Management and Accounting Information System

In order to remain competitive, organizations depend heavily on Information Systems. Management Information System (MIS) is used as the most common form of information system. A management information system (MIS) is a system that provides the information necessary to make decisions and manage an organization effectively. Accounting Information System (AIS) identifies, collects, processes, and communicates economic information about an entity to a wide variety of users. Such information is organized in a manner that correct decisions can be based on it. Every accounting system is essentially a part of the Accounting Information System (AIS) which, in turn, is a part of the broader system, viz. the organization’s Management Information System.

An organization operates in a given environment surrounded by suppliers and customers.

An accounting Information System (AIS) is a collection of resources (people and equipment), designed to rework financial and other data into information. This information is communicated to a good sort of decision-makers. Accepting information systems performs this transformation whether or not they are essentially manual systems or thoroughly computerized.

Management and Accounting information systems that are wont to ensure basic control is maintained over financial recordkeeping activities, but now it’s widely recognized as a broader concept and accounting system is a sub-component. The reports generated by the accounting are disseminated to the various users — internal and external to the organization.

The external parties include the proprietors, investors, creditors, financiers, government suppliers and vendors and the society at large. The reports used by these parties are more of a routine nature. However, the internal parties — the employees, managers, etc. use the accounting information for decision making and control.

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