Accounting Information System 5

American Journal of Scientific Research ISSN 1450-223X Issue 4 (2009), pp36-44  © EuroJournals Publishing, Inc. 2009 http://www. eurojournals. com/ajsr. htm Accounting Information Systems (AIS) and Knowledge Management: A Case Study Zulkarnain Muhamad Sori Department of Accounting and Finance, Faculty of Economics and Management Universiti Putra Malaysia Abstract This examination looks to inspect the utilization of Accounting Information Systems (AIS) by ZBMS Sdn. Bhd. , and it’s commitment to the information the executives and vital job of the association. ZBMS is an organization that enlisted in Kuala Lumpur and work in development industry.The organization utilized robotized AIS known as ‘Contract Plus †Financial and Project Accounting’ bundle monetarily created by a privately owned business (ZYXW). Wide assortment of individuals that include in the company’s activity inside and outside the association utilizes bookkeeping data created by this fra mework for decisionmaking. In light of info gave by operational level directors, the Contract Plus programming produces month to month projects’ salary proclamations, asset reports and articulation of changes in budgetary situation for the key and strategic supervisors to plan, control and settle on choice on the assets allocation.The pretended by AIS improved the organisations’ bookkeeping capacities, and include data esteem. The computerized AIS accelerate the procedure to create fiscal summaries and beat human shortcomings in information preparing. The framework improves the board of assets and the way toward observing, control and expectation of ZBMS business for better future. With the approach of AIS, the development of unsaid and unequivocal information could be seen from the concentrated preparing of work force at the beginning time of framework execution to the turn of events and utilization of company’s own manual in preparing of new staff and helping the activity of existing staff.Given the advantage of AIS to ZBMS, this paper suggested that the wellspring of information ought to be completely mechanized, and the current framework ought to be updated through modernize the pre-offering and post-offering of tasks to empower AIS incorporation. Watchwords: Accounting Information Systems, Knowledge Management, Accounting Functions, Information Value, Financial Statements 1. Presentation Accounting Information System (AIS) is crucial to all associations (Borthick and Clark, 1990; Curtis, 1995; Rahman et al. , 1988; Wilkinson, 1993; Wilkinson et al. 2000) and maybe, every associations either benefit or non benefit situated need to keep up the AISs (Wilkinson, 2000: 3-4). To all the more likely comprehend the term ‘Accounting Information System’, the three words establish AIS would be intricate independently. Right off the bat, writing archived that bookkeeping could be distinguished into three segments, in particular data framework, â€Å"language of business† and wellspring of money related data (Wilkinson, 1993: 6-7). Also, data is an important information handling that gives a premise to deciding, making a move and satisfying lawful obligation.Finally, framework is an incorporated substance, Accounting Information Systems (AIS) and Knowledge Management: A Case Study 37 where the structure is centered around a lot of goals. The blend of the three words Accounting Information System demonstrate a coordinated structure inside an element, (for example, a business firm) that utilizes physical assets (I. e. , materials, supplies, staff, gear, assets) to change monetary information into money related data for; (1) leading the firm’s tasks and exercises, and (2) giving data concerning the substance to an assortment of intrigued users.Indeed, the mix or association between human, innovation and procedures would allow an association to oversee its information successfully (Bhatt, 2001; Thomas and Kleiner, 1995). At present, the world and human life has been changed from data age to an information age (Syed-Ikhsan and Rowland, 2004: 238; Thomas and Kleiner, 1995: 22), and information has been perceived as the most important resource. Truth be told, information isn't generic like cash and doesn't dwell in a book, an information bank or a product program (Drucker, 1993).Drucker accepted that information is constantly epitomized in an individual, instructed and learned by an individual, utilized or abused by an individual. As the world moving into information period, this paper will analyze how ZBMS Sdn. Bhd. deals with its information so as to stay serious among the development business. Probst, Raub and Romhardt (1999, p. 1) focused on that organizations must figure out how to deal with their scholarly resources (I. e. information) so as to endure and contend in the ‘knowledge society’. Without a doubt, information the executives is worried about the misuse an d improvement of the information resources (Davenport et al. , 1998).This paper looks to inspect the Accounting Information Systems (AIS) utilized by a Malaysian organization