An accounting information system is a subset of the management information system. A management information system focuses on providing business owners and managers with supporting documents for making decisions. Accounting systems focus primarily on financial transactions. Business owners, directors and managers may not be on the forefront of the company’s operations. An accounting information system provides several benefits for owners and managers needing to review financial transactions.
Improving workflow is a common goal for business owners and managers. Accounting workflow represents the individual processes by which financial documents flow through a company. Internal documents relate to financial reports for business owners and managers, while external ones represent information relating to the economic market. The accounting information system ensures these documents get to the individuals responsible for making decisions.
Companies typically use several types of processes in their accounting department. Paying bills, collecting customer accounts, posting journal entries and creating account reconciliations are just a few common processes. Accounting systems often allow managers to develop processes that take advantage of the company’s information system. Business owners may also be able to reduce the number of processes in their accounting department. Reducing the number of processes can decrease the amount of time it takes to process financial information.
Business organizations often use accounting information systems to provide support for management decisions. Support usually includes financial analysis from company accountants. Analysis is often taken for the company’s accounting information system. Using business technology, this system can process copious amounts of documents electronically for owners and managers. Information systems also allow business owners and managers to request specific analysis reports within the scope of the company’s accounting system.
Accounting information systems usually provide companies with a certain level of flexibility. This flexibility allows business owners and managers to change how their system gathers and distributes financial documents. Changes to business operations usually can create significant changes in a company’s financial or accounting processes. Business owners and managers need the most current documents when reviewing their company’s overall performance. Automated information systems allow companies to add new business divisions or departments into their accounting gathering process.