Question

Explain the role of acconting information system in an organization

Answer 1

The basic functions of Accounting Information System are:

1.Collect and Process Data-

This is the phase where accountants or bookkeepers gather data from cash sales, receivables, and payroll. By using an Accounting Information System, the software processes all the debits and credits into an accurate management database.

2.Providing Important Reports to the Management-

Management uses the reports derived from AIS to analyze the company’s current operations and financial condition and gear up for the future by making plans and setting up goals.

3.Accuracy and Security-

You can improve security by limiting the number of people who can access your system. By doing this, you can ensure that the data remains confidential and data are being secured. Plus, if anything goes wrong, it is easier for you to track down the digital footprints.