMINISTRATION SCHOOL OF POSTGRADUATE STUDIES AHMADU BELLO UNIVERSITY, ZARIA, NIGERIA BY: KALU NNANNA NWONYUKU JUNE, 2013 CONTENTS 1.1.1 INTRODUCTION 1.2.1 THE MEANING OF ACCOUNTING AND ACCOUNTING PROCESS 1.2.2 THE ROLES AND FUNCTION OF ACCOUNTING INFORMATION 1.2.3 BASIC ELEMENTS OF AN ACCOUNTING INFORMATION 1.2.4 BASIC ACCOUNTING POSTULATES AND PRINCIPLES 1.3.1 MEANING OF INFORMATION TECHNOLOGY 1.3.2 ADVENT OF INFORMATION TECHNOLOGY IN ACCOUNTING SYSTEM 1.3.3. THE IMPORTANCE OF INFORMATION TECHNOLOGY TO ACCOUNTING SYSTEM 1.4.1 INFORMATION TECHNOLOGY USE FOR AN ACCOUNTING SYSTEM 1.4.2 SOFTWARE FOR ACCOUNTING INFORMATION SYSTEM 1.4.3 FACTORS TO CONSIDER WHEN CHOOSING ACCOUNTING SOFTWARE 1.4.4 HOW TO CHECK ACCOUNTING SOFTWARE 1.5.1 MERITS OF COMPUTERIZED ACCOUNTING SYSTEM 1.5.2 DEMERITS/LIMITATION...
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...Basic Accounting Concepts and Business Structures Different types of businesses use different accounting methods, small businesses tend to use the cash-basis of accounting, whereas the accrual method is a requirement for large business with revenue more than 5 million. Uniformity of accounting information is important when making decisions for or about a business. A hierarchy of sources provides structure for the generally accepted accounting principles (GAAP). Along with the hierarchy of sources, the Financial Accounting Standards Board (FASB) identify qualitative characteristics to distinguish between useful and inferior information and to ensure accounting information assists in decision making. Qualities of Accounting Information There are internal and external users of accounting information for decision-making. Internal users are managers within a company that use the information to plan, organize, and run the business, “These include marketing managers, production supervisors, finance directors, and company officers” (Kimmel, Weygandt, & Kieso, p. 6, 2007). External users can be investors, “make decisions to buy, hold, or sell stock,” creditors, “suppliers and bankers use accounting information to evaluate the risks of granting credit or lending money” (Kimmel, Weygandt, & Kieso, p. 6, 2007). External users also include taxing authorities, customers, labor unions, and regulatory agencies. For decision makers to make decisions using the information, they have...
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...Back in the day, prior to the widespread use of spread sheet and computer applications, Accountants used journals and ledgers in which they recorded business transactions. Hence the term keeping the books. As computer applications became main stream, this keeping of the books Accountants do, has gradually migrated into computerized spreadsheets. Gradually, Accounting systems dedicated to this function were developed and the term Computerized Accounting was born ADVANTAGES * Faster and efficient in processing of information; * Automatic generation of accounting documents like invoices, cheques and statement of account; * With the larger reductions in the cost of hardware and software and availability of user-friendly accounting software package, it is relatively cheaper like maintaining a manual accounting system; * More timely information can be produced; * No more manual processing of the data- all automatically been posted to the various ledgers/accounts and * Many types of useful reports can be generated for management to make decisions 12.3 NEED AND REQUIREMENTS OF COMPUTERSIED ACCOUNTING The need for computerised accounting arises from advantages of speed, accuracy and lower cost of handling the business transactions. l Numerous Transactions The computerised accounting system is capable of handling large number of transactions with speed and accuracy. l Instant Reporting The computerised accounting system is capable of offering quick and ...
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...THE IMPACT OF INFORMATION TECHNOLOGY ON THE ACCOUNTING PROFESSION IN NIGERIA By: Idongesit Efiong Utah ABSTRACT This research focuses on assessing the impact of information technology on the Nigerian Accounting profession by examining four areas: Impact on the public and private sector, the challenges and reaction to the challenges posed by information technological innovation and information technologies enhancing effect on the Accounting profession. INTRODUCTION It is evident that we are in information driven age where information technology is a driving tool in the public and private sectors. The replacement of mainframe computers with personal computers which were affordable to most users has ushered us into an era of proliferation of information, speed of assess to and ability to disseminate information. The information technology revolution has brought about a drastic change in the business environment, its structure and the business process. Information technology has become a strategic tool that drives the strategic initiatives of organizations and businesses. Manual processes have been replaced with automated processes, routine bookkeeping and recording of financial information is being done electronically, and the ease and speed of transacting business has greatly increases. The accountant as a major player in the public and private sectors cannot afford to be left out. To function properly and competently the accountant must take the changes brought about by information...
