Accounting Information Systems

A reliable accounting information system (AIS) is one of the most important parts of maintaining a company’s financial health. To make sure things continue to run smoothly, businesses may turn to an information system specialist.

AIS is a career focus that’s increasingly in demand. Read on to learn more about what AIS specialists do, and why they’re an important part of the accounting industry.

What are Accounting Information Systems?

An accounting information system is the method through which a business keeps track of its financial information. It’s how companies collect, store, and process the data they use to create reports, file taxes, and ensure that they remain in compliance with the federal government.

Each information system typically contains six distinct elements: procedure and instructions, data, people, software, IT infrastructure, and internal controls. When you pursue a career in AIS, you’ll play a key role in the information system.

As much as businesses need a solid AIS, they also need someone who knows how to use it. Companies are likely to turn to a specialist when they first need to implement their AIS, and to take care of any issues that may arise while using it.

What Does an AIS Specialist Do?

An AIS specialist is unique in their ability to bridge the gap between accounting and IT. They’re familiar with the information needed by accountants to do their job correctly, and they know how to format software to handle their needs.

The specific job duties of an AIS specialist often vary based on the size of the company they work for and the position that they hold. In large corporations, an AIS specialist may act as a liaison between the accounting and IT departments. At a smaller business without an entire department dedicated to accounting, they are more likely to handle all of the functions of a staff accountant or bookkeeper.

Here are a few of the ways an AIS specialist might use their expertise within the accounting field.

1. Systems Analyst

Gone are the days when accountants had to comb through financial reports with a fine-toothed comb.

Automation is quickly establishing itself as the future of business and accounting. With an effective accounting information system in place, companies can bypass the need to hire an entire team of accountants to handle their sensitive financial data.

The ability to automate tasks such as creating receipts, tracking inventories, and running analyses has effectively taken them out of the hands of accountants, in many cases. Working with programmers, AIS analysts can help to guide the creation of software that gets the job done for their clients while adhering to the generally accepted accounting principles (GAAP).

A systems analyst can also look at an existing AIS and assess whether it’s as effective as it could be. By tightening up any data leaks along the way, the AIS will be more secure and more accurate in its reporting.

2. Accountant

Computers are playing an increasingly large role in how businesses approach accounting. An accountant with deep understanding of and familiarity with information systems will have a leg up over less tech-savvy colleagues within the finance industry.

Accountants with a background in AIS may have an increased ability to effectively make the system work for their purposes. They’ll need to know how to use and access the data stored, and how to process a number of different functions, like creating reports, analyzing budgets, and preparing tax information.

Accountants may confer with programmers and systems analysts to communicate the specific needs their business or firm have for managing their data. They know what to look for to make sure that their company’s AIS is running efficiently, and may be more able to detect potential issues before they become larger problems.

3. Consultant

Instead of using their skills for a single company, AIS specialists can often find lucrative employment in the consulting field.

The details of a consulting job will change depending on the needs of each client. Often, an outside source with a fresh set of eyes can find issues in a system that internal accounting staff may not. A consultant can provide a new perspective in the realistic strengths and weaknesses of a company’s AIS.

AIS consultants can also be of great help when it’s time to set up a new information system. They’ll be able to assess and account for contingencies when designing a plan that works for their client. AIS consultants will know what to look for in creating a system that meets requirements and stays within federal compliance.

4. Upper Management

Accounting information systems are essential when it comes to generating the data executives will need to make the best fiscal decisions for their business. A chief financial officer (CFO) who knows how to maximize the effectiveness of AIS output will have the financial information they need at their fingertips.

In today’s competitive job market, AIS certification is just one more useful credential that an aspiring CFO can have under their belt. It will tell management that a candidate has an eye toward the future and a mind for technological progress in the field.

Education Required

Most AIS specialist positions require a minimum of a bachelor’s degree. Many students on the AIS career path choose to get a major in accounting with a minor in computer science or information systems. Others go for a major in computer or IT with a minor in accounting or business. The best path for each student depends on the career they hope to pursue upon graduating.

