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Pages:
1 page/β‰ˆ275 words
Sources:
1 Source
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Essay
Language:
English (U.S.)
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MS Word
Date:
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$ 5.27
Topic:

Why Databases are Important for Accounting Information Systems

Essay Instructions:

Please prepare a response post to the following:
In your opinion, why are databases important for accounting information systems? Describe some concerns, and explain why each one is important.
Databases are essential for accounting information systems. Without databases, it would be difficult to find trends or generate historical data needed to understand and improve systems. Databases also help to keep information secure. The major concern for me is loss of data. We had our system to crash, or what we thought was crashed. The IT manager could not get the database restored. He had failed to put the backups in a different location, and he could not retrieve them. We had to take our hardware to a data recovery specialist. They were able to recover all data without any discrepancies. This could have turned out to be a dire situation if the data could not have been recovered. Another concern is accuracy. A database will only compute and process what it is giving. Attention to detail is particularly important when entering data. We have quality control that reviews data entered for new customers and sales orders. QC also reviews and approves all journal entries for accounting and purchase orders. Once reviewed all transactions can be posted to the database.
Compare and contrast database management systems with databases. Give some examples.
Database management system (DBMS) and databases are one in the same. DBMS is the software that manages the data and the database is the data. One example that I can think of is Microsoft Access (MA). MA is the DBMS and the data is the information that we input so the DBMS can manipulate that data and produce the needed reports. MS is a DBMS that is not used as much as in the past. I remember MS being the first DBMS that I helped setup and manage. It is time-consuming to setup, and it does not provide historical data. Another DBMS that I am familiar with is Made 2 Manage (M2M). M2m is an SQL DBMS that has several different databases. The different databases include inventory management, sales management, lead management, and accounts payable and receivable. An additional database in M2M is FRX. FRX is the financial database, FRX will produce income statements, cash flow statements, and profit and loss reports. M2M does not have a database for fixed assets, It would be helpful to have all databases in the same location.

Essay Sample Content Preview:

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The database provides tables, rows, and columns that enable the accountant to establish historical trends to improve the existing systems. Databases are important to accounting information systems (AIS) because they facilitate secure storage and retrieval of vital accounting information. A well-secured database keeps accounting information secure from alterations by individuals with malicious intent. This way, it is possible to derive patterns and trends from the database to information on managerial decision-making processes in accounting. Data security and accuracy are the primary concerns in the AIS. Whereas you emphasize the physical aspects of system security, it is necessary to implement internal controls geared at protecting the software from hackers, viruses, and other external or internal threats. In addition, accuracy is important to ensure all transact...
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