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Accounting Information System

An accounting information system (AIS) is used by businesses to collect, store, manage, and report financial data for accountants, managers, auditors, and other stakeholders. An AIS consists of people, procedures, data, software, technology infrastructure, and internal controls. It collects both internal and external data, such as sales orders, invoices, payroll, and inventory. This financial data is stored and can be used to generate accounting reports, analyze business performance, and support decision-making. Maintaining accurate, complete, and relevant financial data in an AIS is important for a business's record-keeping, reporting, auditing, and management needs.

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Jansen Alonzo Bordey
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50 views2 pages

Accounting Information System

An accounting information system (AIS) is used by businesses to collect, store, manage, and report financial data for accountants, managers, auditors, and other stakeholders. An AIS consists of people, procedures, data, software, technology infrastructure, and internal controls. It collects both internal and external data, such as sales orders, invoices, payroll, and inventory. This financial data is stored and can be used to generate accounting reports, analyze business performance, and support decision-making. Maintaining accurate, complete, and relevant financial data in an AIS is important for a business's record-keeping, reporting, auditing, and management needs.

Uploaded by

Jansen Alonzo Bordey
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Bordey, Jansen A.

BSMA 2-2

What are the capabilities of Accounting Information Systems? What kind of


decisions AIS could improve and types of data should be collected?

An accounting information system (AIS) is a structure that a business uses to collect,


store, manage, process, retrieve and report its financial data so it can be used by
accountants, consultants, business analysts, managers, chief financial officers (CFOs),
auditors, regulators, and tax agencies.
Specially trained accountants work in-depth with AIS to ensure the highest level of
accuracy in a company's financial transactions and record-keeping, as well as make
financial data easily available to those who legitimately need access to it—all while
keeping data intact and secure.
Accounting information systems generally consist of six primary components:
people, procedures and instructions, data, software, information technology
infrastructure, and internal controls.
The procedure and instructions of an AIS are the methods it uses for collecting,
storing, retrieving and processing data. These methods are both manual and
automated. The data can come from both internal sources (e.g., employees) and
external sources (e.g., customers' online orders). Procedures and instructions will be
coded into AIS software—they should also be "coded" into employees through
documentation and training. To be effective, procedures and instructions must be
followed consistently.
To store information, an AIS must have a database structure such as structured
query language (SQL), a computer language commonly used for databases. The AIS
will also need various input screens for the different types of system users and data
entry, as well as different output formats to meet the needs of different users and
various types of information.
The data contained in an AIS is all the financial information pertinent to the
organization's business practices. Any business data that impact the company's
finances should go into an AIS.
The type of data included in an AIS will depend on the nature of the business, but it
may consist of sales orders, customer billing statements, sales analysis reports,
purchase requisitions, vendor invoices, check registers, general ledger, inventory data,
payroll information, timekeeping, tax information.
This data can then be used to prepare accounting statements and reports, such as
accounts receivable aging, depreciation/amortization schedules, trial balance, profit and
loss, and so on. Having all this data in one place—in the AIS—facilitates a business's
record-keeping, reporting, analysis, auditing, and decision-making activities. For the
data to be useful, it must be complete, correct and relevant.
On the other hand, examples of data that would not go into an AIS include memos,
correspondence, presentations, and manuals. These documents might have a
tangential relationship to the company's finances, but, excluding the standard footnotes,
they are not really part of the company's financial record-keeping.

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