The Needs of Databases in Accounting Information Systems
An accounting information system is a system where the process of inputting transaction data into financial information will be used as output from the system itself. Generally, an accounting information system will be used to process information regarding:
- Sales of products or services from customers
- Purchase of raw materials from suppliers
- Cash receipts from customers
- Cash disbursements to suppliers
- Cash disbursement for the payroll
The information taken is usually about the results of the transaction because the data is important for the company to solve a problem. Besides that, the company can manage the data to be reviewed to get goals and opportunities for the company. This information can be used by the company to design a strategy and a decision that will later be taken as a solution to advance the company.
The Database system is software that can be used by companies to create a system for company data to be stored neatly and safely. This software utilizes a series of data that can support the process of making to maintaining an application used by the company. The database system is more focused on processing large amounts of data; besides that, this system is used as an intermediary between database users.
With the existence of a database system, it can make it easier for a company to store its important files without having to be afraid of being stolen by people. Usually, to access the data, only people with permission can open it. With a database, it can help companies to carry out tasks quickly, and the files will be stored neatly.
Of course, in the use of accounting information systems in companies or other fields, there are problems and challenges faced. The main problems in accounting system information include data quality issues. Data quality has become a common problem in companies that use accounting information systems. Stored data is an important aspect of the company in various situations, especially when making decisions, financial analysis, preparing financial reports, etc.
With much data, the possibility of inconsistent and incomplete data is very high. This is generally related to poor data storage methods or data storage in traditional ways such as paper, documents, etc. Poor data storage also affects the auditing process and makes the accounting workforce less effective because the data is not stored properly and make it difficult to analyze.
Therefore, the use of databases in accounting information systems may solve some problems faced and make it much more effective. A Database Management System or DBMS, a computerized data-keeping system, could help in ways how data is stored. With the use of DBMS, data and information is stored neatly and safely, reducing the risk of low data quality from incomplete or inaccurate information. DBMS could also help facilitate the storage, retrieval, modification, and deletion of data in conjunction with various data-processing operations.