Accrual-Based Accounting Information System with Cost Control Approach

Abstract

The rapid development of information technology has encouraged organizations to adopt Accounting Information Systems (AIS) to improve the accuracy and timeliness of financial information for managerial decision-making. However, many organizations still rely on cash-based or semi-manual accounting practices that limit their ability to monitor costs effectively and reflect financial performance accurately. This condition motivates the need for an accrual-based AIS that not only supports proper revenue and expense recognition but also integrates cost control mechanisms. This research proposes and implements an accrual-based Accounting Information System with a cost control approach designed to support transaction recording, cost classification, and managerial evaluation. The main contribution of this study lies in integrating accrual accounting principles with systematic cost control features, including cost center allocation, budget versus actual analysis, and managerial dashboards within a single system. The system is evaluated through functional testing and transaction simulations to assess accuracy, consistency, and reliability of accounting processes and cost reports. The evaluation results indicate that the system successfully maintains accounting balance, generates accurate accrual-based financial statements, and provides meaningful cost control information to support managerial decision-making. As future work, the system can be enhanced by incorporating advanced cost variance analysis, predictive cost forecasting, and the use of real operational data to further improve its analytical capability and applicability in real-world organizational environments.