Depending on the school, students may be able to get a focused education in AIS with a special certificate program. To qualify, students generally have to complete a number of courses in accounting and auditing along with a business major. Classes in management accounting can also be useful, as specializing in information systems will require a great deal of real world knowledge application.

Undergraduate students can prepare for a career in AIS by taking a course load that’s heavy on information systems classes. These may include standard IT courses like systems design, database development, and analysis courses. They may also include more AIS specific classes that will give students an understanding of how accounting information systems directly impact the effectiveness and outcomes of a business’s overall financial plan.

Certification

AIS specialists looking for certification in their field have several different options to choose from.

CPAs can add an additional certification to their training with the Certified Information Technology Professional (CITP) Credential. To earn this designation, accountants must show an understanding of information management, risk assessment and management, fraud prevention, and internal controls. Candidates must also pass an exam, which costs $300 in fees and takes about four hours to complete.

Accountants can also choose to pursue the Certified Internal Auditor (CIA) certification. This can indicate competence in AIS, as learning about information systems is a large part of the required coursework.

To qualify for the CIA, candidates must have a minimum of a bachelor’s degree in a related field, as well as 24 months of relevant experience. They must also pass the CIA exam, a four-part test that covers subjects involving auditing, business management, analysis, and information technology.

The CIA requires continued professional education (CPE) credits to maintain certification. CIA certified accountants must complete 80 hours of CPE credit every two years.

Those seeking a more technically geared certification might choose to get a Certified Information Systems Auditor (CISA) credential. This requires candidates to have five years of professional experience prior to certification, as well as completion of a 200-question exam covering topics about auditing, IT, and information systems.

A CISA certification also requires CPE credits to remain up to date in the industry. To keep their certification valid, CISAs must complete 120 hours of education over three years, with a minimum of 20 hours per year.

Salary and Career Outlook

The outlook is sunny for those going into the job force with a concentration in accounting information systems.

People using their AIS skills as an analyst or consultant can expect to enjoy steady job growth over the next several years, with a projected 14 percent jump by 2026. This is expected to rise as companies continue to prioritize efficiency and risk management in their business strategies. This is especially true in the healthcare industry, which is finding itself dealing with the high costs of an aging population.

As of 2017, analysts and consultants earned a median salary of $82,450 per year. Despite the abundance of jobs, the high pay of this career makes it a particularly competitive one. Serious candidates may choose to pursue a professional certification or learn a niche skill to set themselves apart.

AIS specialists who opt to go down the accounting or auditing route can also expect to enjoy a positive career outlook. Accounting and auditing careers are projected to increase by ten percent by 2026. A strengthening global economy, combined with complicated and frequently changing tax regulations, are major catalysts for job growth in this industry.

Accountants with a focus in AIS will be increasingly sought after as technology progresses and everyday accounting becomes more automated. A certification in information systems can keep accountants and auditors up to date with current goings-on, ensuring that they’re consistently in demand in a competitive job field.

As of 2017, the median pay for accountants and auditors was $69,350. The top ten percent of earners brought in more than $122,220, while the lowest ten percent earned about $43,000.

Importance of Accounting Information System

An accounting information system is the heart of every service, no matter what type it may be. In order to keep track of every detail and also eliminate a lot of the middle-man handling, all businesses should have one. It ought to be a conventional part of every business's accounting procedures, in addition to an essential element in doing daily financial tasks. Because of this, you will certainly intend to understand exactly how each system works so that you can see to it that it is working effectively.

There are three major types of accounting information systems readily available, which include computer system based, guidebook, and also internet based. Each system has its pros and cons, so you will intend to discover the one that is right for your firm. Below are several of the major parts of each system.

Computer-based accounting information systems, additionally known as CAs, are one of the most common as well as most basic of all the kinds. They use a central computer, which can be a laptop or home computer. The data entered is saved electronically in a main data source and after that moved to the audit employees by means of the computer system.

