Accounting Information System Essay

1108 Words5 Pages
Accounting is one of the fundamentals of any business because it is a means and a key factor in achieving financial stability. The work of accountants in companies also helps identify and measure their financial wealth, which includes liquidity and profit rates. Without accounting, companies will not be able to make various decisions, Term accounting is considered to be a science based on the use of financial information. To track accounting activity in conjunction with IT resources, the accounting information system is considered the best system. .
And using financial reports generated internally by management or externally by other interested parties including investors, creditors, tax authorities, reporting and administrative
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In addition, there are three critical functions of accounting information systems: the first function of the FIR is to collect and store data effectively in relation to the financial activities of the organization, including access to transaction data from source documents, recording transactions in journals, publishing data from journals to books the professor. The second function of the Flight Information System is to provide useful information for decision-making, including the preparation of management reports and financial statements. The third task of the system is to ensure that there are precise controls for recording and processing data accurately .. Accounting information system it has also benefit in any organization use this system , is provide accurate and timely financial information for internal management purposes. While these systems can include paper manuals and ledgers, most systems in today’s business environment are built upon accounting software programs or applications. These systems provide financial or operational reports for business owners to make decisions. An accounting information system can also integrate and fulfill departmental and company-wide…show more content…
The amounts payable are often classified as creditors for the purchase of physical goods recorded in the inventory, commercial creditors, expenses payable and creditors for the purchase of goods or services to be disbursed. Common examples of creditors' expenses are advertising and travel. The purpose of the management of accounts payable is to ensure that all payments of the University's funds are made in accordance with generally accepted accounting principles. This means providing external customers as well as internal customers with more efficient, accurate and prompt service. The responsibility for the management of accounts payable is the assessment and preparation of payments, corporate travel cards, cash advances, travel expenses, petty cash and payment of goods and services provided by individuals and sellers. These amounts are
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