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Chap 12-Accounting Information System (1)

The document provides an overview of Accounting Information Systems (AIS), highlighting their importance for modern companies in making strategic decisions through high-quality information. It details the functionalities of AIS, including transaction data processing, financial reporting, and the advantages of computerized systems over manual ones. Additionally, it discusses the flexibility, cost-effectiveness, and various software options available for implementing AIS in businesses.

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9 views

Chap 12-Accounting Information System (1)

The document provides an overview of Accounting Information Systems (AIS), highlighting their importance for modern companies in making strategic decisions through high-quality information. It details the functionalities of AIS, including transaction data processing, financial reporting, and the advantages of computerized systems over manual ones. Additionally, it discusses the flexibility, cost-effectiveness, and various software options available for implementing AIS in businesses.

Uploaded by

dmkeven012
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Chapter 12

Accounting Information Systems

S.MAGESHWARI,SGFS, AIMST UNIVERSITY


What is Accounting Information System(AIS) –
Basic Introduction

• Modern companies need current, rapid, high-quality


information about their internal conditions for the
purpose of making strategic decisions.

• can be accomplished by an Accounting


Information System (AIS).

• computerized method of recording and maintaining


the accounting processes of a business. This
system leverages Information Technology (IT) tools
for this purpose.
What is Accounting Information System

• a software tool that can be used to identify, record, organize,


qualify, interpret, present and store accounting information
.
• capable of displaying the profitability of a business for a specific
period of operation.

• capable of revealing the overall state of an enterprise by


assessing its assets, liabilities and considering the owners' equity.
Accounting Information Systems are highly versatile.

• can be used by a wide range of professionals. Examples of these


are accountants, managers, analysts, consultants, Chief Financial
Officers (CFOs), regulators, and tax agencies too.
Explain the basic concepts of an
accounting information system.

Accounting information system (AIS) collects and


processes transaction data and communicates financial
information to decision makers.

Includes:
 All steps in the accounting cycle.
 Documents that provide evidence of transactions.
 Manual or computerized accounting system.
Basic Concepts of AIS

Cost Effectiveness - Benefits


must outweigh the costs.

Useful
Output

Flexibility - The system should


be sufficiently flexible to meet
the resulting changes in the
demands made upon it.
Computerized Accounting Systems

 Software programs (functions include sales,


purchases, receivables, payables, cash receipts and
disbursements, and payroll).
 Generate financial statements.
 Advantages:
► Typically enter data only once.
► Many human errors are eliminated.
► More timely information.
Computerized Accounting Systems

 CHOOSING A SOFTWARE PACKAGE


 ENTRY-LEVEL SOFTWARE
► Easy data access and report preparation
► Audit trail
► Internal control
► Customization
► Network Compatibility
 ENTERPRISE RESOURCE
PLANNING SYSTEMS
Manual Accounting Systems

 Perform each step in the accounting cycle by hand.


 Satisfactory with a low volume of transactions.
 Must understand manual accounting systems to
understand computerized accounting systems.

LO 1
ACCOUNTING SOFTWARE

• EXAMPLE

SQL ACCOUNTING
 Software designed to provide
business purpose function to
the
company.
 Provide Fast and
Supreme
database.
 Support more than 1000
report
combination.
 For example, Excel, Word,
Low Cost to Apply
Easier to integrate with
company’s
existing system.
Able to communicate with other
system and software.
Large Database Storage
Real database storage over
100GB
Maintaining fast response time.
User Friendly and Flexible
Interface
Create the Sale Invoice by few
clicks on the screen.
General Custome Supplie
Ledger r r

Stock Purchases
Create and manage accounting records by project
or department.

General Create unlimited accounts and accounts groups


displayed in tree format.

ledGer

“Cash Book” – List down all the


Payment Voucher and Official
Receipt
of the company.
Track and Reconcile the company
business transaction.
Maintain Customer
Allows users to maintain Custom
company’s customers
easily. ers
The system will automatically
dispatch an official receipt
with
the payment.

Set the credit limit and


overdue limit for each
customers.
Allows users to match a
customer’s invoice
against
supplier’s bill .
Supplie
r
Create the supplier invoice
and track the payment.

Advance Credit Control –


credit limit and overdue
limit.

Match supplier’s invoice


against the customer’s
bill
St ock

Create a list of stoc


organizing the stock

Based on multiple
different
customers
prices…….
Record any transfe

Adjust the stock level by the


locations.
Record sales in a simple
way.
Create quotation for the
Estimate the
customers.
profit.

Sale
s
Assistant screen show the available stock
balance
and sales price history.
“Invoice” section – track the orders that not yet
billed.
Purchases
Assistant screen to show
the
stock balance and purchase
price history
“Purchase Order” – place
an order……system will
process it automatically.

“Goods Received” section –


help to keep the stock up to
date all the time.

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