Question

• What is the difference between accounting information system (AIS) ans management information system (MIS)?

• What is the difference between financial transactions and non-financial transactions?

Answer 1

Before understanding the difference between AIS and MIS first of all we should know about the them.
AIS is an accounting information system and.
MIS is a management information system.

Differences :

• AIS (i.e accounting information system) is an automated system used by an organisation to manage the accounting of an organisation whereas MIS (i.e management information system) is used to provide the efficiency and effectiveness to the management.
• In case of AIS, financial data of the organisation is used where as in case of MIS non-financial data of the organisation is used.
• Both of the information system (i.e AIS and MIS) are used by the organisation to help in decision-makings, which in term also increases the efficiency and effectiveness of the organisation.
• AIS keeps all the data records such as sales, purchase and other financial transactions whereas MIS evaluate such data records and provides plans for future operations.
• AIS is considered to be a limited concept whereas MIS works on a much broader concept.

Differences between financial transactions and non financial transactions :

• All the data which can be measured in monetary terms are considered to be financial transactions whereas non financial transactions cannot be measured in monetary terms.
• Financial data/transactions are income or expenses of an organisation which are compulsory to be recorded whereas non financial transactions are not compulsory required to be recorded but are such costs occur due to such carrying out of business.
• Financial transactions provide provides information about profits or losses which are actually earned whereas non financial transactions are intangible benefits earned by financial transactions.
• Examples of financial transactions are costs, various other expenses, sales revenues etc, whereas non financial transactions are relationship with customers, suppliers/vendors. social responsibility, environmental impact etc.