Definition of Accounting Information System
An accounting information system (AIS) refers to the structure used by any company in collecting financial information. They are primarily used to collect, store, manage, process and report financial data. These reports were used by accountants, consultants, business analysts, managers and chief financial officers (CFOs)
Various specially trained accountants are deployed for working in detail with the AIS. They ensure a high amount of accuracy in making the financial transactions of the company.
There are various primary components of a particular accounting system. Some of them include people involved, procedures that follow, the data which are required and used.
Personnel in accounting
The people who are in the Accounting Information System are primarily system users. The people working in this department are primarily accountants, consultants, business analysts. They also include managers, chief managers, and auditors.
The design in Accounting Information System is essential. A proper design of the AIS will ensure the perfect authorization of the person who can access the system. It also eases getting information from the people who are outside the organization.
Instructions that follow
The next important thing that comes to an accounting information system is the methods adopted for doing so. These methods primarily use collecting, storing, evaluation and processing the data. The techniques which are adapted here are manual and automatic. To get these data, the data are retrieved from various confidential and public sources.
The procedure that follows for a particular accounting system is coded in AIS software.
To save the information, the AIS has a database structure. The database structure, which is used in AIS is SQL (Structured Query language). It also requires various input screens for different systems that are used. The type of data in an AIS includes the following:
- Selling of orders
- Statements of customer billing
- Analysis and evaluation of sales reports.
- Requirements for purchase
- Invoices of the vendors
- Checking and evaluation of registers
- To find out the inventory data.
- Generation of payroll information
- Keeping the tax information
The software commonly used for storing the AIS information is SAP’s Business One. If the sector is of a mid business and large business uses software like Microsoft Dynamics GP, Sage Group’s MAS 90 or MAS 200, Oracle’s Peoplesoft or Epicor Financial Management. These programs are primarily used to store, analyze the results which are obtained from the financial data.