Informative Function of Accounting and Information Technology Systems
The purpose of this study is to present basic rules of IT systems performance in supporting accounting in business entities. Представлены основные правила работы IT систем для поддержки бухгалтерского учета при организации бизнеса. Наведено основні правила роботы IT систем для підтримки бухгалтерск...
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Інститут проблем моделювання в енергетиці ім. Г.Є. Пухова НАН України
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| Cite this: | Informative Function of Accounting and Information Technology Systems / E. Wyslocka // Электронное моделирование. — 2007. — Т. 29, № 4. — С. 129-137. — Бібліогр.: 7 назв. — англ. |
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Wyslocka, E. 2016-06-07T09:16:40Z 2016-06-07T09:16:40Z 2007 Informative Function of Accounting and Information Technology Systems / E. Wyslocka // Электронное моделирование. — 2007. — Т. 29, № 4. — С. 129-137. — Бібліогр.: 7 назв. — англ. 0204-3572 https://nasplib.isofts.kiev.ua/handle/123456789/101793 The purpose of this study is to present basic rules of IT systems performance in supporting accounting in business entities. Представлены основные правила работы IT систем для поддержки бухгалтерского учета при организации бизнеса. Наведено основні правила роботы IT систем для підтримки бухгалтерского обліку при організації бізнесу. en Інститут проблем моделювання в енергетиці ім. Г.Є. Пухова НАН України Электронное моделирование Informative Function of Accounting and Information Technology Systems Информационная функция учета и информационные технологические системы. Article published earlier |
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Informative Function of Accounting and Information Technology Systems |
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Informative Function of Accounting and Information Technology Systems Wyslocka, E. |
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Informative Function of Accounting and Information Technology Systems |
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Informative Function of Accounting and Information Technology Systems |
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Informative Function of Accounting and Information Technology Systems |
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informative function of accounting and information technology systems |
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Wyslocka, E. |
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Wyslocka, E. |
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2007 |
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Інститут проблем моделювання в енергетиці ім. Г.Є. Пухова НАН України |
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Информационная функция учета и информационные технологические системы. |
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The purpose of this study is to present basic rules of IT systems performance in supporting accounting in business entities.
Представлены основные правила работы IT систем для поддержки бухгалтерского учета при организации бизнеса.
Наведено основні правила роботы IT систем для підтримки бухгалтерского обліку при організації бізнесу.
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Informative Function of Accounting and Information Technology Systems / E. Wyslocka // Электронное моделирование. — 2007. — Т. 29, № 4. — С. 129-137. — Бібліогр.: 7 назв. — англ. |
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E. Wyslocka, PhD
Czestochowa University of Technology
(E-mail: wyslocka@zim.pcz.czest.pl)
Informative Function of Accounting
and Information Technology Systems
The purpose of this study is to present basic rules of IT systems performance in supporting ac-
counting in business entities.
Ïðåäñòàâëåíû îñíîâíûå ïðàâèëà ðàáîòû IT ñèñòåì äëÿ ïîääåðæêè áóõãàëòåðñêîãî ó÷åòà
ïðè îðãàíèçàöèè áèçíåñà.
K e y w o r d s: accounting science, accounting experience, record-keeping technique.
The role of information in modern economy. Accounting as one of the oldest
economic science has developed in the space of many centuries. Along with civ-
ilization development and technical progress, also principles, methods and re-
cord-keeping techniques used in accounting have experienced changes. The be-
ginning of the 21-st century is characterized by acceleration in changes through-
out the economy and new challenges that come across enterprise managers. This
new stage of economy development is often called the New Economy. This term
is inseparably associated with Internet, telecommunication, and media indus-
tries, but also with readiness and ability to work and operate in rapid and volatile
environment over various geographical areas. Application of modern techniques
of collecting, processing, and transferring information within the structures of an
enterprise enables to implement changes in traditional methods of enterprise
management, to improve virtual customer relationship, and to enter global mar-
kets more easily. Internet and modern Information Technology, thanks to enor-
mous capabilities of collecting and transferring huge amounts of information in
a short while, has become nowadays basic instruments of doing business [1].
