What is Accounting Information System?

Accounting information system is a system of records, usually computer based, which combines accounting principles and concepts with the benefits of an information system and which is broken-down to analyze and portray business transactions for the purpose to prepare financial statements and provide accounting data to its users. Some accounting information systems are tranquil manual, i.e. accounting records are made with a pen, paper and manual entries into accounting books.



How are Such Systems feeble?
These systems can be customized to meet the needs of a business. For example, information technology professionals responsible for business processes and information technology professionals responsible for the accounting information system can work together to originate and implement such a system so that it automatically gets information from other sources already in exhaust by the business. Also, the systems can be position up to feature distinct functions that are famous to the business and eliminate functions minor to the business.  Information can be automatically fed, or manually fed into a business accounting information system at whatever slither and however often it is notable.



What are the Benefits of Using Accounting Information System?
Businesses utilize accounting information systems to accomplish their accounting activities easier, quicker, and more correct, since accounting records are analyzed and financial statements are prepared within the system, which allows to genuine time of employees and avoid mistakes.  Since many accounting information systems are equipped with error-reducing mechanisms and get information regarding transactions electronically and automatically, data entry and computing errors are rare. Also, as mentioned above, since such systems are often automatically populated with transaction information, many accounting processes are less cumbersome and time-consuming when using such system.



Of course implementation of such system requires investment and time to be spent on the implementation, however future benefits are considerable higher that the expenses incurred. Also to assume whether business needs accounting information system and what kind of system is required thorough analysis of business and accounting processes has to be made to settle accurate requirements.