What are the benefits of Management Information System (I.T.) to the modern day Accountant?
Accounting Information System (AIS) is a system that is uses a specific software application to track financial information. It collects, stores and processes the data from source documents such as invoices, purchase orders, employee expense reports etc into information relevant for various stakeholders such as investors, creditors and managers. This timely and accurate representation of data assists business managers to make business decisions and measure financial performance. Its benefits include:
1. Timely and accurate representation of information due to automated report generation.
2. Reports can be easily used and analyzed by business analysts, supervisors or other decision makers.
3. Lesser chances of error because data recording happens in one set of accounts.
4.The probability of error is less because recording takes place in one set of accounts.
5.No confusion arises from different stock valuations and methods of depreciation and profits.
6. Faster information generation aids quick decision making y the management
7. Improved work flow