Because of new technical and technological capabilities, new concepts of
information management in enterprises have occurred. In the age of the New
Economy, the importance of information in economy development can be hardly
overestimated. The approach to information is currently a measure of level and
quality of civilization progress, and the information itself has become the third
fundamental value, apart from energy and matter. Life and business in contem-
ISSN 0204–3572. Ýëåêòðîí. ìîäåëèðîâàíèå. 2007. Ò. 29. ¹ 4 129
porary world require abilities to exploit information, which becomes the most
wanted and desired good – often with strategic importance.
Accounting as a strategic factor in enterprise information systems has been
already appreciated in Western Europe and the USA. It is practical knowledge
and cognitive qualities of information in the system of economic sciences which
have been noticed. Words of Noble Price winner P. Samuelson give evidence to
this: «We live in the world of machines. Not less important is that we live in the
age of accounting. General knowledge of basics of enterprise accounting is a re-
quirement of our modern life». He pays attention also to relations which occur
between economics and accounting and underlines that enterprise management
is senseless without elementary knowledge of accounting.
Accounting as an information system in enterprise. Beginnings of the ac-
counting go down to very distant times and it may be assumed that accounting is
a forefather of information systems in organizations. However presently, ac-
counting system can be found in an enterprise as a component of general infor-
mation system, which is equipped with computer measures or procedures, and
which process different types of data associated both with the strategy and oper-
ating business.
A starting point for further deliberations concerning accounting as an infor-
mation system in the organization can be characterized by an effort to explain
terminology associated with systematic approach.
The Webster’s Dictionary of English defines system as: «an assemblage of
objects arranged in regular subordination, or after some distinct method, usually
logical or scientific; a complete exhibition of essential principles or facts, ar-
ranged in a rational dependence or connection» [2].
In this definition crucial are:
coordination, i.e. intentional choice of elements;
system composition, i.e. existence of a set which represents the whole as-
semblage;
system structure, i.e. existence of invariable relations between elements.
As results from above-mentioned definition, an individual system operates
among other systems which account for its environment, and targets realized by
particular systems permanently influence themselves.
Considering reality from a systematic point of view, it may be claimed that
the whole world surrounding us consists of many systems. Accounting as an ele-
ment of information system in a business entity is considered to be one of such
systems. Present business conditions influence the fact that managing operations
of developed, large systems such as enterprises and other institutions, requires
expanded research and information search. Obtaining particular information in-
fluences or at least may influence decision-making process and becomes
E. Wyslocka
130 ISSN 0204–3572. Electronic Modeling. 2007. V. 29. ¹ 4
a conditio sine qua non of enterprise management. We obtain necessary infor-
mation as a result of data processing, which is an «organized performance of
data operations» according to Polish Standard PN-88/T-OIO1601. By data it is
meant: numbers, facts, concepts and orders presented in a convenient form to
transfer, interpret or process, and information are meanings (or contents) that are
attributed to data by means of appropriate procedures.
Dynamics of events which occur in business entities led to undertake advis-
able and expedient efforts in order to process data obtained by observations and
measurement, and to transform them into useful information. It affected the es-
tablishment of group of information systems. These systems are designed for
collection and storage of information.
Information system — like every system — has a composition, coordination
(a set of intentionally selected elements), and structure (relations between those
elements) [3].
Accounting is one of the elements of information system in an enterprise
and has many duties to perform. The most important function, which is attrib-
uted to accounting in an enterprise, is called information function. It briefly con-
sists of creation of information related with economic phenomena and pro-
cesses. It is fundamental to adjust that information to requirements of users who
make use of them in formulating various opinions and make different decisions.
Modern accounting system is oriented both on internal (from an enterprise)
information users, and on external users from enterprise environment. Taking
into account this classification of recipients who obtain information from ac-
counting system, internal and external accounting information function can be
distinguished (Fig. 1).
