Manufacturing account

Accounting information systems typically comprise five elements: inputs, processes, outputs, storage and internal controls. The elements work together to provide reliable information effectively and efficiently. An accounting information system (AIS) is a structure that a business uses to collect, store, manage, process, retrieve and report its financial data so that it can be used by accountants, consultants, business analysts, managers, chief financial officers (CFOs), auditors, regulators and tax agencies.
An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources. The resulting financial reports can be used internally by management or externally by other interested parties including investors, creditors and tax authorities.
There are five fundamental principles behind every information system. The first is the control principle. Simply stated, all accounting information systems must have proper internal controls. Internal controls are procedures and practices controlling and monitoring business activities.
Accounting information systems typically include the general journal and four types of special journals. These are the sales, cash receipts, cash disbursements, and purchases journals. Information systems also commonly include accounts receivable and accounts payable subsidiary ledgers.
The main advantages of an accounting information system are the increased speed of processing the numbers, efficient organization, and classification and safety of inputted data. This contrasts the manual evaluation of information, which involves writing out the data by hand and doing time consuming calculations.
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.
The general ledger functions as a collection of all balance sheet, income and expense accounts used to keep a business’s accounting records. At the end of an accounting period, all journal entries are summarized and transferred to the general ledger accounts. This procedure is called “posting.”

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