Databases in Accounting Information Systems: Importance and Concerns

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Databases are important for accounting information systems. Generally, organizations exploit database systems because of their ability to highlight information on key areas of interest, such as inventory and transactions, among other factors (Kim, 2022). Key insights are drawn from the databases and exploited to enhance operational efficiency and manage risks and financial position. Accounting information systems rely on databases for the data sharing benefits based on their ability to integrate data. Apart from data sharing, they store data regarding inventory, and transactions, among other information that can be used to influence the organizational financial position and manage risks. The information shared, in this case, is often used to influence decisions. The prevalent concerns of databases include security and privacy, especially since they host confidential and important business information or records. The other focus is on data accuracy and design, which is based on the availability of inaccurate data, thus inviting unexpected results, which is detrimental to an organization. Also, databases need comprehensive designs that can facilitate faster and more accurate data retrieval. Another key concern is distribution, which is based on the fact that a database can include information from various sites or similar networks in a centralized physical location.
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