Abstract:

This study seeks to examine the use of Accounting Information Systems (AIS) by I.D.E.M1 company, and its contribution to the knowledge management and strategic role of the organization I.D.E.M is a company that registered in Tabriz and operates in heavy machinery industry. The company used automated AIS known as ‘Contract Plus Financial & Project Accounting’ package commercially developed by a private company (ABC). Wide variety of people that involve in the company’s operation within and outside the organization uses accounting information generated by this system for decision making. Based on input provided by operational level managers, the Contract Plus software produces monthly projects’ income statements, balance sheets and statement of changes in financial position for the strategic and tactical managers to plan, control and make decision on the resources allocation. The  role-played by AIS enhanced the organizations' accounting functions, and add information value. The automated AIS speed up the process to generate financial statements and overcome human weaknesses in data processing. The system enhances management of resources and the process of monitoring, control and prediction of I.D.E.M business for better future. With the advent of AIS, the growth of tacit and explicit knowledge could be seen from the intensive training of personnel at the early stage of system implementation to the development and use of company’s own manual in training of new staff and assisting the job of existing staff. Given the benefit of AIS to I.D.E.M, this paper recommended that the source of data should be fully automated, and the existing system should be upgraded through computerize the pre-tendering and post-tendering of projects to enable AIS integration.