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ACCOUNTING INFORMATION SYSTEM
BASIC CONCEPTS
Accounting Information System which is a subsystem of the Financial Information System refers to the orderly arrangement of procedures, personnel, records, equipment and devices utilized for a logical and orderly gathering, processing and reporting of financial and other information essential to the efficient conduct and evaluation of the activities of a business enterprise.
An accounting information system (AIS) is the information subsystem within an organization that accumulates information from the entity’s various subsystems and communicates it to the organization’s information processing subsystem. The AIS today is an enterprise-wide information system focused on business process. It is the combination of procedures, personnel, records, equipment and devices that a business uses to meet its need for financial data. The word information in the title indicates that a company can get more reports, such as sales by product, and cash-flow projections provide valuable information for their business decisions.
Accounting information system evolves over time and becomes more formalized as a firm grows and becomes more complex. Information technology must be compatible and support the other components of an accounting information system.
OBJECTIVE OF AN ACCOUNTING INFORMATION SYSTEM
The basic objective of an accounting system is to collect, process and provide financial information needed by management and other interested parties in conducting and evaluating the business activities. The reports containing the financial information should be accurate, timely and prepared at the lowest cost possible.
ESSENTIAL ELEMENTS OF AN ACCOUNTING INFORMATION SYSTEM
The basic elements of an accounting system are:
1. Procedures or a set of interrelated activities involving the originating processing and reporting of financial and other data. 2. Statement of accounting policies and standards. 3.
BASIC CONCEPTS
Accounting Information System which is a subsystem of the Financial Information System refers to the orderly arrangement of procedures, personnel, records, equipment and devices utilized for a logical and orderly gathering, processing and reporting of financial and other information essential to the efficient conduct and evaluation of the activities of a business enterprise.
An accounting information system (AIS) is the information subsystem within an organization that accumulates information from the entity’s various subsystems and communicates it to the organization’s information processing subsystem. The AIS today is an enterprise-wide information system focused on business process. It is the combination of procedures, personnel, records, equipment and devices that a business uses to meet its need for financial data. The word information in the title indicates that a company can get more reports, such as sales by product, and cash-flow projections provide valuable information for their business decisions.
Accounting information system evolves over time and becomes more formalized as a firm grows and becomes more complex. Information technology must be compatible and support the other components of an accounting information system.
OBJECTIVE OF AN ACCOUNTING INFORMATION SYSTEM
The basic objective of an accounting system is to collect, process and provide financial information needed by management and other interested parties in conducting and evaluating the business activities. The reports containing the financial information should be accurate, timely and prepared at the lowest cost possible.
ESSENTIAL ELEMENTS OF AN ACCOUNTING INFORMATION SYSTEM
The basic elements of an accounting system are:
1. Procedures or a set of interrelated activities involving the originating processing and reporting of financial and other data. 2. Statement of accounting policies and standards. 3.