Accounting information system presentation
This presentation provides an overview of accounting information systems. It defines an accounting information system as a subsystem of management information systems that collects and processes transaction data and communicates financial information to decision makers. It notes that an accounting information system consists of people, procedures, data, software, and information technology. It also distinguishes between computerized accounting systems used by large businesses and manual systems used by small businesses. Finally, it outlines the basic functions of an accounting information system, including collecting and storing data, processing it into useful information, providing controls to safeguard assets, and generating financial statements and managerial reports.
Accounting information system presentation
- 1. Presentation on Accounting Information System Principles of Accounting (ACC-101)
- 2. By S. M. Maruf Siddiqe (B1405139)
- 3. Accounting Information System • Is a subsystem of management information system • Collects and processes transaction data • Communicates financial information to decision makers • Includes each of the steps in the accounting cycle
- 4. An accounting information system (AIS) consists of: • People • Procedures • Data • Software • Information technology
- 6. Basic Concepts of AIS Computerized- • Large Business organizations use this • Works are done with the help of software • Chances of mistakes are less Manual- • Generally used in small organizations • Works are done manually • More chances of doing mistakes
- 7. Basic functions of AIS • It collects and stores data about activities and transactions • It processes data into information that is useful for making decisions • It provides adequate controls to safeguard the organization’s assets
- 8. Basic Functions The data processing cycle consist of four steps- 1) Data input 2) Data storage 3) Data processing 4) Information output The information an AIS provides falls into two main categories- 1) Financial Statements 2) Managerial Reports
- 9. Basic Functions The third function of an AIS is to provide adequate internal controls to accomplish three basic objectives- 1)Ensure that the information is reliable. 2)Ensure that business activities are performed efficiently. 3)Safeguard organizational assets.
- 10. Subsystems in the AIS
- 11. Factors influencing design of the AIS
- 12. The Accounting Process The accounting process starts when an economic event is recognized by AIS, which records this event as an accounting transaction
- 13. Benefits of AIS Businesses use accounting information systems to make their accounting activities easier, quicker, and more accurate Allows to safe time of employees and avoid mistakes Implementation of such system requires investment and time to be spent on the implementation, however future benefits are much higher that the expenses incurred. Helps the company forecast sales, profits, loss Make it easier to compile financial data for use in taxes, payroll, and other bookkeeping requirements
- 14. THANK YOU!