The fact that accounting encompasses only events, which can be presented
by the value approach, is a distinctive feature of accounting that distinguishes it
from other subsystems in the framework of general information system.
Adaptation of homogenous money measures which entails aggregation op-
portunities, places accounting in a remarkable position within the structures of
enterprise management information system. In this way, accounting becomes
the only information subsystem which is able to standardize diversity of transac-
tions and to provide unified picture of observed phenomena [3].
Accounting systems applied in practice represent a fundamental and formal
information structure in organization that facilitates management process. Fi-
nancial measurement and evaluation of achievements integrate into one entirety
all activities, starting with basic and single, through particular responsibility
centers, and concluding with a company as a whole structure. Synthetic view of
economic condition of the company can be described by the information con-
tained in financial statements. Credibility and reliability of this information de-
Informative Function of Accounting and Information Technology Systems
ISSN 0204–3572. Ýëåêòðîí. ìîäåëèðîâàíèå. 2007. Ò. 29. ¹ 4 131
pends on conformity to rules enclosed in accounting legal regulations or profes-
sional standards adopted by a given country, and also on compatibility with In-
ternational Accounting Standards [4].
Contemporary economy conditions impose on accounting new require-
ments and necessary changes associated with accounting transformation from a
passive tool (restricted to bookkeeping) into active instrument. For instance
planning profit and loss account is a useful tool that can be adopted and exploited
by the management board in order to control business processes for the purpose
of obtaining required profit level. With the help of active accounting, bookkeep-
ing provides the information about the level of progress in realization of the plan
(such as the level of income) and deviations from this plan. Accounting therefore
becomes an instrument of planning, managing and controlling [5]. It is account-
ing system in the enterprise that is expected to process and transform data into
information. It is conducted by the course of certain logic and arithmetic activi-
ties. The process of collecting information considered during enterprise manage-
ment through the accounting system is shown in the Fig. 2.
Accounting techniques. Accounting techniques are represented by a group
of technical devices used for bookkeeping data processing — currently one can
distinguish manual, machine and computer techniques.
Manual and machine techniques are nowadays rarely used, and if this is the
case, they contain adders, calculators and accounting machines. However, the
most significant and powerful tools are designed with computer techniques,
E. Wyslocka
132 ISSN 0204–3572. Electronic Modeling. 2007. V. 29. ¹ 4
M :
lanning,
organizing,
coordinating,
motivating,
controlling
anagers
p
O
I
B
C
L
C
A
wners
nvestors
anks
ontractor
ocal and
entral
uthorities
Internal information
function
External information
function
Information
function of
accouting
Fig. 1. Internal and external information function of accounting and information recipients
which enable to automate activities associated with performance of accounting.
This technique can be applied in a very broad range of issues and most often used
in bookkeeping. Computers are elaborating the information automatically based
on appropriate software. A man is engaged in a limited area and his activity co-
mes down to data keeping and exploiting the output data, which are presented in
the form of printouts (tabulators) or on the screen. Opportunities associated with
utilization of this technique depend on generation, grade and capabilities of the
computer, or even more on the quality of software installed. In comparison with
previously used techniques, computer technique is characterized by:
great speed of outcomes processing and confidence,
multifunctionality,
large capacity of memory and easy access to the information stored,
ability to adjust the information to requirements of a particular recipient —
any level of detailed information in multi-sectional view is available.
