Financial Ais Analysis

The financial accounting systems we have known for more than 500 years are changing dramatically as a result of advances in information technology and financial accounting software. For example, databases allow accountants to collect and store all the data about a transaction or other file entity in one system, allowing those needing such information to retrieve it quickly, efficiently, and specifically in any format they wish. Financial data can be more easily linked to nonfinancial data as a result of database technology as well. Thus, it is likely that financial reporting will undergo tremendous change in the next few years as we learn to use technology more effectively in the design of financial AISs.

ERP systems are another example of the information age's impact on financial accounting. Now, organizations capture more data and produce more information than ever before. This allows companies to integrate more of their financial and non-financial system, better forecast everything from raw materials requirements to finished product production, and to perform more sophisticated analyses of important business functions. For instance, sales can be examined at many different levels and organized according to criteria such as geography, customer, product, or salesperson at the touch of the keyboard.

One of the most important changes in AISs is the way these systems will gather financial information in the future. Although many of these systems will continue to capture data in traditional batch mode or at POS sites, we expect newer systems to collect more of it on mobile devices—for example, cell phones, PDAs, and digital cameras. Because more employees are working from home these days, “digital commuting” may be another trend.