MOD003337 Accounting Information Systems Level 6

Understanding Research And Theory

In the article, researcher enunciated that accounting information systems are tools which are incorporated in the field of Information and Technology system, assists the management through controlling the topics of firms which are specifically related with economic and financial areas. They further elaborated that enhancement in the technological system encourages the management of small and medium scale organisation in Spain to implement them within the organisation in order to reduce cost, time and manual efforts (Urquía Grande, Pérez Estébanez and Muñoz Colomina, 2011). Researchers contend that Spain appears as a country with high resistance to changes that deliver uncertainty such as company's investment in IT (Hofstede, 2003). According to Ismail and King, (2005) there is positive relation in between accounting information system and small and medium scale businesses strategy and performance measure. With the increase in investment in accounting information system in Spain, majority of organisations have installed advanced accounting information system within their premises (Fortinelle, 2018).

Albeit, many authors contend that after implementing the AIS within the organisations, the performance has been significantly decreased as management wouldn't able to comprehend the benefits of IT systems. The process of gathering, analysing and storing of the accounting and financial data which will be used by decision maker of the organisation is known as accounting information system. In context of this statement, researcher carries out the research study on the implementation of accounting information systems in small and medium sized organisations incorporating in Spain (Urquía Grande, Pérez Estébanez and Muñoz Colomina, 2011). In the research, researcher analysed the studies that shows that there is a positive relationship in between investment in IT and economic and financial profitability and value added. It was further identified in the research study that organisations that have adopted accounting information system in their daily operations, they observe a significant increase in their productivity as compared to those who do not implement the system within their organisation.

Accounting information system helps in improving both; the performance and productivity of small and medium scale organisations. Researchers stated that according to the OECD report, countries who have invested more in advance technologies are considered as leaders of productivity growth (Observer, 2015). Despite of the fact, according to SME report published by the Industry Minister on supply and use of IT in Spanish SME, conform low performance. Productivity measured was also low in comparison with rest of the main economies. In order to analyse the statement, researcher made empirical study by surveying employees working in more than six hundred and thirty two firms.

According to Wijaya and et.al., (2015) accounting information system refers to the technology that helps today's organisation in simplifying the process of calculations and determining the fiscal position of the organisation. The information system allows the management of the small, medium and large corporations to manage their financial positions efficiently. In this context, the authors analyse the small and medium scale organisations which were incorporated in Spain in order to retrieve the use and benefits of accounting information systems. Pérez and et.al., (2010) contends that many organisations incorporated in Spain have invested in information and technological systems but they do not succeed in accomplishing set organisational performance goals. Albeit, it was identified that large sized firms have invested more in the IT systems and they were able to accomplish their established performance goals effectually. It is important to know the impact of these technologies on small firms as these technologies aid in providing them competitive advantages.

Critique Of Article

In the research article on “The impact of Accounting Information Systems (AIS) on performance measures: empirical evidence in Spanish SMEs”, researchers aimed to measure the relationship between the use of accounting information system and improvements in performance and productivity of the small and medium sized enterprises incorporated in Spain. Researcher selects the research topic as there were limited researches done in this field and very few personnel know about the impact of accounting information system on small and medium sized corporations, currently operating in Spain. In the era of digitalisation, new and advanced technologies are evolving rapidly which help in reducing the cost, time and efforts of businesses man and organisation. From data entry to record keeping and inventory management to financial management, technologies come in handy and provides humongous support to the organisations in order to enhance their productivity and profitability. In this context, researchers analysed six hundred and thirty two small and medium scale enterprises in Spain. They set some parameters while selecting the firms. They analysed Joint Stock Company and private limited company with minimum of 10 and maximum of 250 employees the organisations must be established after 1/1/2000.

According to Diatmika, Irianto and Baridwan, (2016) the research done by the researchers in order to gather information about accounting information system and its impact on business productivity and profitability gives realistic results about the implications of AIS in the small and medium sized corporations of Spain. Accounting information technologies used for bank and fiscal management show positive relationships. As per Prasad and Green, (2015) the motive of development of accounting information system and technologies was to assist the organisations and management in managing their financial and budgetary positions. The software utilises algorithm and coding in order to figure out the problem and generate the precise and expected outcomes which help the management to predict and determine their financial position.

In the same context, researchers in research study establish research question that whether Spanish small and medium sized enterprises which use accounting information systems have better economic and financial performance indicators or not. They identified that those organisations which used AIS for managing their banking and fiscal positions not only show positive relationships, but also, their performance indicators got enhanced and improved. This implied that accounting information system helps companies and management in simplifying their financial management process (Romney and Steinbart, 2014). Accounting information system helps in providing precise outcomes from the raw data input in the system. Through this technology, the organisation can manage and anticipate the present and future position of the organisation. From book keeping to managing accounts, this software helps in improving the performance and productivity of the organisation. The article will help the future researchers and accountants by providing them detail analysis of the benefits and limitations of accounting information systems. Furthermore, the end users will be able to comprehend the relationship between accounting information system with the productivity and profitability of business enterprise.

