Contemporary Accounting Practices for Finance Information

Question: Discuss about theContemporary Accounting Practices for Finance Information. Answer: Application of Information System in Accounting An Accounting Information system refers to the programs and software which can be used for collecting, processing and analyzing accounting and finance information (Simkin, Norman Rose, 2014). Such types of information are used by auditors, accountants and other finance professional. The most popular accounting information system are ERP system, Expert systems, integrated accounting packages and other similar programs (Leyh, 2012). The use of accounting information system in the accounting process is crucial for systematic recording and processing of information on the basis of which important decisions are taken. Impact on the Accounting Process The introduction of new accounting information system in accounting process has result in tremendous development of overall accounting process. With the introduction of accounting information system like ERP and Expert system, the overall complexity has reduced and easiness of recording and analyzing different transaction and items have increased (Matende Ogao, 2013). Moreover, a lapse in accuracy which was present in the traditional accounting system have been made up and rectified with the introduction and implementation of accounting information system such as ERP, integrated accounting packages. Another advantage of the situation is that as the whole process is computerized, a single adjustment of any item will automatically adjust all the related area which is associated with the transaction. There are more advantages which are associated with the use of accounting information system which are related to the security and better presentation of the accounting data (Schaltegger Burritt, 2017). When a company is using accounting information system then the management will have to have accounting professionals which can operate the accounting information system and also have adequate knowledge of the accounting information system. The accounting professional needs to have adequate knowledge of the system or software or program which the business is using. Moreover, the accounting professionals need to have proper training of the accounting software and ensure that they are able to handle all situation effectively. Reference Leyh, C. (2012). Critical success factors for ERP system implementation projects: A literature review.Advances in Enterprise Information Systems II, 45-56. Matende, S., Ogao, P. (2013). Enterprise resource planning (ERP) system implementation: a case for user participation.Procedia Technology,9, 518-526. Schaltegger, S., Burritt, R. (2017).Contemporary environmental accounting: issues, concepts and practice. Routledge. Simkin, M. G., Norman, C. S., Rose, J. M. (2014).Core concepts of accounting information systems. John Wiley Sons.