Accounting Information System - AIS

AAA

DEFINITION of 'Accounting Information System - AIS'

The collection, storage and processing of financial and accounting data that is used by decision makers. An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources. The resulting statistical reports can be used internally by management or externally by other interested parties including investors, creditors and tax authorities.

INVESTOPEDIA EXPLAINS 'Accounting Information System - AIS'

An accounting information systems that combines traditional accounting practices such as the Generally Accepted Accounting Principles (GAAP) with modern information technology resources. Six elements compose the typical accounting information system:

  • People - the system users.


  • Procedure and Instructions - methods for retrieving and processing data.


  • Data - information pertinent to the organization's business practices.

  • Software - computer programs used to process data.

  • Information Technology Infrastructure - hardware used to operate the system.


  • Internal Controls - security measures to protect sensitive data.
RELATED TERMS
  1. Certified Information Systems Auditor ...

    A certification available for professionals who conduct audits ...
  2. Financial Statements

    Records that outline the financial activities of a business, ...
  3. Accounting

    The systematic and comprehensive recording of financial transactions ...
  4. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities ...
  5. Certified Public Accountant - CPA

    A designation given by the American Institute of Certified Public ...
  6. Generally Accepted Accounting Principles ...

    The common set of accounting principles, standards and procedures ...
Related Articles
  1. What's the difference between book and ...
    Investing

    What's the difference between book and ...

  2. 12 Things You Need To Know About Financial ...
    Investing Basics

    12 Things You Need To Know About Financial ...

  3. A Look At Accounting Careers
    Personal Finance

    A Look At Accounting Careers

  4. A Guide To Careers In Accounting Information ...
    Professionals

    A Guide To Careers In Accounting Information ...

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center