Page 1 of 14
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 8
August 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 451
Practice of Accounting Information System in Private
Universities in Sylhet
Iehit Sharma*
*Senior Lecturer, Leading University, Sylhet, Bangladesh.
E-mail: iehitnipu09@gmail.com
Abstract
Accounting Information System is a way to
get competitive advantage, be up to date and
make decisions conveniently. AIS is used not
only for making financial statements, but
also for increasing efficiency and time
saving in an organized way. This study has
observed the use of AIS by four private
universities in Sylhet and found that the
practice of AIS is yet to undergo a modern
change. It is normally being used in data
management. Manual accounting system and
computerized accounting system are still
working together. Using computer is actually
for the purpose of operation. They should
use all the potentials of AIS and expand its
applications in every sector of work.
Keyword: Accounting Information System,
private universities, Sylhet
Introduction
In the 21st century, almost all organizations use
Information and Communication Technologies to
manage their operations efficiently, help
managers make better decisions and achieve
competitive advantages and facilitate seamless
internal and external communications with their
employees, customers, partners, and other
stakeholders. Until the 1990s, before the
widespread adoption of personal computers and
the Internet, companies used information systems
to manage data processing and record-keeping
activities associated with business transactions.
On the other hand, for more than half a decade
“Digital Bangladesh” has become the new
guiding factor of development. The widespread
use of the term clearly signals the government's
emphasis on the development of the information
and communication technology. Accordingly, the
government formed a separate ministry in 2011
and employed huge amount of resources in
several projects. The government has targeted
the educational institutions first.
Page 2 of 14
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 8
August 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 452
We know accounting is the language of business.
This AIS is responsible for providing timely and
accurate financial and statistical reports for
internal management, decision making and for
external parties such as creditors, investors,
regulatory and taxation authorities.
Since late 1980, it has created a flow of using
computers in various sectors in Bangladesh.
Along with this, Vision 2021 has created another
great influence. But now AIS is being used
mostly in commercial sectors like in banks.
In Bangladesh, out of 122 universities 85are
private and this study gives focus on using AIS
in the private universities in Sylhet.
Objectives of the study:
The mission of the study by observing the AIS
practice in universities is to give some
suggestions so that the universities can use AIS
more fruitfully. The main objective of the study
is to conceptualize AIS at Private Universities.
The other objectives are to identify the computer
based transactions in Private Educational
Sectors, identify the problems in the AIS and
recommend a guideline for improving AIS
practices (if there is any) in university sectors.
Rational of the Study
This study will help to know the present
condition of AIS practice along with its six
components in all the universities in Sylhet and
limitations context of its practice. This study will
also help to take the relevant steps to develop
AIS practice.
Methodology
Sample size– For the study, I have studied all 4
(four) private universities in Sylhet. These are
Leading University (LU), Metropolitan
University (MU), Northeast University
Bangladesh (NEUB) and Sylhet International
University (SIU).
Target population-Top level accounts executives
like Director Finance, Deputy Director Finance
of the mentioned universities on the basis of the
convenience for the author to collect data.
Data collection – The data collection process is
based on structured questionnaire survey.
Page 3 of 14
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 8
August 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 453
Data presentation and analysis– The author
focuses on the components of AIS by analyzing
the questionnaire and the findings are based on
self judgment. The data are presented in tabular
method.
Limitation of the Study
In this study, only private universities in Sylhet
have been taken into consideration. Secondly,
only Sylhet International University refused to
give any information regarding this study.
Literature Review
We know, accounting speaks the language of
business which records all transactions of firms
that can be expressed in monetary terms.
Accounting information is an important
ingredient for financial managerial decisions. In
developed economies, these decisions are worth
billions of dollars each year. Besides,
Accounting Information is an unbiased tool for
an effective administration. Accounting
information is generated to facilitate decision
making. On the other hand, there is a strong
relationship between accounting information
system and organizational effectiveness.
Although the information is generated from an
accounting information system, it can be
effective in decision-making process along with
the quality of accounting information,
performance evaluation, internal controls and
facilitating company’s transactions. Regarding
the above five characteristics, the effectiveness
of AIS is highly important for all the firms. The
main function of Accounting Information System
(AIS) is to assign quantitative value of the past,
present and future economic events. AIS by its
computerized accounting system produce the
financial statements namely income statements,
balance sheets and cash flow statement. The
system will process the data and transform them
into accounting information during input,
processing and output stages. (Onaolapo and
Odetayo, 2012).
Secondly, Accounting Information systems not
only contribute to functions of accounting but
also to incorporating the opportunities in
innovative applications of IT. AIS give
opportunities such as - data collection, data
maintenance, data management, data control
