Information Processing system is a set of formal procedure by which data are collected, processed into information and distributed to users. Financial accounting collects financial data from different areas of the company.

1. Financial Statement
As
Information Processing System
by,
SANJU RAVEENDRAN
S3 MBA
MACFAST COLLEGE

2. Information Processing system is a set of
formal procedure by which data are collected,
processed into information and distributed to users.
Financial accounting collects financial data from
different areas of the company.
With the rapid development and globalization
of financial markets, financial information processing
system has become a hot research area due to its
immense practical applications. Such application
includes stock markets analysis, exchange rate
forecasting, inventory management, Bank loan
management etc. financial information processing

3. The major objectives of information processing
system :
1. Proper management of the business through
the exact processing of financial information.
2. To facilitate decision making.
3. To support the firms day-to-day operations.

4. Collecting data INPUT
about business event
Business events
analysis
Recording in the PROCESS
business book
Preparing the trial
balance
Preparing the
financial statement OUTPUT
INFORMATION USERS

5. ACCOUNTING INFORMATION SYSTEMS (AIS)
An accounting information system(AIS) is a
system of collection, storage and processing of financial
and accounting data that is used for decision making. It
tracks accounting activities and gives statistical reports
which can be used internally by management or externally
by other interested parties including investors, creditors
and tax authorities.
Accounting information system designs a data
processing systems using software ,it can also be done
manually. The computerized system make accounting job
easier by the use of software which can compile
financial, tax data , it can also perform other book
keeping function.

6. The advantage of using computerized AIS are:
1. Instant access to accounting information.
2. Easy documentation production.
3. Staff motivation.
4. Ability for taxes to be computed automatically.

7. General model for AIS
The elements of the general model of an information
system are –
1. End user
2. Data sources
3. Data collection
4. Data processing
5. Database management
6. Information generation and feedback

8. • End users
End users are of two groups internal and external.
• Data sources
Data sources are financial transaction that enter the
information system from internal and external sources.
• Data collection
Data collection is the first operational stage in the
information system. The objective is to ensure that all data
entering the system are valid, complete, and free from
material errors.
• Data processing
Once collected data usually require processing to
produce information. The tasks involved in the data
processing stages from simple to complex.
Eg-mathematical, algorithms, statistical techniques for sales
forecasting and posting and summarizing for accounting
application.

9. •Data Base Management
The organization’s database is its physical repository
for financial and non financial data. It can be a filing cabinet
or a computer disk.
•Database Management Tasks
This involves three fundamental tasks :
storage, retrieval and deletion