Accounting Information System

Accounting education remains (AIS An accounting system development dodging(AIS) is a system of collection, storage and process of financial andaccounting data that is characterd bydecision makers. accounting information system (AIS) consists of quite a little Procedures Data Softw be Information technology infrastructure What important functions does the AIS perform in an organization? 1. It collects and stores data about activities and transactions. 2. It processes data into information that is useful for making decisions. 3.It provides adequate controls to safe-guard the organizations assets. Uses of (AIS) * Producing External Reports * go foring Routine Activities * purpose Support * Planning and Control * Implementing inborn Control Producing External Reports Businesses use (AIS) to buzz off special reports that follow a involve structure established by organizations such as (FASB). These reports embarrass financial statements, tax returns, etc financial backi ng Routine Activities Managers need an (AIS) for handling routine operating activities during the firms operating cycle.Computer systems excel at handling repetitive transaction by m whatsoever accounting software system support these routine functions. Decision Support Information is needed for nonroutine decision support at either levels of an organization. Some information are critical for planning, deciding, marketing functions. Planning and Control An information system is required for planning and control activities as well. Historical data arouse be extracted from the database and used to forecast fruit and cash flows. Planners can use data mining to reveal long-term trends and relationships.Implementing Internal Control Internal control includes the policies, procedures, and information system used to protect a companys assets from damage and to agree accurate financial data. It is mathematical to build controls into a computerized accounting information system to hel p stumble these goals. Benefits AIS * Speed The main social welfare of information systems in accounting is the speed of processing tasks. Data is entered erst and can then be used and reused in compiling reports by literally pressing a button.If a transaction inevitably correction, it is easily done, with reports generated afterward at speeds never possible with manual accounting systems. * Classification When data is entered in an accounting system, manual or computerized, an accountant needs to classify it in a detailed fashion. For example, a transaction could be a sales revenue or an intimacy revenue. Using information systems, this mixture process is easily accomplished with a drop-down menu from which you choose the proper(ip) category.You can also chop-chop generate reports involving classifications. With a manual system, this process takes much more time. * resort Once data is entered into a computer, it is safe. The chances of losing data are remote, especially wh en you perform regular system backups. In manual systems, paper pads can be lost or damaged more easily. You can fork over data on the Internet, where it leave not only be accessible anytime you need it but ordain also still be secure even if your computer is lost or damaged. One blemish of Accounting Information formationOne separate of Accounting Information System is that this system cannot identify any afterlife day loss or incorrectly transaction entry. As we know that computer is a machine, and it cannot do any activity itself. Therefore, computer cannot arrive at any advice or warning. However, accountants in business are capable to augur any future loss on the basis of their knowledge and experience. Due to this disadvantage it is important and advisable for small and mid-size businesses to have slightly accountants in their business on permanent basis to avoid future losses.Accounting Information SystemAccounting Information System (AIS Anaccounting information system(AIS) is a system of collection, storage and processing of financial andaccounting data that is used bydecision makers. accounting information system (AIS) consists of People Procedures Data Software Information technology infrastructure What important functions does the AIS perform in an organization? 1. It collects and stores data about activities and transactions. 2. It processes data into information that is useful for making decisions. 3.It provides adequate controls to safe-guard the organizations assets. Uses of (AIS) * Producing External Reports * accompaniment Routine Activities * Decision Support * Planning and Control * Implementing Internal Control Producing External Reports Businesses use (AIS) to produce special reports that follow a required structure established by organizations such as (FASB). These reports include financial statements, tax returns, etc Supporting Routine Activities Managers need an (AIS) for handling routine operating activities during the firms operating cycle.Computer systems excel at handling repetitive transaction by many accounting software support these routine functions. Decision Support Information is needed for nonroutine decision support at all levels of an organization. Some information are critical for planning, deciding, marketing functions. Planning and Control An information system is required for planning and control activities as well. Historical data can be extracted from the database and used to forecast growth and cash flows. Planners can use data mining to reveal long-term trends and relationships.Implementing Internal Control Internal control includes the policies, procedures, and information system used to protect a companys assets from loss and to maintain accurate financial data. It is possible to build controls into a computerized accounting information system to help reach these goals. Benefits AIS * Speed The main benefit of information systems in accounting is the speed of processing tasks. Data is entered once and can then be used and reused in compiling reports by literally pressing a button.If a transaction needs correction, it is easily done, with reports generated afterward at speeds never possible with manual accounting systems. * Classification When data is entered in an accounting system, manual or computerized, an accountant needs to classify it in a detailed fashion. For example, a transaction could be a sales revenue or an interest revenue. Using information systems, this classification process is easily accomplished with a drop-down menu from which you choose the proper category.You can also quickly generate reports involving classifications. With a manual system, this process takes much more time. * Safety Once data is entered into a computer, it is safe. The chances of losing data are remote, especially when you perform regular system backups. In manual systems, paper pads can be lost or damaged more easily. You can save data on the Internet, where it will not only be accessible anytime you need it but will also still be secure even if your computer is lost or damaged. One disadvantage of Accounting Information SystemOne disadvantage of Accounting Information System is that this system cannot identify any future loss or wrong transaction entry. As we know that computer is a machine, and it cannot do any activity itself. Therefore, computer cannot give any advice or warning. However, accountants in business are capable to estimate any future loss on the basis of their knowledge and experience. Due to this disadvantage it is important and wise for small and mid-size businesses to have some accountants in their business on permanent basis to avoid future losses.