Question

Read published articles and recent professional reports (PWC, KPMG, E&Y, Deloitte, and McKinsey & Company)

1- What is the meaning of AIS.

2- What are the benefits of AIS.

with explaining Please, thank you

Answer 1

Answer 1

An accounting information system (AIS) involves the collection, storage, and processing of financial and accounting data used by internal users to report information to investors, creditors, and tax authorities.An accounting information system contains various elements important in the accounting cycle. Although the information contained in a system varies among industries and business sizes, a typical AIS includes data relating to revenue, expenses, customer information, employee information, and tax information. Specific data includes sales orders and analysis reports, purchase requisitions, invoices, check registers, inventory, payroll, ledger, trial balance, and financial statement information.

it is a system to collect and store all information related to financial transactions and events in such a way that they can be retrieved for decision making by the internal management, accounts, CFOs, auditors, etc. AIS may be a very simple ledger to various accounting, costing, financial reports like Statement of Profit and Loss, Balance Sheet, etc.To perform various functions as stated in the definition, AIS follows predefined steps, procedures. SO as to ensure consistency, this is one of the most basic need of an AIS. An action may be performed by AIS either with manual intervention or automatically. This action needs to be instructed to the person processing data or coded in the system in case of automatic systems.

Answer 2

A) Speed

The main benefit of information systems in accounting is the speed of processing tasks. Data is entered once and can then be used and reused in compiling reports by literally pressing a button. If a transaction needs correction, it is easily done, with reports generated afterward at speeds never possible with manual accounting systems.

B) Classification

When data is entered in an accounting system, manual or computerized, an accountant needs to classify it in a detailed fashion. For example, a transaction could be a sales revenue or an interest revenue. Using information systems, this classification process is easily accomplished with a drop-down menu from which you choose the proper category. You can also quickly generate reports involving classifications. With a manual system, this process takes much more time.

C) Safety

Once data is entered into a computer, it is safe. The chances of losing data are remote, especially when you perform regular system backups. In manual systems, paper pads can be lost or damaged more easily. You can save data on the Internet, where it will not only be accessible anytime you need it but will also still be secure even if your computer is lost or damaged.

D) Efficiency

Computerized financial information systems are faster and more efficient in processing data. The use of hardware such as scanners automatically generates accounting information without much ado. The information is available almost immediately. The cost of hardware such as computers is low and the availability of cheaper and user-friendly accounting software makes accounting information systems affordable. Computerized financial systems enable users to access it promptly by the click of a mouse. Unlike manual, which by the way is still very much in existence as some companies want to keep both electronic and manual accounting information systems, the user does not have to go through a pile of paper work in order to locate the information he needs.

E) Cost Effectiveness

Accounting information system makes the maintenance of a bloated financial department irrelevant. The software does most of the work that would otherwise require several employees. The accounting software can journal and prepare documents such as the trial balance. Journals and ledgers are recorded in the computer data bases. There is also software that can perform functions such as billing budgeting and preparing payroll. Accounting information systems help cuts the payroll for accounting staff substantially.