Impact of Computer Technology on Accounting Information System and Its Effect on Organizational Performance

Abstract

In recent times, the business environment is continually growing because of the quicker technological changes in producing systems improvement of information systems (IS), growing market competition, growing expectations from the customers and unprincipled manipulative actions conducted by businesses. During these circumstances, the composite and impulsive business dynamics has confronted the numerous role of Accounting Information system (AIS) in the input driver to the economic and business communication, considerably because of its connection with management effectiveness (Curtis, 1995).When we talk about AIS, it is a tool that uses firm s information management system (MIS) for directing the monetary and economic inflows or outflows in the organizations. However, amplified enhancements in IT have enabled the businesses to use such various strategic stance (Louadi, 1998).As we already studied that the accounting is the art of business in which we collect record, sum up it and shows the financial information of the firm. Accounting Information System (AIS) manage all the financial information and make available the final information in form of summaries that is necessary for the decision making. AIS play a vital role in the decision making and the managers used this advance technology to manage information. Over the past serval years, the accounting is changed from signal entry system to double entry system due to the change in accounting procedure. This causes the accounting software to change a lot. Previously accounting data is just needed for profit and loss accounts but now we also predict the profitability, the trends of profitability and a detailed analysis of factors affecting these profits.