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Accounting System as a Management Information System
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Aviles, Thomas Edison R Feasibility Study
| 4.2 Accounting System as a Management Information System Hunton (2002) is of the view that in any business organization, the accounting system is the major quantitative information system. He states further that it provides information for the three broad purposes as follows i) Internal reporting of managers for use in planning and controlling. ii) Internal reporting to managers for use in making non- routine decision and in formulating major plans and policies. iii) External reporting to stockholders, government and other outside parties. Managers contribution is quite relevant because it highlights not only the centrality of accounting in the information system of all business organizations, but also draws attention to the users and benefactors of such information so derived. However, Wilkinson (1993) stated that an organization information system can be divided into two the formal portion (of which computerized data can be apart) and the informal position. The formal position can be divided into the areas of the firm’s activities. There are three major areas of information system, namely the financial information system, the personnel information system and the logistics system. They went further to comment on computer based information systems - that widespread of computer in credit management provides certain essential up-to-date information for analysis. All of the information can be placed in computer storage readily accessible to the credit department, indeed the computer can provide avast way of detailed information. Although much of what comprises an organization system is not computerized, the part that is, is often significant. In fact, it maybe of greater importance than its proportion to the total information system. In view of the great importance of information to bank lending and nearly all the activities of a banking organization, the right type of management information system must be designed to the right quarters and at the right time. In developing a management information system, designers must be aware of the process of managing a business. This is to make the information understandable and effective in assisting the manager and induce him to take appropriate actions. These however, reveal that decision makers do not generally lack information but experience information overload. Management information problem may thus be seen as not that of lack of relevant information or that of getting the information, the say they need but lack of being overwhelmed with information. Download 315.17 Kb. Share with your friends:
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