The objective of accounting is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to wide range of users in making economic account system.

The accounting information system is an integral part of any business. It should provide users with timely information to aid in decision making. Accounting information systems are helpful with preparing financial statements, taxes, reconciling bank accounts and generating reports.

1. Timely Information
Your accounting information system should provide you and other users with timely information. This information helps users and business owners with strategic planning, budgets and other valuable sales information. Payroll, bank reconciliations and creating spreadsheets are some of the tasks your accounting information system should be capable of handling.

2. Easy to Use
Raw data such as vendor names, sales dates and amounts and purchases are entered into the system. Point of sale devices offer another means for data to be input directly into your accounting information system. That's pretty much the extent of the labor involved with your accounting information system. When it comes to accounting information systems, the simpler the better. Once the data is input, the system processes any calculations, reports, and reconciliations. For popular accounting information systems such as Quickbooks, reconciling bank and credit accounts is as simple as clicking your mouse to match accounts with one another.

3. Internal Controls
Your accounting information system makes it easier for you to establish internal controls. These internal controls include various inventory decisions resulting from sales data. A good accounting information system helps detect fraud, theft and other mismanagement.

4. Decision Making
Data recorded and processed in your accounting information system yields reports that aid managers and owners in the decision making process. These business decisions include how much inventory should be carried and how much money should be spent. Most accounting information systems can yield statistics that indicate performance of products or services. This information can further be analyzed to make decisions regarding sales, cost of goods sold and efficiency.

5. External Financial Reporting
One of the most important characteristics of your accounting information system is its ability to produce information that helps you generate year-ending financial statements. From your accounting information system you should be able to create your company's balance sheet, income statement, shareholder or owner's equity and statement of cash flows. Many accounting information systems have the ability to create your financial statements within the software itself.

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Accounting Information Systems (Accounting information systems s) combine the study and practice of accounting with the design, implementation, and monitoring of information systems. Such systems use modern information technology resources together with traditional accounting controls and methods to provide users the financial information necessary to manage their organizations.

Accounting information systems TECHNOLOGY

Input The input devices commonly associated with Accounting information systems include: standard personal computers or workstations running applications; scanning devices for standardized data entry; electronic communication devices for electronic data interchange (EDI) and e-commerce. In addition, many financial systems come ‘‘Web-enabled’’ to allow devices to connect to the World Wide Web.

Process Basic processing is achieved through computer systems ranging from individual personal computers to large-scale enterprise servers. However, conceptually, the underlying processing model is still the ‘‘double-entry’’ accounting system initially introduced in the fifteenth century.

Output Output devices used include computer displays, impact and nonimpact printers, and electronic communication devices for EDI and e-commerce. The output content may encompass almost any type of financial reports from budgets and tax reports to multinational financial statements.


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