The Basic Components of Accounting Information SystemĪn Accounting Information System (AIS) operates upon a foundation of five basic principles.
Examples of these are accountants, managers, analysts, consultants, Chief Financial Officers (CFOs), regulators, and tax agencies too. Therefore, they can be used by a wide range of professionals. Accounting Information Systems are highly versatile. It is also capable of revealing the overall state of an enterprise by assessing its assets, liabilities and considering the owners' equity. By using customized, intelligent, built-in formulas, the accounting information system is capable of displaying the profitability of a business for a specific period of operation.
This is a software tool that can be used to identify, record, organize, qualify, interpret, present and store accounting information. Here is more on this What is Accounting Information System Prior to investing in an Accounting Information System, it is important to know its purpose, components, and capability. It collects, stores, processes, and presents accounting information so that it can be utilized by the decision-makers in a business.
This system leverages Information Technology (IT) tools for this purpose. This is a computerized method of recording and maintaining the accounting processes of a business. This can be accomplished by an Accounting Information System (AIS). Modern companies need current, rapid, high-quality information about their internal conditions for the purpose of making strategic decisions.