Adoption of Accounting Information Systems in Businesses

Introduction

The development of e-services and e-commerce affects the activities of accounting. Internet technologies and social media change the structure and functions of the Accounting Information System (AIS). Big data and blockchain show that the accounting system should be approached with a new perspective. These changes emphasize the need for companies to better understand the adoption and use of information systems. In the globalization age, enterprises search to improve the productivity and effectiveness of their activities for high profitability and increase performance. To provide economic value from knowledge, specially developed systems aim to process and manage information. The material weakness of information technologies is a factor that negatively affects managers' decisions (Holder et al., 2016). The enterprises that have access to and manage information gain a competitive advantage. To achieve this goal, there is a need for systems combining communication techniques and technology. Information systems are created and implemented to enhance performance through the whole organization. The presence of the system helps managers decide. Information is data that have been organized and processed, so that gives meaning and improve the decision-making process (Romney & Steinbart, 2017).

High-quality information has valuable characteristics for decision-making (Mohamad et al., 2017). O'Brien & Marakas, 2011). Qualification of decision-making contributes to the increase in effectiveness. Quality and use of information are produced by an effective accounting information system (Wilkinson, 2000). Many studies reveal that information quality is effective in the growth of businesses and in the development of performance. Accounting information system (AIS), an effective tool to respond to internal and external changes, can increase the success of the business. Accounting information system, which is one of the most important sub-systems in the organization, changes the acquisition, processing, storing and distribution of information (Hall, 2018). The accounting information system is a system that collects, records, stores and processes data for the decision maker.

The accounting information system is a mechanism that combines software, hardware, network communication with the human element (Wilkinson, 2000). The accounting information system is a function provides and assess financial data that is intended to be useful in making economic decisions). It engages in financial and economic operations which affect decision making about allocating resources effectively. Accounting plays a critical role in making economic decisions. Automated accounting information contributes to the reduction of human error in business and accounting processes (Dalcı & Tanış, 2009). Good management of resources and better control of costs, increased success in budgeting and forecasting are fundamental contributions of accounting information system. Accounting information allows the company to prepare a plan by affecting the budget preparation. Therefore, enterprises need to adopt AIS, which is key to an organization to organize, manage and operate the process in the business environment. Ismail (2009) states that firms are concerned to the issues of their AIS quality by the search to develop accounting information system adoption effectiveness.

To apply the accounting system successfully, it is key to emphasize the quality of adoption to manage all the processes of system design. The elements of the system interrelated and integrally work with harmony (Hurt, 2013). The key to system success is the correct adoption of the components by the business. Laudon & Laudon (2012) state that adoption and integration should be smooth for a preferred system to be effective. System adoption can be affected by many organizational and individual factors. It is important to examine the factors affecting the adoption of the accounting information system in the enterprise because of company sustainability.