Accounting Information System: An Application of Information Technology in the Area of Accounting

Abstract

Accounting Information System is essential to all type of organizations nowadays. The economic and industrial scenario in the recent past has been changing rapidly both in India and elsewhere. Especially, the growing intensity of competition has forced corporate sector to establish more innovative production and communication systems. To the modern business, the information flows are as important to the life and health of the business as the flow of blood is to the life and the health of the individual. As such the managerial functions centers around its decision making capabilities of the organization towards its cherished goal. This would not be possible without having adequate knowledge which in turn depends on relevant information. All over the world, Information and communication Technology (ICT) is playing an increasingly important role in both business and individual’s private lives. This is the era of Information and Communication technology and informational technology has touched all sphere’s of life. All organizations are adapting Information Technology in their business processes. The organizations have adapted Management information Systems (MIS) in taking strategic business decisions. An Accounting Information System is the System of records a business keeps to maintaining its accounting system. This includes the purchase, sales, and other financial processes of the business. The purpose of AIS is to accumulate data and provide decision makers the necessary information. In the decision area of Accounting and Finance, which is the most crucial area of management, flow of accurate, timely and sufficient information is necessary.