Accounting information systems provide timely and accurate financial reports for management decision making and external parties like creditors and tax authorities. They combine accounting principles with information systems to analyze and record business transactions and prepare financial statements. While some accounting systems are still manual, computer-based accounting information systems make the accounting process easier, quicker, and more accurate. They allow businesses to save time and avoid mistakes while helping forecast sales, profits, and losses.

1. Accounting Information System

2. MeaningA subset of management information system

3. Accounting information system is a system of records, usually computer based, which combines accounting principles and concepts with the benefits of an information system.

4. It is used to analyze and record business transactions for the purpose to prepare financial statements and provide accounting data to its users. Accounting information systems are still manual, i.e. accounting records are made with a pen, paper and manual entries into accounting books.

5. AIS is responsible for providing timely and accurate financial and statistical reports for internal management decision making, and for external parties such as creditors, investors, and regulatory and taxation authorities.Benefits of AISBusinesses use accounting information systems to make their accounting activities easier, quicker, and more accurate

6. Allows to safe time of employees and avoid mistakes

7. Implementation of such system requires investment and time to be spent on the implementation, however future benefits are much higher that the expenses incurred.

8. Helps the company forecast sales, profits, loss

9. Make it easier to compile financial data for use in taxes, payroll, and other bookkeeping requirementsStepsRecording is the first step in these systems that are used by companies including pertinent data such as expenses and profits that are very important to keep on file.

10. In the second phase, the information will be processed for use. When processed, it is filed in the areas where it is most important. These systems have various groupings or categories to maintain files until they need to be used in the future for whatever reasons.

11. The final step that is part of most software programs is the communication phase. This is the process of actually utilizing the records that have been recorded and processed. Common communications of this data will be used for payroll and tax purposes. The process of communication is probably the most important stage of accounting information systems because this is the point where results are known and records will be put to use.Thank You