What is the accounting information system?

The accounting information system is a system of records, generally computer-based, that combines accounting principles and concepts with the benefits of an information system and is used to analyze and record business transactions in order to prepare financial statements and provide data. accountants to their users. . Some accounting information systems are still manual, that is, accounting records are made with pen, paper and manual entries in the accounting books.

How are these systems used?
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 develop and implement the accounting information system, so that it automatically obtains information from other sources that already exist. are in use by the company. In addition, systems can be configured to present certain functions that are important to the business and eliminate minor functions for the business. Information can be entered automatically or manually into a business accounting information system at any rate and as often as required.

What are the benefits of using the accounting information system?
Companies use accounting information systems to make their accounting activities easier, faster and more accurate, since within the system accounting records are analyzed and financial statements are prepared, saving time for employees and avoiding errors. Since many accounting information systems are equipped with error reduction mechanisms and collect transaction information electronically and automatically, data entry and computational errors are rare. Also, as mentioned above, since such systems are often auto-populated with transaction information, many accounting processes are less cumbersome and time-consuming when using such a system.

Of course, the implementation of such a system requires investment and time for implementation, however, the future benefits are much greater than the expenses incurred. In addition, to consider whether the company needs an accounting information system and what type of system is required, a thorough analysis of the business and accounting processes must be performed to determine the precise requirements.