Effect of Accounting Information System on Financial Performance of Firms: A Review of Literature

Abstract

In today’s world, Accounting information system is an absolute tool in the hands of managers striving to remain in a competitive advantage amidst the rapid technological advancement, increased awareness and challenging demands from customers and business owners. This study seeks to evaluate the effect of Accounting Information System on Financial Performance of Firms, using a review of empirical literature approach. By means of an exploratory research design, the study concludes that the biggest impact Information technology has made on accounting is the ability of companies to develop and use computerized systems to track and record financial transactions in facilitating management decision making, internal controls, and quality of the financial report. The study therefore recommends that the utilization of Accounting Information system, in other to continue to drive effective performance that can sustain productivity, must remain a focal point in every organization.