Accounting Cycle Paper Week

Accounting Cycle Paper Week

Accounting Cycle Accounting information systems generally consist of six main parts: people, procedures and instructions, data, software, information technology infrastructure and internal controls. People The people in an ASS are simply the system users. Professionals who may need to use an organization’s ASS include accountants, consultants, business analysts, managers, chief financial officers and auditors. Procedure and Instructions The procedure and instructions of an ASS are the methods it uses for collecting, storing, retrieving and processing data.

These methods will be both annual and automated, and the data can come from both internal sources such as employees, and external sources like customers online orders. Procedures and instructions must be followed consistently to be effective. Data The data contained in an ASS is all the financial information pertinent to the organization’s business practices. Any business data that impacts the company’s finances should go into an ASS. This data can then be used to prepare accounting statements and reports such as accounts receivable aging, depreciation/amortization schedules, trial balances, profit and loss, and o on.

Having all this data in one place – in the ASS – facilitates a business’s reconsidering, reporting, analysis, auditing and decision-making activities. For the data to be useful, it must be complete, correct and relevant. Software The software component of an ASS is the computer programs used to store, retrieve, process and analyze the company’s financial data. Before there were computers, Axis were manual, paper-based systems, but today, most companies are using computer software as the basis of the ASS. Information Technology Infrastructure

Information technology infrastructure is just a fancy name for the hardware used to operate the accounting information system. Information Technology Infrastructure Information technology infrastructure is the hardware used to operate the accounting information system. Most of these hardware items are things a business would need to have array – they include personal computers, servers, printers, surge protectors, routers, storage media, and possibly a backup power supply. Internal Controls The internal controls of an ASS are the security measures it contains to protect insensitive data.

These can be as simple as passwords or as complex as biometric identification. An ASS must have internal controls to protect against unauthorized computer access and to limit access to authorized users which includes some users inside the company. Conclusion The purpose of accounting centers on the collection and subsequent reporting of financial information while the six components of the ASS work together to help employees collect, store, manage, process, retrieve, and report financial data.

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