Accounts and Finance

Accounts should have a control over various recording points in the entire process from
procurement to finished goods store room. This would help both in recording transactions for
financial statements and approving and arranging for cash payments.
Accounting information system (AIS) is linked to all the information systems in an
organization. This is important because the data required for proper book keeping and
generation of transactional reports is extracted from all over the organization. For instance,
sales information can be sought only from marketing information system and stock
information is available in manufacturing information system.
Here we would consider an example to see how AIS records internal data describing
manufacturing operations this requires use of data collection terminals at the manufacturing
facility. It also records external data describing firms transactions with its suppliers.
The figure shows twelve data collection terminals located at the factory area. Raw materials
are received from suppliers, and receipt data is entered into the terminal. Quality control
inspection is conducted and results are recorded at terminal two. Acceptance into and release
from the raw materials room is logged in to the terminal three. Terminals four to ten are used
by production employees to record start and completion of each step of production. Terminal
eleven records the entry into the finished goods store room. Shipping to customers is
recorded at terminal 12.

Accounting & Financial Information Systems

Accounting and financial information systems cater for the needs of Accounts & Finance
Department. These are responsible for managing financial assets in order to maximize return,
like
o Cash or Stocks or Bonds or Other investments
o Financial liabilities
o Capitalization of the firm through acquisition of new financial assets

It also produces the periodic and annual financial statements.

Importance of Accounting & financial Information Systems
Every transaction that an organization undertakes has a financial impact, to be recorded and
reported by the accounts & finance department. Hence there is a share of interest for every
department in reports and information produced by this system. Financial Information
Systems like other information systems should cater for information requirements at each
level, for instance.
1) Strategic level
2) Investment goals
3) long range forecasts for firm's financial performance
4) Acquisition of financial resources and goals
5) Knowledge Level
6) Analytical tools to design the right mix for investment
7) Portfolio updates
8) Market information analysis
9) Management level
10) Control over firm's financial resources
11) Investment management
12) Budget management
13) Tax management
14) Profitability & Performance Evaluation
15) Operational Level

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16) Cash flow statements through various transactions
17) Inventory and debtors management
18) Creditors Management

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