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...1.0 Managerial Accounting Managerial accounting is a field of accounting that provides economic and financial information for managers and other internal users (Weygandt, Kimmel & Kieso, 2012). Managerial accounting is an important internal business function. Many companies use managerial accounting to record and report their internal financial information. There are differences between financial accounting and managerial accounting. Financial accounting focuses on preparing financial reports and releasing information to the public while managerial accounting focuses on preparing financial information for internal review and decision making. Managerial accounting offers several important tools for measuring the company operational performance. Common types of managerial accounting include job costing, process costing, activity-based costing and also budgeting. 2.0 Benefits of Managerial Accounting Practices Towards Business Organization Create Competitive Advantage Management accounting can help businesses create a competitive advantage. Many business owners focus on creating consumer goods with lowest-priced and highest-quality product in the market. The ability to review financial information through managerial accounting is important in creating a financial competitive advantage. In 2010, Maxis Berhad wins excellence award in management accounting from the national award for management accounting (NAfMA). One of the winning criteria is the company ability to create...
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...MEANING OF ACCOUNTING: Accounting is famously known as the "language of business". Through the financial statements, the end-product reports in accounting, it delivers information to different users. Accounting is a means through which information about a business entity is communicated. Accounting Definition: Technical definitions of accounting have been published by different accounting bodies. The American Institute of Certified Public Accountants (AICPA) defines accounting as: "the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least of financial character, and interpreting the results thereof." To further understand what accounting is, we must take a look at the different definitions. Accounting as a Science: Accounting is the process of identifying, measuring, and communicating economic information to permit informed judgment and decisions by users of information. Accounting as an Art: Accounting is the art of recording (journalizing), classifying (posting to the ledger), summarizing in a significant manner and in terms of money, transactions and events which are, in part, at least of a financial character, and interpreting the results thereof to interested users. Accounting as an Information System: Accounting is a service activity, which functions to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful...
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...CHAPTER 1 DECISION MAKING AND THE ROLE OF ACCOUNTING TEXT REFERENCE: Hoggett, J.R., Edwards, L., & Medlin, J., Accounting in Australia, Fifth Edition, Chapter 1. OBJECTIVES: When you have studied this chapter, you should be able to: 1. understand the nature of decisions and the decision-making process. 2. appreciate the wide range of economic decisions made in the marketplace. 3. explain the nature of accounting and its main functions. 4. identify the potential users of accounting information. 5. use information to make simple economic decisions. 6. understand the role of accounting information in the decision-making process. 7. understand the differences between accounting for management and accounting for external users. 8. understand how the accounting profession is organised in Australia. 9. identify the different areas of the economy in which accountants work. 10. understand the importance of ethics in business and accounting and how to recognise and handle ethical dilemmas as part of the decision-making process. 1 Chapter 1 STUDY TIPS FOR CHAPTER 1 1. This is an important chapter because it lays the foundation for all topics that will follow. 2. Make sure that you understand each new term as it is introduced. 3. Pay particular attention to the significance of accounting information for decisionmaking processes. 4. Identify the types of activities that are carried out...
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...The Role of Accounting Accounting is often called “the language of business.” Why? Because it communicates so much of the information that owners, managers, and investors need to evaluate a company’s financial performance. These people are all stakeholders in the business—they’re interested in its activities because they’re affected by them. In fact, the purpose of accounting is to help stakeholders make better business decisions by providing them with financial information. Obviously, you wouldn’t try to run an organization or make investment decisions without accurate and timely financial information, and it’s the accountant who prepares this information. More importantly, accountants make sure that stakeholders understand the meaning of financial information, and they work with both individuals and organizations to help them use financial information to deal with business problems. Actually, collecting all the numbers is the easy part—today, all you have to do is start up your accounting software. The hard part is analyzing, interpreting, and communicating the information. Of course, you also have to present everything clearly while effectively interacting with people from every business discipline. In any case, we’re now ready to define accounting as the process of measuring and summarizing business activities, interpreting financial information, and communicating the results to management and other decision makers. Fields of Accounting Accountants typically work in...
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...MANAGEMENT ACCOUNTING: AN OVERVIEW Learning Objectives Distinguish between managerial & financial accounting. Understand the evolution of management accounting. Explain about the IFAC model. Understand how managers can use accounting information to implement strategies. Explain about Relevant Lost & Relevant Regained. 2 Learning Objectives Distinguish between managerial & financial accounting. Understand the evolution of management accounting. Explain about the IFAC model. Understand how managers can use accounting information to implement strategies. Explain about Relevant Lost & Relevant Regained. 3 Accounting System (accumulates financial and managerial accounting data) Managerial Accounting Information for decision making, and control of an organization’s operations. Internal Users Financial Accounting Published financial statements and other financial reports. External Users Managerial Accounting Users of information Managers within company Regulation Financial Accounting Interested outside parties Required. Must comform to Not required because for internal GAAP which is regulated by use only FASB and SEC. Basic accounting system plus Almost exclusively from the Source of Data various other sources basic accounting system Reports often focus on subunits. Reports focus on the enterprise Nature of Reports Based on a combination of in its entirety. Based on and...
