Systems tools and

techniques of accounting
information system
 Contents
 Accounting information systems
 Flowcharting
 Decision tables
 Document design
 Coding considerations
 Scheduling charts
 Pert/cpm
 Conclusion
 References
Accounting information systems

Accounting information system encompass

the processes and procedures by which
an organisation’s financial information is
received, registered ,recorded, handled ,
processed , stored , reported and
ultimately disposed of.
 Flowcharting

 Basic function of information system

 It provides a pictorial information about the
system that is often difficult to communicate
through language alone.
 Used in two broad areas.
 developing new systems
 evaluating existing systems
 Types of system flowcharts

 Systems flowcharts
 Document flowcharts
 Micro document charts
 Program flowcharts
 Systems flowcharts
 Provides a logical diagram of how a
system operates.
 Designed in any format to meet the needs
of users
 Used for system evaluations
 Document flowcharts

 Emphasis on the document flow from one

department to another
 Micro document charts
 This flowchart ensures that there are no,
 unnecessary copies
 Duplication of efforts
 Program flowcharts
 Means systems or functions that are to be
placed on computers.
 Decision tables

 A systems analysis and design technique

that makes use of logical data flows and
decision alternatives found in flowcharts .
 Document design

 Document contains fixed data and variable

data
 All documents should be designed with
the user in mind.
 Factors to be kept in mind by the
designer
 Users and their needs must be known
 To determine proper number of copies
needed
 Source must be easily identified by the
user
 It must be legible and understandable
 Adequate space should be there
 Clear instructions for filling the form
 Coding
considerations
 A code is a system of arbitrary symbols
used to represent something , usually a
word, a group of words, a set of numbers
or a combination of items.
 In accounting codes are necessary to
facilitate the handling and transcription of
data and information.
 Characteristics of codes

 Code order should be maintained

 No code is used twice in a given scheme
 It should be standardized
 It should be as short as possible
 It should be adaptable for all users
 Chart of accounts
code Basic accounts
 001-099  Current assets
 100-199  Plant and equipment
 200-299  Other fixed assets
 300-399
 Current liabilities
 Long term liabilities
 400-499
 Other liabilities
 500-599
 Capital stock accounts
 600-699  Retained earnings
 700-799  Income statement accounts
 800-899
 Scheduling charts
 Scheduling charts define the activities to
be undertaken, the amount of time for
each activity , and the dates of each
activity.
 Pert/cpm
 Program evaluation and review technique
(pert) and critical path method (cpm) are
the primarily scheduling techniques that
relate the activities of a project to each
other in terms of time and dependency.
 conclusion
 In today’s complex information systems ,
accountants should be aware of the various
tools and techniques and their proper use and
application. The basic benefits that are
provided for accounting users include
improved control , reduced costs , and
greater data utilization.
 Different techniques and tools of accounting
information systems are to be used according
to the needs of a particular user or
requirements of the accountants.
 References
1. Davis,J.R,Robinson, L.A , Alderman ,
C.W.(1988). Accounting Information
Systems.New Delhi:Harper International.
2. Joseph,P.T.,Prentice.S.J.(2007).E-
Commerce:An Indian Perspective.New
Delhi:Hall of India.
3. Laudon.Kenneth C,Traver.Carol Guercio.
(2009).E-Commerce.New Delhi,Dorling
Kindersley.