The advantage of synthetic over analytic picture is a common feature of all
accounting techniques based on manual recording, i.e. tabular and duplicating
bookkeeping. First, the information is recorded on synthetic than on analytic ac-
Informative Function of Accounting and Information Technology Systems
ISSN 0204–3572. Ýëåêòðîí. ìîäåëèðîâàíèå. 2007. Ò. 29. ¹ 4 133
Data
Information
Data collecting:
bservation,
measurement and
valuation,
documentation
o
Data processing:
bookkeeping,
settlement,
calculation,
records verification
Presentation
of information:
reporting (ex post),
analysis,
planning (ex ante)
Fig. 2. The process of collecting information through accounting system
counts. However as far as automated accounting is concerned, things are orga-
nized reversely — first, the record in analytic accounts occurs, then as a result of
aggregation of records, synthetic amounts are compiled. Analytic accounts work
here in the same way as synthetic accounts in manual bookkeeping systems.
Financial computer systems. Accounting can be considered as a tech-
nique, science or even art, depending on the interests and competence of the
speaker. One thing is beyond any doubts — accounting was constructed and
formed first of all with the great influence of practice. Therefore, in order to
make activities more objective, an IT system in accounting can be successfully
implemented. The process of IT system implementation consists of all activities
from the moment of identification of needs to exploit such a system, through a
decision-making process, project realization up to utilization of the system. The
aim of these activities is to fulfill all accounting functions in business in order to
improve efficiency of particular divisions in organization, which significantly
influences financial standing, and market competitiveness of the enterprise. It
should be underlined that accounting becomes a necessary compromise because
of satisfying contradictory objects and requirements of the users.
A process of computerization in accounting has evolved into a multifunc-
tional and multi range system of IT support. This system, as every IT system,
consists of the following elements:
people, data (information), computer hardware, software packages, user and
operation procedures. Effectiveness of this system first and foremost depends on
software packages because they determine range, methods and techniques of au-
tomatic realization of accounting processes. Cooperation between all elements is
important as well. It may come true together with implementation of the system
in the enterprise.
There is a variety of financial computer systems, intended for future users
with diversified needs, available on the Polish market. These systems can be di-
vided into standard software packages (designed for multiple sales and imple-
mentation) and dedicated packages (created for particular entities with specific
requirements). In executing accounting obligations micro enterprises can exploit
straight-forward software solutions like appropriately developed Excel spread-
sheets. Small and mid-sized enterprises use more complex software that is pro-
duced by one of many companies which offer such programs (Comarch-com —
application programs CDN OPTIMA, CDN XL, Insert – Rachmistrz 4, MSM
(RAKS) — RAKS DOS, RAKSSQL, InSERT — SYSTEM Rewizor, Matrix.pl —
Symfonia). Large enterprises with a developed organizational structure use very
complex systems which qualify to ERP class (enterprise resources planning), i.e.
systems such as SAP, BAAN, IFS Application etc.
Such expanded selection of software creates dilemma – which of the pro-
grams offered should be chosen. Therefore, in order to facilitate the choice of a
E. Wyslocka
134 ISSN 0204–3572. Electronic Modeling. 2007. V. 29. ¹ 4
proper system from among such diversified application packages, the following
classification has been made:
application accounting system,
informative and analytical supplements,
communication supplements.
A separate problem is associated with an assessment and proper choice of fi-
nancial computer system. In order to facilitate the process of system investiga-
tion, the two basic groups of characteristics have been distinguished. The first
group encompasses performance of accounting as an informative system, which
results in substantial and content-related features such as: usefulness for both in-
ternal and external recipients of information, credibility, correctness, transpar-
ency and verifiability. These features are considered to be essential because the
system without them is disqualified. The second group of features takes into ac-
count efficiency and handling performance achieved through implementation of
constructional and technological solutions. The following characteristics can be
mentioned here: framework structure and susceptibility to changes and supple-
ments, modernity, flexibility, friendly interface, compatibility with other soft-
ware application and instrumental packages, ability to transfer the system to
other hardware and software platform.
Assessment and comparison of quality of particular systems on the basis of
above-mentioned features is not simple and obvious. Some of the requirements
are formulated too generally and it is difficult to determine whether they are ful-
filled or not. What is more, these particular requirements may be fulfilled to a
lesser or higher degree.
