Project Report On “Positive Correlation between Accounting Information Systems and Organization’s Performance- in Depth Review of literature”

Abstract

In recent decades, Business strategy and policy are becoming more complex and competitive because of the technological revolution in business. This study is to examine the positive correlation between accounting information systems and an organization’s performance by using a review of the empirical literature approach. Using an exploratory research design, this study proves that there is a positive correlation between Accounting Information Systems on the financial performance of an organization. The study recommends organizations should adopt the use of AIS because it plays an important role in adding value to firm performance through help to make better managerial decisions, being more effective in internal control, enhancing the quality of financial reporting and transaction processing, increasing operational efficiency by reducing operational budget and costs, and increasing a firm’s turnover by reaching target customers, etc. The study also recommends that to be successful in the proper implementation of accounting information systems, the users of AIS must have a proper documentation process, an organized and tight internal control framework, and an advanced IT infrastructure.