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It is an information system for collecting data, convert data into information, and distribute that data to users. The main aim of AIS is to collect, accumulation, and procedure financial and accounting data which leads to the making of informational reports used by the manager for decision making.
It has 3 basic purposes that are :
1: The primary function of an AIS is too well organized and actual collection and storing of data related to an organization's financial events, which includes getting the data from source documents, and then convert data into ledgers.
2: The second function is to distribute information that is used for decision making.
3: The third function is to make control are in place to accurately records and procedure of data.
AIS has 6 basic parts:
1: People who use the structure, including accountants, administrators, and business experts.
2: Procedure and directions are the methods through which data are collected, stored, recovered, and managed.
3: Data have all the statistics used in an AIS.
4: Software has all computer programs used for processing information.
5: IT structure has all the hardware used to access AIS.
Internal controls are the security method used to save data.
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Information System changed always how bookkeeping errands are prepared. The times of green paper cushions are gone, and rather organizations have a concentrated spot where all bookkeeping exchanges are entered and spared. Not any more searching for paper diaries or including long sections Computer programming does that for you, blunder free. On account of sensibly valued equipment and programming, even private ventures can profit by automated bookkeeping.
The fundamental advantage of AIS in bookkeeping is the speed of handling undertakings. Information is entered once and would then be utilized and reused in assembling reports by truly squeezing a catch.
At the point when information is entered in a bookkeeping framework, manual or mechanized, a bookkeeper needs to group it in an itemized manner. For instance, an exchange could be a business income or an intriguing income. Utilizing data frameworks, this ordering procedure is effortlessly practised with a drop-down menu from which you pick the best possible classification.
When information is gone into a PC, it is sheltered. The odds of losing information are far off, particularly when you perform customary framework reinforcements.
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