chapter5.pptx - Accounting is the language of business and you have to learn it like a language You can't be comfortable in the country if you aren't

chapter5.pptx - Accounting is the language of business and...

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CHAPTER 5 ACCOUNTING INFORMATION SYSTEMS “Accounting is the language of business, and you have to learn it like a language. You can't be comfortable in the country if you aren't comfortable with the language. To be successful at business, you have to understand the underlying financial values of the business.” Warren Buffet
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Chapter Five Outline Introduction and Accounting Information System General Ledger Chart of Accounts Transactions Trial Balance Financial reports Accounts Receivable Customer Accounts Invoices Transactions and Account Balances Reports and Period Closing Payroll Employee Information File Employee Hours and Checks Reports and Period Closing Accounts Payable Vendor File Invoice Approval and Payment Vendor Checks and Check Register Reports and Period Closing
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Chapter Five Outline Information Technology Auditing and Internal Control Control Environment Risk Assessment Control Activities Information and Communication Monitoring
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Introduction Accounting is several centuries old. Luca Paciolo, an Italian mathematician and Franciscan Friar, developed the double-entry accounting system (debits and credits) in 1494, which revolutionized business and earned him the title “Father of Accounting.” Computers have made accounting tasks easier, faster, and more accurate. The computer posts all entries correlated with a transaction. It also enables records to be found more quickly (e.g., outstanding invoices) and automatic document production (e.g., pay bills, create purchase orders, etc.). Accounting is a discipline that all hospitality graduates, regardless of job position, should have knowledge of. While managing and interpreting accounting transactions and information may not be as fun as creating new menu items or talking to customers, these skills are crucial to business success and cannot be overlooked.
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Accounting Information Systems (AIS) The application of information technology to an accounting system creates an ACCOUNTING INFORMATION SYSTEM (AIS), a computerized system for recording accounting transactions and information. The configuration, scope, and capabilities of an AIS primarily depends on the type and size of the hospitality organization, the ownership/affiliation, the information needs of management, and the regulatory requirements
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Accounting Information Systems (AIS) Most independent restaurant owners, for example, use Quickbooks accounting software because it is inexpensive and easy to use and navigate, has integrated help screens, and meets their information and reporting requirements. M3 Accounting Services has become the market leader in hotel accounting software by providing a feature-rich, cloud-based solution that eliminates up-front investments, upgrades, and system maintenance.
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Accounting System Purpose of an accounting system: To record all financial transactions that occur with customers, suppliers, employees, and financial institutions.
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