Accounting information system (AIS) is a process of collection, storage and processing of the data related to finance and accounting. The data yielded by the accounting information system is utilized and analyzed by the decision makers. Basically, it makes use of the accounting data and the data related to information technology. In any business, this data obtained by accounting information system is analyzed and utilized by the managers, consultants, different analysts, regulatory authorities and different auditors. Therefore, this system is used to collect, store, and process the data and convert this data into information and transferring it to the ultimate users. The data obtained from the accounting information system is helpful in the decision-making process by the management. (Roh, 2009) The users and handlers of this data are CEOs, managers, investors, and creditors.
In this planning reports, I utilized and implemented the accounting information system in my reselling business startup. I established the online reselling business startup. The reselling business focuses on the resourcing of the products from the manufacturers to the ultimate users. I dealt in the ready-made products from the manufacturers and sell them to the ultimate consumers. Moreover, to increase the diversity of my products, I also resourced the products from other online selling websites like Amazon and Alibaba. In that online selling business, I didn’t hold on some products or any specialized products. However, I focused on the products which have more demand in the market and customers want them in bulk and these are ordered frequently. I used the reseller apps for the obtaining the merchandise from this business. Moreover, I also launched my own online selling website for this purpose. Through these apps and websites, I would be able to resource a wide range of the products to the ultimate customers easily. Moreover, I also used the social media channers like Facebook, Instagram, and twitter for the outsourcing and advertisement of my products (Doronina, 2018).
In the next step, I adopted the accounting information system (AIS) in my online reselling business. The important components that I included in the accounting information system are people with relevant expertise, procedure of implementation and instructions, data, important software, the infrastructure of the information technology used in the business, better internet controls, and output. The people who used the accounting information system are the most important asset in the business (Satyanarayana, Kumar Behera and Kumar, 2018). This system helps to do a common task with a group of people having different skills. The management set the particular sales goals and the staff delegated them to the inventory. The information about the new payable is delivered to the accounted department from the inventory. The sales people are related to the orders of customers, the process of invoicing the customers is done by the accounting department, the assembling of the orders is done by the warehouse and sending these products to the customers is done by the shipping department.
There are some risks in the accounting information system. The data about the business is always present on the computers. This information and data can be lost if the system crashes. On the other hand, the increased use of the computers can lead to the health dangers and high cost of the medical expenditures (Suomi, 1994).
In the same way, there are some opportunities in this system also. It provides the speed and safety to the business. Moreover, it also provides the automation to the reselling process. It is also an efficient system of reselling and extracting the accurate data about business.
Reference
Doronina, Y., 2018. Method of Structural-Functional Synthesis Information System Taking into Account the Fuzzy Binding Functions. INFORMACIONNYE TEHNOLOGII, 24(9), pp.618-624.
Roh, T., 2009. Development of the Financial Account Pre-screening System for Corporate Credit Evaluation. The Journal of Information Systems, 18(4), pp.41-57.
Satyanarayana, V., Kumar Behera, R. and Kumar, G., 2018. Online Price Comparator and Reselling Website. International Journal of Engineering & Technology, 7(2.7), p.512.
Suomi, R., 1994. What to take into account when building an inter-organizational information system. Information Processing & Management, 30(1), pp.151-159.