REA refers Resource, events and Agents. It is a model by which you can improve as well as re-engineer the accounting system. It was originated by accounting model that is why it is famous. It helps you to combine the resources, events and agents easily. It is very helpful for the business process of the company.
How does the REA model help a business?
Most of the business has some issues with the departments for the resources and events as well as agents that need to be fixed. The REA for accounting approach solves all the issues in the business for the sales, purchase and another department. There might be human resource and financing malfunctioning issues. This suggests the alternative models for the business.
Why is the REA popular model?
When it comes to teaching accounting information system or AIS, then REA is a common and vital chapter, which contains business practices. There are many companies, which have issues with the warehouse. The REA model shows how to remodel the current ERP system by implementing the updates in the ERP system.
How does the REA model increase the productivity?
The REA model provides the right tools by which the condition of the business can be improved. There are new implementations of the data models, which are extremely helpful for the process of thedata model. You will have the update on the following system.
- Goods and service as well as resources. It will help you to save money i.e. resources.
- The REA model is quite helpful for the business transaction and agreements that directly and indirectly affects the resources. It is very helpful to manage the events.
- It will provide efficient support for the human agencies and people that are also known as events.
- There is a new approach, which will replace the old business modelling.
The REA model also shows how to change and alter the market by altering the three important values in the system. Apart from that the REA model also reveals why the inadequate business process can be dangerous for the entire business. It also helps you to trace all the business transaction related to the resources and agents.
What are the benefits of accounting information system for business?
Advantages of using Accounting information system