When an audit department is attempting to make a budget plan, for instance, they go into the data in the central database. The accounting division after that gets the information from the central database, makes a purchase or order, and then offers it to the central audit division where it is entered into the bookkeeping records.

These systems permit all the details to be entered in similarly for all the useful systems of the firm. That implies that the info is transformed as well as the records are kept in the same styles. This removes a lot of the job associated with maintaining all the info directly for the audit department.

Manual systems are generally the most labor extensive of all of the systems. The employee who runs the accountancy division needs to by hand get in the required data right into the audit system. There may be many adjustments made to the data at any provided time, and these modifications may call for input from the worker.

Considering that the employee does not know how to enter the information, she or he must find out just how to do so on their own. The worker would need to find out exactly how to enter the data right into the accountancy system by utilizing this guidebook method.

One of the most vital elements of any type of accounting information system is the capability to deal with client assistance. Any kind of modifications made to the data source need to be able to be executed by the client assistance employees to ensure that they can remain to do their work with no disturbance.

This is essential due to the fact that occasionally a company will have troubles with maintaining a system. As an example, a software program error might occur. Without the ability to support the audit division, the details would need to be removed and also reactivated.

Online systems use a much more centralization procedure than the standard hands-on system. Since there is less hand-operated input as well as result, an online system is much easier to preserve and operate.

This suggests that a business will certainly have the capacity to use trustworthy customer support 1 day a day, seven days a week. Customer assistance is among the most essential elements of any type of accounting information system.

An organized, correct accounting information system is really crucial for any type of firm to take advantage of their company. The even more info that can be maintained right, the more reliable the audit department can perform its duties.

Functions of Accounting Information Systems

The main functions of accounting information systems, over time, are to serve the needs of monitoring and boost the firm's productivity. Of course, they likewise sustain organisation procedures. Some of these functions are: bookkeeping documents management, discussion of financial outcomes, reporting, tape-recording accounts, handling, and evaluation of funds, financial tasks, acquisition, as well as sale of possessions, sales, and also marketing, funding, etc. These systems can support these functions by optimizing their features, while enhancing efficiency.

The most efficient accounting information systems utilize data as well as accounting information to supply both administration and also the employees with a much more efficient fashion of managing their jobs. Therefore, the two functions are linked with each other.

It is feasible for these systems to accommodate different sorts of accounting information systems depending upon the needs of the organization. The following are several of the significant types of accounting information systems.

There are two sorts of solutions which are utilized to manage purchases: handbook and automated. Manual is considered as an "unmanned" procedure, because it is not linked to any kind of main web server or administration system.

The primary distinction between hands-on and computerized systems is that the former utilizes a staff to do the job, while the last uses computers. This means that automated systems need less sources to be made use of and also are more reputable as well as efficient.

There are additionally 2 types of administrative functions: streamlined and dispersed. Centralized ones regulate the multiple processes of an organization, while distributed ones refine a few specific processes.

Each of these types of accounting information systems have various capabilities as well as sources. A business that decides to use a central system will need to establish and also maintain a specific variety of devoted servers; consequently, this kind of accounting information system is more expensive.

Due to the fact that the sorts of accounting information systems are classified into different functional locations, it is necessary to comprehend what each type uses to the users. As with any other aspect of business, the more valuable a specific system is, the more expensive it is to make use of.

If the individuals are seeking the most effective and accurate method of doing their work, the software application used in the accounting information systems is one of the most proper for them. A few of the most effective software firms on the planet provide the best accounting information systems offered in the marketplace today.

These companies supply their customers with software program growth firm training programs, as well as offer live and also virtual technological assistance. They are particularly well-informed in software application development and also assist their clients in creating the very best system for their organization.

Many software programmers who are experienced in this field deal services for details accounting information systems that are required by their clients. A few of the very best software application development business supply packages that consist of all the required accounting information systems in their growth packages.

The plan includes accounting details such as registers, economic documents, financial statements, reports, timetables, schedules, etc. It likewise has elements that assist the company in the administration of its financial records and also in evaluating the outcomes of their activities.