The Design For Alignment Of Accounting Information System Planning And Business Planning Based On REA

A traditional accounting information system can't fulfill the demand of a modern information society, because of the inflexibility and limitations of a traditional accounting information system, and the lack of the alignment of a traditional accounting information system with the corporate strategy.To build an accounting information system which fulfills the modern demands must pursue the following three objectives: 1) the innovation of accounting model, 2) alignment of the accounting information system with the corporate strategy and combination of strategy management tools with the accounting information system, 3) human resource development.The development of a database model will help the accounting model innovation, which is the footstone to achieve the alignment of the system with the business planning. E-R mode, as one of a semantic model, can fulfill the demand of information by a corporate. Thus, The REA accounting mode built on E-R model can be used to build a modern corporate accounting information system. As accounting information system is part of corporate information system, the alignment of business planning and company information system planning will certainly help the alignment of business planning and accounting information system planning. In this paper, a REA model was used to achieve the alignment of business planning and accounting information system planning. The balance scored card (BSC) was applied to fulfill the requirements of the alignment. And this application also is the key to the alignment process.The principle and process for the alignment of accounting information system planning and business planning, base on REA model, were discussed. A case study was provided to illustrate how a tire distributor aligned the accounting information system planning with the business planning. Furthermore, this paper depicted the three different level (economic, business and information) events'REA diagrams, and integrated multi-individual REA diagrams into integrated one.