The Usage of Accounting Information for Organizational Management

Abstract

           Currently, technological changes happen rapidly which affects tremendous exchange of useful and useless information in the society. To run a business smoothly, a company has to rely on useful information. Accounting information system, which is a part of business information, can significantly supports the organizational management in making decision accurately and. Accounting information system uses to collect the accounting data for CEOs. It is used in strategic planning and the operation of an organization. An organization has to have an accurate and complete information for creating the competitive advantages strategies both in long term and short term.

           The characteristics of accounting information system in the management vary according to the administrative level, which are divided into three levels: 1) The operational management level - the data will be mainly used for the operation control.  2) The middle management level - the data will be mainly used for the short-term planning and management control according to the CEOs' policy. 3) The Chief Executive level - the data will be used for the long-term planning policies, including strategic planning to achieve the organizational goals.

           Therefore, the accounting information system is useful and very important for the entire level of management in order to achieve the goals of the organization, by using accounting information system to improve the quality, reduce production costs and increase efficiency and effectiveness in the operation of the organization.