According to Fitriati and Mulyani, (2015) accounting information system utilised by the organisations helps in reducing their efforts, time and cost of the management and managers. From analysis of data, researchers obtained the expected results. It was identified in the study that firms which used AIS, their productivity and performance have been improved. The research study focuses on the challenges faced by the small and medium organisations while implementing accounting information system in their organisation. Abduljalil and Zainuddin, (2015) argued that in order to obtain positive results, it is rudimentary for the management to train their staff to utilise it efficiently. Inadequate training to staff only complicates the technologies and creates frustration as well as conflicts in between staff and management. The study shows realistic situations of organisations who used accounting information system in order to enhance their business productivity and profitability. Due to lack of study in the relevant subject matter, the empirical study is very useful and important.

Rapina and Susanto, (2017) elaborated that with an increase in technologies and information systems, small, medium and large scale organisations implemented the latest technology in order to improve their existing performance and take it to another level. These technologies benefit them in many ways such as improving the quality of work, providing them competitive advantages, enhancing profitability, etc. Accounting information system is a part of evolved technology that helps the organisation in order to manage their banking, financial and fiscal activities. The researchers in their study describe the definition of the system it uses for small and medium scale organisations. The focus of their study was on identifying the relationship in between the use of the Accounting Information Systems (AIS) by the Small and Medium Sized Enterprises (SMEs) in Spain and firms' improved performance indicators and productivity. From the analysis of the data, it was identified that firms that utilised the accounting information system within their organisation are able to observe improved performance and productivity. The research study helps in exemplifying the concept of accounting information system. In the article, researcher enunciated that accounting information systems are tools which are incorporated in the field of Information and Technology system, assists the management through controlling the topics of firms which are specifically related with economic and financial areas.

From the process of initiation to completion, researchers face one or many limitations which create obstructions in the research study. Research limitations are the barriers due to which researchers were not able to complete the research in the way they expected. In the present study, researcher faced some limitations due to which they were not able to accomplish the aim and objectives the way they wanted. Researchers contend that due to lack of literature in the subject matter, it became difficult to compare and contrast the author's view. Wijaya and et.al., (2015) said that literature review is the backbone of the research study. It is the chapter that helps in defining the topic in detail and in a comprehensible manner. Due to lack of relevant material for the topic, researchers faced difficulties in establishing critique of the topic. Another limitations according to the researcher elaborated was regarding the ration of response.

As there were large number of medium scale enterprises and few numbers of small scale enterprises, the research become sample bias. Thus, these were the limitations faced by the researchers in their empirical study. Describing research limitations is a good gesture and it provides end users about the obstructions that researchers have faced while conducting research analysis. Researchers also elucidated that for future research, the work can be carried out on regression analysis in between two variables which will be performance and productivity as well as utilisation of AIS using time variable. The research greatly helps the academicians in accounting by delivering them the pros and cons of accounting information system. The research opens up the possibility of further studies on this topic.

Summary And Conclusion

From the overall research study, it can be concluded that researchers made efficient analysis of the small and medium scale organisations incorporated in Spain in order to identify the implications of accounting information systems and its relationship with the performance and productivity. There is a positive relation in between accounting information system and small and medium scale business strategy as well as performance measure. With the increase in investment in accounting information system in Spain, majority of organisations have installed advanced accounting information system in their premises. In this report, the background of the study has discussed briefly in order explain the things covered by the researchers. The methods and measures used by the researchers in order to examine the data has been discussed in the analysis. Critique of the article has been made in the study in order to explain the importance of the article. Limitations faced by the researchers in their research study has been discussed. From the overall report it can be understood that there is positive relationship between use of AIS and performance and productivity of the organisations. It is mainly beneficial for bank and financial management of the organisations.

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References

• Abduljalil, K. and Zainuddin, Y., 2015. Intrinsic and extrinsic motivation as attitude factors towards adoption of accounting information system (AIS) in Libyan SMEs.International Journal of Academic Research in Accounting, Finance and Management Sciences,5(1), pp.161-170.
• Diatmika, I.W.B., Irianto, G. and Baridwan, Z., 2016. Determinants of Behavior Intention Of Accounting Information Systems Based Information Technology Acceptance.Imperial Journal of Interdisciplinary Research,2(8).
• Fitriati, A. and Mulyani, S., 2015. Factors that affect accounting information system success and its implication on accounting information quality.Asian Journal of Information Technology,14(5), pp.154-161.
• Hofstede, G., 2003.Culture's consequences: Comparing values, behaviors, institutions and organizations across nations. Sage publications.
• Ismail, N.A. and King, M., 2005. Firm performance and AIS alignment in Malaysian SMEs.International Journal of Accounting Information Systems,6(4), pp.241-259.
• Observer, O.E.C.D., 2015. Country roundup.OECD Observer, (303), p.5.
• Pérez Estébanez, R. Urquía Grande, E. and Muñoz Colomina, C.I. 2010. Information Technology implementation for continuous improvement: Empirical
• evidence in Spanish SME ́s, International Journal of Accounting and Information
• Management. 18(1). pp.39-57.
• Prasad, A. and Green, P., 2015. Organizational competencies and dynamic accounting information system capability: impact on AIS processes and firm performance.Journal of Information Systems,29(3), pp.123-149.

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