Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-6, 2016 ISSN: 2454-1362, http://www.onlinejournal.in Imperial Journal of Interdisciplinary Research (IJIR) Page 127 Implementation of Electronic Accounting System in Business Environment Ibrahim Mustafa Khudir Soran University, Kurdistan region of Iraq, Soran 44008 Abstract: This paper will determine the conventional electronic based information system which was used for accounting and finance purpose; it is also called as Accounting Information system (AIS) (Romney and Steinbart, 2006). The purpose is to deliver a system which comprises of certain qualities such as, the domain of business areas by understanding its relevant requirements and loopholes (Carrington, Battersby and Howitt, 2006). Accounting Information System also determines any potential benefits it can provide to that precise domain and to overall organization. Furthermore, in this paper, all factors which have influence and are capable to affect the component of information system are briefly discussed. Accounting Information System is a devoted system whose prime purpose is to gather accounting data. After the data is gathered, it is transformed in a more meaningful information which can be used by the user (external user and internal user). The information which is produced by Accounting Information System can assist a user to administer their business operation in more effective and efficient way by executing relevant strategies (Information technology, 2012). However, AIS can be designed in manual form by using conventional way of recording and processing transaction of business with the help of pen and paper (Gelinas, Sutton and Oram, 2003). In modern days, this terminology of Accounting Information System specifies to those systems’ which are based on the computer that has the tendency to converge the capacity of information technology along with the principal and practices of traditional accounting. 1- Keywords: Accounting Information System, Enterprise Resource Planning, Traditional Method, Software Packages, Financial Transactions. 2- Introduction The Accounting Information Systems comprises of “Six Elements, and those elements are as follows: • Individuals – People who work on the system (User). • Instruction and Procedure – the methodology of managing, gathering and stashing the information. • Information – data which is associated with organization business operation and its environment. • Software – application that manages the data of an organization. • The infrastructure of Information Technology – the substantial apparatus like systems and personal computers. • Security Measures and Internal Controls – which is engaged to protect the organization’s data. 3- Literature Review At the inception of AIS development, the prime reason for its usage is to establish “in-house” as a traditional system. These form of a solution which is offered to the market is quite a complication to establish, and it requires greater maintenance cost. Nowadays, Accounting Information System is sold out as software packages which are prebuilt from vendors. The most famous vendor for developing Accounting Information System is Sage, Microsoft, Oracle, Group, and Sap. These vendors are considered to be specialized in developing customized AIS software to fulfill the requirements of company’s business operations (McNeill, 2004). Modernized Accounting Information System pursues an enrich architecture development consist of multi-tier programming, which isolates the data management and application processing in a various layer from the description to the user. The layer of presentation administers how the data is presented and used by the functional customer of that accounting system. The ways in which Accounting Information System can be used by customers are a user application, mobile devices, and web browser. All the information in a database is reserved and filled by a centralized database of an organization. This database includes the transactional information which is generated from the core organization’s business operations such as purchases, inventory etc. when any financial