Accounting Information Systems

An accounting information system can be defined as a system which collects stores and processes financial and accounting data, which is helpful in making business decisions (Hall, 2010). Thus, it does help a business in the tracking of accounting activity in a specified time period. The statistics collected can thus be used by the management both internally and externally in making decisions.

This data can also be produced when asked for by an external party interested in doing business with the company, for example, the investors, creditors, and tax authorities. However, in order to make the accounting information systems beneficial to an organization or a company, there are rules that need to be followed by the management and staff of the company.

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