An accounting information system, sometimes referred to as aQS, is part of the information system of an organization that concentrates almost entirely on processing financial data. Financial data is processed into information and reports can be produced by the accounting system for various clients and partners. Some examples of financial data processing includes: recording purchase orders, employee records, bank reconciliation and integration with other data sources. In the UK, there are different accounting software suppliers, who offer a range of software solutions including the Microsoft Dynamics GP or Great Plains Software or Sybase Oracle ERP, both designed for businesses in the UK.
Meet the Specific Needs of Businesses
These software solutions are designed to meet the specific needs of businesses in the UK as well as those located around the world, including: financial services, banking, insurance, retail and communications. An accounting information system provides these companies with important services that help improve their performance as well as provide greater benefits in cost control and data reliability assessment. These solutions also improve the data quality, thereby increasing productivity, reducing costs and increasing efficiency at all levels of the business.
Approve Accounting Information Systems Used in the UK
A large number of professional bodies accredit and approve accounting information systems used in the UK. The Accounting Standards Board (ASB) and the Institute of Chartered Accountants of England (ICAE) are among the major professional bodies that accredit accounting systems. These two bodies have published set standards and policies regarding accounting software used in the UK. As well as accrediting bodies, there are some independent professional bodies that certify accounting information systems. These organizations include the Association of Independent Tax Accountants in the UK and the Institute of Chartered Accountants of Scotland. Professionals in this field have the added advantage of being familiar with the accounting processes used in the UK.
Concepts of Modern Accounting
Double-entry accounting is one of the main concepts of modern accounting. Double-entry accounting involves recording financial transactions in two ways: as cash and credit flows, and as asset and liability accounts. In this system, two numbers, representing quantities of financial transactions, are entered: the first number represents the inventory element of the inventory, and the second number represents the current liability account. The difference between the two numbers, representing the value of the assets or liabilities, is the profit or loss. Therefore, a balance is entered between the two numbers: this is the double-entry accounting results. This method of recording has become widely accepted by most accounting firms, because of its ability to capture accurate and consistent results.
Professional Accounting Information
Professional accounting information systems come with detailed instructions on how to create, modify and use them. In addition to providing standard features and functions, many software packages offer additional modules and tools that make using them even easier and more convenient. This allows even small accounting firms to maintain a full-featured information system. Some of these additional modules and tools include surveys, worksheets, calculators, language translators and a variety of different accounting reports that can be custom designed and built into the information systems.
Financial Reporting
Financial reporting is the heart of any business or accounting activities, and proper accounting practices play an important role in ensuring that companies meet their financial obligations. There are a variety of accounting systems available, ranging from very complex proprietary databases to extremely user friendly user interfaces for simple everyday financial reporting needs. Depending on the type of financial reporting needed, a wide variety of software is available. These software systems can provide support for sales, purchases, accounting, financing, reporting, payroll, advertising and research programs.
Conclusion
When considering the type of accounting information systems required by a company or firm, there are many factors to consider. The most important factor is how comprehensive and feature-rich the accounting software program is, as well as whether the program is the right size for the task. Another important consideration is scalability, since an accounting program with too many features may prove to be unmanageable, or even difficult to use and understand. Also important is whether the program will meet the specific needs of the accounting profession and the particular industry in which it operates.