IAN FRANCIS L.
DELOS SANTOS
ACCOUNTING
INFORMATION
SYSTEM
INTRODUCTION TO AIS
➔ a system that a business uses to collect,
Accounting
store, manage, process, retrieve, and
report its financial data.
information ➔ tracks all accounting and business
activity for a company.
System ➔ simplifies the process of reporting
information to people outside of the
organization, when necessary.
REFERENCE:INVESTOPEDIA.COM
For example, management can establish sales goals for which staff can then order the
appropriate amount of inventory. The inventory order notifies the accounting department
of a new payable. When sales are made in a business, the people and departments
involved in the sales process could include the following:
1. Salespeople enter the customer orders into the AIS.
2. Accounting bills or sends an invoice to the customer.
3. The warehouse assembles the order.
4. The shipping department sends the order out to the customer.
5. The accounting department gets notified of a new accounts receivable, which is an
IOU from the customer that's typically paid within 30, 60, or 90 days.
6. The customer service department tracks the order and customer shipments.
7. Management uses AIS to create sales reports and perform cost analysis, which can
include inventory, shipping, and manufacturing costs.
Accounting ➔ It generally consist of six primary
information
components: people, procedures and
instructions, data, software, information
System
technology infrastructure, and internal
controls.
REFERENCE:INVESTOPEDIA.COM
COMPONENTS OF AIS
1. PEOPLE
- Calles the system users.
- Professionals who may need to use an organization's AIS include:
● Accountants
● Consultants
● Business analysts
● Managers
● Chief financial officers
● Auditors
REFERENCE:INVESTOPEDIA.COM
COMPONENTS OF AIS
2. PROCEDURES AND INSTRUCTION
- relate to the methods it uses to collect, store, retrieve, process, and
report data.
- These methods are both manual and automated.
- The data can come from internal sources (e.g., employees) and
external sources (e.g., customers' online orders).
REFERENCE:INVESTOPEDIA.COM
COMPONENTS OF AIS
3. DATA
● An AIS must have a database structure to store information.
*Structured query language - a programming language for storing and processing
information in a relational database.
● Must have a various input screens and output formats in order to meet the needs
of different users and various types of information.
● The data contained in an AIS is all of the financial information pertinent to the
organization's business practices.
● In addition, any business data that impacts the company's finances should go
into an AIS.
REFERENCE:INVESTOPEDIA.COM
COMPONENTS OF AIS
3. DATA
Types of Data
The type of data included in an AIS depends on the nature of the business, but it may
consist of the following:
● Check registers
● Sales orders ● General ledger
● Customer billing statements ● Inventory data
● Sales analysis reports ● Payroll information
● Purchase requisitions ● Timekeeping
● Vendor invoices ● Tax information
REFERENCE:INVESTOPEDIA.COM
COMPONENTS OF AIS
3. DATA
USE OF DATA
- Preparation of Financial Statements and other reports.
- Data in AIS system can be used for decision making purposes
★ However, for the data to be useful, it should be
complete, understandable, reliable, and verifiable.
REFERENCE:INVESTOPEDIA.COM
COMPONENTS OF AIS
4. SOFTWARE
- relates to the computer programs used to store, retrieve, process, and
analyze the company's financial data.
Small to Mid-Sized Businesses Mid-Sized to Large Businesses
● Intuit's Quickbooks ● Microsoft's Dynamics GP
● Sage's Sage 50 Accounting ● Sage Group's MAS 90 or MAS 200
● SAP's Business One ● Sage. "Sage ERP MAS."
● Xero ● Oracle's PeopleSoft
● Epicor Financial Management
REFERENCE:INVESTOPEDIA.COM
COMPONENTS OF AIS
5. IT INFRASTRUCTURE
- It consist of hardwares that is used to operate accounting information
system.
- Computers
- Routers
- Mobile devices
- Storage media
- Servers
- A back-up power
- Printers
supply
- Surge protectors
REFERENCE:INVESTOPEDIA.COM
COMPONENTS OF AIS
6. INTERNAL CONTROLS
- Controls in AIS pertains to those that protects the data encoded in the
system, prevent unauthorized access and duplication of entries, so
that the output from the system are reliable and fairly stated.
REFERENCE:INVESTOPEDIA.COM
- The practice of Accounting
information system actually
HISTORY of AIS started even before the use of
computers.
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