Accounting Information System

An accounting information system (AIS) is the system of records a business keeps to maintain its accounting system. This includes the purchase, sales, and other financial processes of the business. The purpose of an AIS is to accumulate data and provide decision makers (investors, creditors, and managers) with information to make decision While this was previously a paper-based process, most modern businesses now use accounting software such as UBS, MYOB etc. Information System personnel need basic, if not vast, knowledge of database management and programming language such as C, C++, JAVA and SQL as all software is basically built from platform or database. In an Electronic Financial Accounting system, the steps in the accounting cycle are dependent upon the system itself, which in turn are developed by programmers. For example, some systems allow direct journal posting to the various ledgers and others do not.

Accounting Information Systems provide efficient delivery of information needed to perform necessary accounting work and to assist in delivery of accurate and informative data to users, especially those who are not familiar with the accounting and financial reporting areas itself. Accounting Information Systems cover all business functions from backbone accounting transaction processing systems to sophisticated financial management planning and processing systems.

1.Financial reporting: It starts at the operational levels of the organization, where the transaction processing systems capture important business events such as normal production, purchasing, and selling activities. These events (transactions) are classified and summarized for internal decision making and for external financial reporting

2.Cost