Tag: overview of computerised accounting system

An organisation is a collection of interdependent decision-making units that exists to pursue organisational objectives. Every organisation accepts inputs and transforms them into outputs. All organisational system pursue certain objectives through a process of resource allocation, which is accomplish through the process of managerial decision-making.

Management Information System (MIS) is used the most common form of information system. A management information system is a system that provides the information necessary to take decision and manage an organisation effectively.

Every medium sized to large organisation has a well established information system that is meant to generate the information required for decision-making. With the increasing use of information system in organisations, Transaction processing systems (TPS) have started playing a vital role in supporting business operations.

Arithmetic and logic unit is responsible for performing all the arithmetic computations such as addition, subtraction, division, multiplication and exponentiation. In addition to this it also performs logical operations involving comparisons among variables and data items.

Information Technology (IT) follows the GIGO principle (Garbage in-Garbage out), it is necessary that input to the IT-based information system is accurate, complete and authorised. This is a achieved by automated by automating the input, A large number of devices are now available to automate the input process for a TPS.

A simple computerised accounting system accepts the complete transaction data as input; stores such data in computer storage media (say hard disk) and retrieves the accounting data for processing as and when required for generating an accounting report, as output. 

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.