named ZBMS Sdn. Bhd. The paper will feature the clients of the framework and the manner in which data increases the value of the association. Likewise, the paper will explore the manner in which information is overseen through the way toward making, putting away, dispersing and applying and how data framework assumes a significant job all through the procedure and the AIS commitment in the organisation’s vital job. The rest of the paper is sorted out as follows. The accompanying area depicts the foundation of ZBMS and the utilization of bookkeeping data systems.The third segment gives look into discoveries on bookkeeping data frameworks utilized by ZBMS. The fourth segment offer proposals for future research. The last segment closes the paper and frameworks the confinements of the examination. 2. The Use of Accounting Information Systems in ZBMS is a private constrained organization enrolled in Kuala Lumpur, Malaysia that work in development industry, where the principle exercises extending from development of foundation, building, power, squander water to property improvement just as designing, obtainment, development and charging (EPCC) in the oil and gas sector.The organization utilized computerized AIS known as ‘Contract Plus †Financial and Project Accounting’ bundle in their Finance Department, which was economically evolved by a privately owned business (ZYXW). Agreement Plus is a completely incorporated business arrangement planned explicitly for organizations in the designing and development industry. The product will create money related information to be examined by the bookkeepers and consequently utilized by top degree of the board for vital dynamic, subsequently, these chiefs could recognize future chances and restrictions face by the organization and industry (McCarthy, Minichiello and Curran, 1987: 243-244). . Discoveries As referenced before in area 2, ZBMS is an organization that work in development industry. The business was recognized as one of the most hard to comprehend because of its intricacy blend of individuals, plant, materials, areas, innovation, information on the law just as the structure and valuation of work done, which are a lot of subjectivity (Capon, 1990: 1). In any case, these difficulties are leveled out with the coming of innovation, for example, programming improvement that permits efficient information 38 Zulkarnain Muhamad Sori processing.Therefore, it is essential to comprehend the data stream in ZBMS so as to value the utilization of data inside the association as appeared in Figure 1-1 underneath. 3. 1. Clients of AIS As appeared in Figure 1-1, the money work force that live at site venture office (or called Project Accountants) and administrative center, for example, the Financial Accountants, Man agement Accountants and Finance Manager are the inside clients of the framework. Additionally, the supervisory crew that comprises of Finance General Manager, Chief Operating Officer, Managing Director and Board of Directors are among the interior clients of the system.On the other hand, the outside clients comprise of government office (I. e. Inland Revenue), outside reviewers and loan bosses. Without a doubt, wide assortment of individuals inside and outside the association utilizes bookkeeping data for dynamic (Rahman and Halladay, 1988, Renau and Grabski, 1987). Figure 1. 1: Information Flow of ZBMS HEAD OFFICE Management Team Inland Revenue ZBMS HEAD OFFICE External Auditors Finance Department Bankers Suppliers Site Office Design Team SubContractors Client 3. 2.Function of AIS The primary capacity of AIS is to allot quantitative estimation of the past, present and future financial aspects occasions. At ZBMS, AIS through its automated bookkeeping framework (I. e. ZYXW-Contract P lus) produces the budget reports to be specific pay proclamations, asset reports and income explanation. The framework will process the information and change them into bookkeeping data during information, preparing and yield arranges that will be utilized by a wide assortment of clients, for example, inside and outer clients (see for instance Wilkinson, 2000: 10-11).Wilkinson noticed that a powerful AIS plays out a few key capacities all through these three phases, for example, information assortment, information upkeep, information Accounting Information Systems (AIS) and Knowledge Management: A Case Study 39 administration; information control (counting security) and data age. Figure 1-2 summed up the change procedure of AIS. Figure 1. 2: Data Processing in Finance Department at ZBMS Input †Progress Billing Certificate, Subcontractors Progress Certificate, Suppliers’ Invoices Processor †ZYXW Accounting System Output †Financial StatementHuman Element †Fi nance Personnel 3. 3. Use of Information Within AIS The development ventures embraced by the organization are partitioned by the sort of development exercises that included five divisions, to be specific framework, building, force, wastewater and oil and gas, where each task is treated as a different organization. The quantity of