Using an accounting information system even if for starters or small and medium scale enterprises can be beneficial. It would help from the day-to-day transactions up to the financial reporting required by the management as well as government bodies.
Before technology, people only relied on manual accounting using mounds of papers for the general ledger. Information is encoded and passed to each department, ensuring that the information is safe, and the process abides by the accounting standards. Now, the accounting information system is mostly automated.
But what really is an “Accounting Information System”? What is the use for it? Who uses it?
An Accounting Information System is a tool or a structure that facilitates the collection, storage, processing, and reporting of financial data used to make informed decisions. Managers, accountants, auditors, chief financial officers, consultants, business analysts, and regulators are the primary users of the system. Its primary purpose is to have an integrated accounting system that supplies information for making decisions while controls and protections are in place. There are six major components of an AIS, namely, people, procedures and instructions, IT infrastructure, AIS software, AIS data, and internal controls. Together, these components play roles to ensure that the system is effective and efficient.
From manual accounting, the system became available for computer-based accounting. As it further evolved, now we have cloud-based accounting. Cloud-based accounting has helped AIS improve the integration of modules likes sales, purchases to management reporting. Better internal controls are also used, following the international and local accounting standards and even being protected by the Data Privacy Law.
The AccuBooks Accounting System and ERP is a great example to use for an AIS. It offers multiple features like integrated modules for seamless accounting transactions, audit trails, and approval management systems as part of internal controls, budgets and reports dashboard for management decision-making, and financial reports generation for easy government compliance and reporting. All readily available in the cloud! It answers all your business needs. Do you want to learn more? Visit our website!