January 18, 2022


Accounting + Finance Blog

Meaning of System Development in AIS

Meaning of System Development in AIS

An Accounting Information System (AIS) is not a natural thing. It must be designed by a professional. Whatever design is made must satisfy end users. If not it lacks usefulness. What is system development? And who are the three main persons or users involved in system development?

Definition — What is System Development?

System development is the process of planning and designing software that is useful to end-users and other stakeholders.

Steps in Developing a system

Ideation. Here an idea of how to solve a particular problem is conceptualized by a person or group of persons. This can be by brainstorming or utilizing the knowledge of systems developed by other professionals.

Planning. Next is to plan the new system. Knowledge of flowcharts, computer algorithms, Gantt chart, and so on are necessary to plan a new system.

Resources. After preparing a plan, resources are needed to put the plan to work. Resources such as money, a computer system, working space, accountants, and software engineers are required. These resources will aid the design of the system.

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System design. The fourth stage mentioned here is the actual design of the system. Several codes will be imputed in a computer language. Here the system developer implements all areas of the planning phase.

System testing. A small group of users will be contacted to test the product. Any mistakes in the user interface, bugs, coding errors, and more are corrected. This process is continued till the product is fit for use. 100 percent fitness is not necessary for this stage.

Product Launch. After several testing, the final product will be made available. The aim is to make the product usable. Although the system is fully developed, it is not perfect. From time to time, the developer will evaluate the product to discover areas of improvement. This will lead to product refinement. To ensure users get the latest refinement, system updates are done regularly.

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Persons involved in System Development

System professionals. This includes system developers, system analysts, database designers, and programmers who design the system to its usable form or a new information system.

End Users. The people that use the AIS. This includes managers and operation staff. Operation employees work with the system daily. They input data into the information system. Next, these data are converted to reports which are used by managers to make decisions.

Stakeholders. There are internal and external stakeholders. These sets of people do not use the system directly. They only have a certain interest in the system. Tax authorities, regulators, internal and external auditors, clients/customers are examples of stakeholders.


In final words, system development is a process of establishing a new accounting information system. Developing a system passes through several stages. Once it is launched, there is a need for regular maintenance. This maintenance comes in the form of updates to the system. In addition, developing a system involved the use of developers, designers, and programmers. When the system is ready, thereafter, it is made available to the users.