Essential of using AIS
By using accounting information systems, it will surely enhance the management, controlling the organization, and it makes a huge improvement in technology, which successfully will achieve the organizational goals of the company (Soudani, 2012). Each institution either concerning to have profit or not seeking for profit is in need to take part for AIS as it is like infrastructure for all firms. There are several transactions should occur before make a detailed report for decision makers in which they collect the raw data or ordinary data and convert them into financial data for the objective of the entity (Soudani, 2012). As the suitable design of AIS associate and support business plans in ways to make high organizational performance and make more flexibility to face continues change that may happens. In addition, this system have combination between methodologies, controls and accounting techniques with the technology of the IT industry to track transactions provide internal and external reporting data, financial statements, and trend analysis capabilities to effect on organizational performance (Soudani, 2012).
Benefits of using AIS within performance
There are main benefits of an optimal use of AIS in an organization that are, better adaptation to a changing environment, better management for transactions and high degree of competitiveness. Additionally, more flow of information between different staff levels and the possibility of new business on the network and improved external relationships for the firm, mainly with foreign customers accessed through the firm’s web (Soudani, 2012). New studies have conclude that AIS is proactive role in strategy management which means creating or controlling a situation by causing something to happen rather than responding to it after it has happened. It also supposed that the performance of organization is a main factor for financial performance, performance management, and AIS (Soudani, 2012). By time there are evidence that appear which observe a relationship between these AIS and financial performance by a study made by many persons which discovered a link between AIS design, organizational strategy and performance as to make everything in efficient and effective way related to time, cost, or money (Soudani, 2012). The managers in any financial firms want financial and accounting data provided by AIS to calculate the past performance and evaluate it , then estimate and making future plans to reduce any mistaken or errors that happens in the previous period of time. We should take into our consideration that organizational performance is measured in terms of return on assets and return on equity (Soudani, 2012).
AIS and performance management
One of the most critical systems in any firm is AIS as it change the ways pick up, process, storing and distributing information in which performance management affect many things such as behavior of company through all levels and departments so at the end it will accomplish the goals in the most effective and efficient way (Soudani, 2012). Each company have competitive advantages that deal with it in order to reach top in the financial market with successful improvements so the quality information is one of the competitive advantages for an organization. Quality information is essential for achievement of success of the system and important for management, which will help in decisions (Soudani, 2012). The management compares the present performance by the budget, forecast performance that could happen by benchmarks. The management measurement is used to know to which extent the goals is being achieved and identifies unexpected results or the unusual conditions that require top manager to be follow-up (Soudani, 2012). There are four replacement types of performance, which are user satisfaction, system use, decisional performance, and organizational performance (Choe, 1996).
AIS in Small and Medium Sized Enterprises
SMEs have small management, weak control, and there is financial realization among all managers, moreover, utilization of computers is not complete potentially, on the other hand, they submit when they have effective information and control by unofficial means and decision-making is advanced. Therefore, they should search in levels of accounting data (Ismail, 2005). There are some researches made recently says that computers in SMEs mostly used for administrative and operational duties more than for strategic planning. As information and communication, technologies include a wide range and contain all the areas in which a firm acts. The accounting information systems is to display that computerized accounting tools are directly related to the economic and financial results and productivity in small and medium-sized business organizations. AIS are systems that used to record the financial transactions of a business or organization. The utilization of AIS makes it probably to measure the risk of specific transaction or estimate the budget earnings with sophisticated statistical software applications (Grande.E, Estébanez . R , Colomina .C, 2011).