Applications of Computers in Accounting . Management Information System and Accounting Information System In order to remain competitive, organisations depend heavily on Information Systems. Management Information System (MIS) is used the most common form of information system. A management information system (MIS) is a system that provides the information necessary to take decisions and manage an organisation effectively.
MIS is supportive of the institution’s long-term strategic goals and objectives. MIS is viewed and used at many levels by management: Operational, Tactical and Strategic. Accounting Information System (AIS) identifies, collects, processes, and communicates economic information about an entity to a wide variety of users. Such information is organised 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 organisation’s Management Information System. The following diagram shows the relationship of the Accounting System with the other functional management information systems. Fig.
. : Relationship of the accounting system with other functional management information system The diagram shown above entails the four widely recognised functional areas of management. An organisation operates in a given environment surrounded by the suppliers and customers. The informational needs emerge from the business processes stratified into functional areas where accounting is one of them.
The accounting information system (AIS) receives and provides information to the various sub-systems of the institutional/ integrated MIS. © NCERT not to be republished