Advantages and disadvantages of implementation of modern book-
keeping systems. Application of computer systems in accounting, apart from
undoubted advantages, brings also some concerns and compels to special con-
trol. It comes out of a fact that books kept with the help of computer or in other
words – a virtual bookkeeping consists of data resources stored on machine car-
riers which are not directly readable for a man. They are susceptible to destruc-
tion or rubbery, similarly to hardware or software applications, which process
this collection. However, some additional and proper safety devices and copies
can be used in order to protect against unexpected events.
Application of the modern Information Technology in an enterprise signifi-
cantly accelerates and improves the process of obtaining necessary information
that enables to create savings through cost reductions (faster record filling, sim-
pler search according to different criteria, performing of statements, summaries,
reports and analyses). Unfortunately automatic processing of accounting opera-
tions with the help of suitable applications causes the decrease of human influ-
ence on the outcome of this processing. Mistakes, which would be easily noticed
in case of manual recording, often remain undiscovered in case of computer uti-
Informative Function of Accounting and Information Technology Systems
ISSN 0204–3572. Ýëåêòðîí. ìîäåëèðîâàíèå. 2007. Ò. 29. ¹ 4 135
lization. It means that errors, which occur during system designing or during
changes in those systems, may for a long time, remain undetected.
Computerization of bookkeeping is associated with standardization of pro-
cessing all data and therefore it is to a lesser extent susceptible to direct human
mistakes in contradiction to manual processing. Equal treating of business oper-
ations according to the same program instructions eliminates mistakes, which
occur in case of manual processing. Simultaneously, program errors affect all
accounting operations, which are processed in the same conditions.
Another specific feature of computerized bookkeeping that is important
from the accounting principles point of view is a possibility of creating (or gen-
erating) bookkeeping operations without issuing documents and storage of doc-
uments in electronic form. It entails savings in costs of paper, exploitative mate-
rials or office area, which is intended for documentation storage [6,7].
In electronic bookkeeping, a series of control procedures are performed by
programs in a way which is invisible for people whereas in traditional bookkeep-
ing a visible track of conducted control remains (for instance a signature on con-
trolled document). In the case of computer recording, bank supervision authori-
ties and Revenue Office inspection that control the company do not need to en-
gage as large human and time resources as in the case of traditional accounting.
Computerized bookkeeping corresponds also with significantly lower
amount of people employed (lower salaries costs), however the personnel en-
gaged in data processing (associated directly (users) or indirectly (designers,
software suppliers) with financial computer system) are in possession of detailed
knowledge concerning interrelations between data source, processing, distribu-
tion and exploitation of outcome information. The employee may be also aware
of shortcomings of internal control systems, which favours to unauthorized
changes in data or programs during their storage or processing.
A remarkable danger results from a purposeful use of programs that are de-
signed for criminal aims or from an abuse of instrumental programs. Addition-
ally, due to easy access, there is a possibility of exploiting data and programs by
the people who are not entitled but know how to use them.
It is difficult to unambiguously determine the right and responsibility, be-
cause many users may simultaneously use some of computer resources (for in-
stance programs and data). It is not always possible to divide conflicting func-
tions, because one program may perform the functions which would be assigned
to different people in the event of traditional solutions.
All these circumstances justify the opinion that together with computer sys-
tem development which supports the accounting, an improvement in internal
control system strictly linked with electronic bookkeeping is essential.
Íàâåäåíî îñíîâí³ ïðàâèëà ðîáîòû IT ñèñòåì äëÿ ï³äòðèìêè áóõãàëòåðñêîãî îáë³êó ïðè
îðãàí³çàö³¿ á³çíåñó.
E. Wyslocka
136 ISSN 0204–3572. Electronic Modeling. 2007. V. 29. ¹ 4
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3. Dziedziczak L., Stepniewski J. (eds.) Accountancy system assisted with computer. — War-
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ment of Accountancy in Poland, 1998. — 432 p. (in Polish).
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Polish).
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Ïîñòóïèëà 02.04.07
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