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...financial accounting Financial accounting is a specific type of accounting that is used by businesses to prepare reports on the finances of a firm for people outside the organization, such as stockholders or government agencies. It is governed by specific accounting standards to insure uniformity in reporting. What Is Financial Accounting? | eHow.com http://www.ehow.com/about_4710004_what-financial-accounting.html#ixzz29jbLZGeI http://www.investopedia.com/terms/f/financialaccounting.asp#axzz29okOfFVw ----------------------------------------------------------------------------------------------------------------- Major objectives of fa http://www.ehow.com/info_8131759_objectives-financial-accounting.html The objective of financial accounting is to provide information to the end user http://www.blurtit.com/q288083.html Objective of Financial Accounting (FA): The objective of financial accounting is to collect accurate, systematic, and timely financial data and other financial information, and to compile and consolidate it in an organized and systematic way, according to the principles and rules of accounting, for reporting purpose. The financial managers use these reports to assess the financial position of the company through various financial management tools and then the financial position can be compared to, or benchmarked against, the industry norms. http://wiki.answers.com/Q/What_are_the_objectives_of_financial_accounting The purpose of accounting can be...
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...THE CONCEPTS OF ACCOUNTING AND QUALITIES OF ACCOUNTING INFORMATION A) Accounting is the process of identifying, recording, classifying, summarizing and evaluating information’s that can be measured in monetary terms for accurate communication of these economic events through proper presentation and interpretation for users of the information to make a favorable decision. However for accounting to achieve its objective, than the carried information should have certain qualities and six of them are explained with example below; 1. Accounting information must be relevant. The information must be essential to users to predict future possible outcomes. Relevant information should inform the users the financial performance of the entity to make accurate decisions. However, if the information limits users to know the financial performance of the entity to for tile future happening than the information has failed it relevant. For example if net income and its associates confirm investors predictive about future cash generation ability then the net income has feedback value for investors making it a relevant information. 2. Accounting information must be reliable. A quality business decision making is positively related to reliability of accounting information. The information can be reliable if it is verifiable and is natural. Verifiable means the information should prove be-young doubt by showing clearly income and expenses posted to the accounting general ledges for...
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...anaCHAPTER 1 DECISION MAKING AND THE ROLE OF ACCOUNTING TEXT REFERENCE: Hoggett, J.R., Edwards, L., & Medlin, J., Accounting in Australia, Fifth Edition, Chapter 1. OBJECTIVES: When you have studied this chapter, you should be able to: 1. understand the nature of decisions and the decision-making process. 2. appreciate the wide range of economic decisions made in the marketplace. 3. explain the nature of accounting and its main functions. 4. identify the potential users of accounting information. 5. use information to make simple economic decisions. 6. understand the role of accounting information in the decision-making process. 7. understand the differences between accounting for management and accounting for external users. 8. understand how the accounting profession is organised in Australia. 9. identify the different areas of the economy in which accountants work. 10. understand the importance of ethics in business and accounting and how to recognise and handle ethical dilemmas as part of the decision-making process. 1 Chapter 1 STUDY TIPS FOR CHAPTER 1 1. This is an important chapter because it lays the foundation for all topics that will follow. 2. Make sure that you understand each new term as it is introduced. 3. Pay particular attention to the significance of accounting information for decisionmaking processes. 4. Identify the types of activities that are carried...
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...Introduction to Financial Accounting Accounting works as an indicator of success (making or losing money) for a business, or a tool that is used to make decisions regarding how a company should grow. “ACCOUNTING IS THE LANGAUGE OF BUSINESS”. Definition: Accounting Information system that identifies and records the economic events of an organization and communicates to interested users. Accounting information are reported and presented in financial statements! Users of Accounting information can be divided into 2 categories: 1. Internal Users * Internal users are involved with planning, organizing and running companies. * Internal members of an organization * Example: Employees of the finance, marketing, human resources or operations departments. * Internal users are interested in knowing whether their organization has enough cash to pay upcoming bills or how much money can be allocated to the advertising activities. 2. External Users * Stakeholders outside the firm include investors, lenders, and other creditors (suppliers) * Investors will use a company’s accounting information to buy, sell, or hold onto their ownership. * Lenders, such as banks, will use accounting information to assess the risks of lending businesses money to finance operations or expansion. * Provincial Government, Labour Unions and Journalists are among other external users of accounting information. Table below is a classification of...
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