Question

How does a senior accountant role tie into accounting information systems?

Answer 1

A senior accountant plays an important role in Accounting Information System (AIS). The information provided by senior accountants to the top management is considered to be the vital one . In all type of industries whether it is banking or insurance , retail or aviation , manufacturing or retail , a senior accountant is considered as the first among equals and the main reason for the same is that he  is the main source of the information with respect to its performance , current status of the business, whether the business is growing , comparison with other similar companies , future planning , what has gone bad in the previous period and so on.

In any type of business a senior accountant involves in the business mainly in three ways:

1. User of information : A senior accountant is probably the first user of accounting information . He develop an accounting software in coordination with IT team. Firstly he ensures that the software system developed by IT team is user friendly and informative. He uses it by himself and ensures that it works well according to the requirement Once he certifies it himself , he recommends it to the top management for its implementation of the same in the business.

2. As System designers: A senior accountant takes active participation in developing a good AIS. He is the most knowledgeable person to get involved in this job. He is an expert on this subject and possesses a vast experience in all areas. He determines the nature of the information required, its sources, its destination, and the accounting rules that need to be applied. The computer professionals determine the most economical and effective technology for accomplishing the task. Therefore systems design should be a collaborative effort.

3. As a system Auditors: : It is widely known fact that accountants are the main auditors of any businesses. Once the system is implemented in the business it is the duty of the senior accountant to ensure that the system is working smoothly and is implemented well as desired. Auditing is a form of independent attestation performed by an expert who expresses an opinion about the fairness of a company's financial statements. Public confidence in the reliability of internally produced financial statements rests directly on their being validated by an independent auditor.

There are two types of auditing namely Internal Auditing and External auditing. The task of internal and external auditors are similar. The main difference of two with respect to the area of their work is that external auditors represent third party outsiders whereas internal auditors represent the interests of the management.

To conclude , the most important point is that the AIS must be working in line with other information systems . Accounting information system is not everything in the business but removing it from the business will have adverse business impacts both in short and long term perceptive.