Accounting Information System
Chapter 7
What are Accounting Information Systems?
An information system is a formal process for collecting data, processing the data into
information, and distributing that information to users.
The purpose of an Accounting Information System (AIS) is to collect, store, and process
financial and accounting data and produce informational reports that managers or other
interested parties can use to make business decisions. Although an AIS can be a manual system,
today most accounting information systems are computer-based.
Functions of an Accounting Information System
Accounting information systems have three basic functions:
1. The first function of an AIS is the efficient and effective collection and storage of data
concerning an organization’s financial activities, including getting the transaction data
