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 investigation looks to analyze 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 enrolled in Kuala Lumpur and work in development industry.The organization utilized computerized AIS known as ‘Contract Plus †Financial and Project Accounting’ bundle industrially 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 produced by this framework for decisionmaking. In view of information gave by operational level administrators, the Contract Plus programming produces month to month projects’ salary explanations, asset reports and articulation of changes in budgetary situation for the vital 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 mechanized AIS accelerate the procedure to create budget summaries and defeat human shortcomings in information preparing. The framework upgrades the executives of assets and the way toward checking, control and expectation of ZBMS business for better future. With the appearance of AIS, the development of implicit and unequivocal information could be seen from the escalated 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 overhauled through modernize the pre-offering and post-offering of undertakings to empower AIS coordination. Watchwords: Accounting Information Systems, Knowledge Management, Accounting Functions, Information Value, Financial Statements 1. Presentation Accounting Information System (AIS) is imperative 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 arranged need to keep up the AISs (Wilkinson, 2000: 3-4). To more readily comprehend the term ‘Accounting Information System’, the three words comprise AIS would be detailed independently. Right off the bat, writing recorded that bookkeeping could be distinguished into three p arts, to be specific data framework, â€Å"language of business† and wellspring of money related data (Wilkinson, 1993: 6-7). Also, data is a significant information handling that gives a premise to deciding, making a move and satisfying lawful obligation.Finally, framework is a coordinated 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 an incorporated 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 communication between human, innovation and methods would allow an association to regulate its information success fully (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 significant resource. Truth be told, information isn't indifferent like cash and doesn't dwell in a book, an information bank or a product program (Drucker, 1993).Drucker accepted that information is constantly exemplified in an individual, educated and learned by an individual, utilized or abused by an individual. As the world moving into information time, this paper will inspect 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’. In fact, information the executives is worri ed about the misuse and advancement of the information resources (Davenport et al. , 1998).This paper looks to analyze 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. Additionally, the paper will examine the manner in which information is overseen through the way toward making, putting away, scattering 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 segment portrays the foundation of ZBMS and the utilization of bookkeeping data systems.The third segment gives inquire about discoveries on bookkeeping data frameworks utilized by ZBMS. The fourth area offer recommendations for future research. The last segment finishes up the paper and frameworks the c onstraints of the examination. 2. The Use of Accounting Information Systems in ZBMS is a private restricted organization enrolled in Kuala Lumpur, Malaysia that work in development industry, where the primary exercises going from development of framework, building, power, squander water to property improvement just as designing, acquisition, development and authorizing (EPCC) in the oil and gas sector.The organization utilized robotized AIS known as ‘Contract Plus †Financial and Project Accounting’ bundle in their Finance Department, which was monetarily evolved by a privately owned business (ZYXW). Agreement Plus is a completely coordinated business arrangement structured explicitly for organizations in the designing and development industry. The product will create money related information to be examined by the bookkeepers and therefore utilized by top degree of the board for vital dynamic, along these lines, these administrators could distinguish future chances and confinements face by the organization and industry (McCarthy, Minichiello and Curran, 1987: 243-244). . Discoveries As referenced before in segment 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 multifaceted nature 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 appearance of innovation, for example, programming advancement that permits methodical 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 beneath. 3. 1. Clients of AIS As appeared in Figure 1-1, the fund work force that dwell at site venture office (or called Project Accountants) and admin istrative center, for example, the Financial Accountants, Management Accountants and Finance Manager are the inside clients of the framework. Additionally, the supervisory group that comprises of Finance General Manager, Chief Operating Officer, Managing Director and Board of Directors are among the inner clients of the system.On the other hand, the outside clients comprise of government organization (I. e. Inland Revenue), outside inspectors and banks. To be sure, 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 fundamental capacity of AIS is to allot quantitative estimation of the past, present and future financial matters occasions. At ZBMS, AIS through its electronic bookkeeping framework (I. e. ZYXW-Contract Plus) produces the fiscal summaries in particular salary explanations, monetary records and income articulation. The framework will process the information and change them into bookkeeping data during info, preparing and yield organizes that will be utilized by a wide assortment of clients, for example, interior and outside 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 support, 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 Accoun ting System Output †Financial StatementHuman Element †Finance Personnel 3. 3. Use of Information Within AIS The development ventures embraced by the organization are partitioned by the sort of development exercises that involved five divisions, in particular framework, building, force, wastewater and oil and gas, where each task is treated as a different organization. The quantity of