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Changing the Accounting Information System

Discusses changing accounting information systems.

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    1 Changing the A ccounting I nformation S ystem Changing the A ccounting I nformation S ystem Title: Course Name: Instructor Name: Professor’s Name: Student Name: Date: Critically analyze the factors contributing to the failure of Accounting Information Systems (AIS) and the role of senior management in mitigating these failures. Discuss the best practices for successful AIS implementation and how organizations can deploy financial management systems effectively. Your response should be well - structured, supported by relevant literature, and provide real - world examples where applicable. Word Count Requirement: 2500 – 3000 words.

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    2 Changing the A ccounting I nformation S ystem Introduction Data and Information are essential elements of all the activities and occupation of every human Endeavour. Accounting information system (AIS) can be viewed as a special field and as part of a superior system and presents a control that is oriented for practice ( R A & Neter J , 1981 ) . Accounting information system can be utilized in this way must be steady, perfect , and reliable in order to make successful and intelligent business assessment based on facts. On the other hand failure of Accounting I nformation S ystem can significantly damage the excellence, integrity and consistency of organization’s financial report and makes serious consequence for an organization’s safety . The important benefits of accounting information systems comprise computerization, accounting information organization, as well as well communication. The application manner of a ccounting information system mostly involves the practice of ensuring the valuable package of organization’s applications work together as a multiple application in line with the main aim and goals of the organization ( R A & Neter J , 1981 ). The procedure of executing a financial management information system is a difficult process that must be well planned prior to the real task. Organizations project team that is tasked with the acceptance of the financial management information system should be well experienced with well trained so as to make sure the success of system . Three factors contributed accounting information system failure One of the important factors mostly contributed to the accounting information system failure related and rationale with changing a recent system is how the organizations employee will respond to the particular change ( C Doom, K. Milis & E Bloemen , 2009 ) . In this situation e mployee will either analysis the specific changes being made as bad or good depending on the individuals being influence by the system change. Organization m anagement examines changes

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    3 Changing the A ccounting I nformation S ystem in a positive way if it reduces costs or increases profits. The same change viewed by e mployees as bad if their jobs are unfavorably affected or terminated. As bad those e mployees view the changes will act out displaying anger , averting or projection. All of these important forms of resistance can find in reduce company business performance, low damage or morale. Generally r esistance takes places because of lack of communication , negative understanding with prior changes , fear, not have management support, disrupting nature of change, person al unfairness, person al characteristics, manner in which the change is initiated , and background emotions. Secondly in the failure of accounting information system another such factor contributed is company’s employees are not well trained. Sometime c ompanies will get short - cut because of cost and time related with employee s training could be costly ( C Doom, K. Milis & E Bloemen , 2009) . However in the company t his can result not being able to reach its return on its funds and expected profit s. Also l ack of employee training can consequence in employees having request other employees who are skilled in using the specific system for help thereby growing company product costs and decreasing output of coworkers. P oor system planning contributed in the third accounting information system failure rationale . Some times company m anagement may have impracticable expectations and goals of the system may be very difficult to understand or what they require the system to do which can may result in the system failing ( C Doom, K. Milis & E Bloemen , 2009) . So as to diminish this risk management should set practical expectations and goals. Management must evaluate design substitute and have the steering committee to select or evaluate the best valuable decision that will convene the organization’s requirements . Fourth important factor contributed to the accounting information system failure i.e accurately not testing the system. For a company p oor system testing can be very expensive . Properly

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    4 Changing the A ccounting I nformation S ystem t esting should be done in order to reduce and find out problems as early on in the advancement procedure as possible. So reduce this particular threat most of the companies should use correct techniques in order to reduce and find out problems. Also c ompanies should check the system with sys tem testing techniques such as acceptance tests , walk - through, and data processing test. Fifth factor in information system failure rationale is buggy and malware software, and threat of the security breach. Improper or buggy software could run to useless errors, and the computer system it will not ensure the error - free working, and thus, it will be up to the probability . The primary investments could be so high, and in the new system in first or second year of its investment it may be feasible that the company may not complete reasonable cash flow, but it will meet the development, expansion and strategic business requirements. Senior Management Responsibility for the Failure The senior management team of the company had the responsibility of guarantee that the useful accounting information system that is implemented in the company worked properly and this system able to meet its objective and . A ccounting information system s successful mplementation is meant to be led by a company’s project manager so as to dedicate financial budget, time, a s well as development to the process ( C Doom, K. Milis & E Bloemen , 2009) . Before the particular changes are made to the system t he employee must be well trained. In this situation t he project team should take sufficient time so as to make sure that they select an alternative with technical assist and extensive training. Reduce the risk of behavioral difficulty company m anagers also help by electing a project manager who can help coworkers, rally, improve employee’s moral , and help with the systems development. The manager needs to involve anyone that is affected by the change in the development of the new system. By doing this entire process employee well trained, more

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