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Accounting Information System (AIS)

Accounting Information System (AIS)

What is an Accounting Information System (AIS)?

An accounting data system (AIS) includes the collection, storage, and processing of financial and accounting data utilized by internal users to report data to [investors](/financial backer), creditors, and tax specialists. It is generally a PC based method for tracking accounting activity related to data technology resources. An AIS joins traditional accounting practices, like the utilization of Generally Accepted Accounting Principles (GAAP), with modern data technology resources.

How an Accounting Information Systems (AIS) is Used

An accounting data system contains different components important in the accounting cycle. Albeit the data contained in a system differs among industries and business measures, a common AIS incorporates data connecting with revenue, expenses, customer data, employee data, and tax data. Specific data incorporates sales orders and analysis reports, purchase demands, invoices, check registers, inventory, payroll, ledger, trial balance, and financial statement data.

An accounting data system must have a database structure to store data. This database structure is regularly modified with question language that takes into consideration table and data manipulation. An AIS has various fields to enter data as well as to alter recently stored data. What's more, accounting data systems are much of the time exceptionally secured platforms with deterrent measures taken against infections, programmers, and other outer sources endeavoring to collect data. Cybersecurity is progressively important as an ever increasing number of companies store their data electronically.

The different results of an accounting data system represent the adaptability of its data manipulation capacities. An AIS produces reports including accounts receivable aging reports in view of customer data, depreciation plans for fixed assets, and trial balances for financial reporting. Customer records, taxation computations, and inventory levels may likewise be imitated. Nonetheless, correspondences, updates, or introductions are excluded from the AIS in light of the fact that these things are not straightforwardly connected with a company's financial reporting or bookkeeping.

Benefits of Accounting Information Systems

Interdepartmental Interfacing

An accounting data system endeavors to interface across different departments. Inside the system, the sales department can transfer the sales budget. This data is utilized by the inventory management team to conduct inventory counts and purchase materials. Upon the purchase of inventory, the system can tell the accounts payable department of the new invoice. An AIS can likewise share data about another order with the goal that the manufacturing, transportation, and customer service departments are aware of the sale.

Internal Controls

A fundamental part of accounting data systems connects with internal controls. Policies and procedures can be set inside the system to guarantee that sensitive customer, vendor, and business data is kept up with inside a company. Using physical access endorsements, login requirements, access logs, approvals, and segregation of duties, users can be limited to just the significant data important to perform their business function.