AIS stands for Accounting Information System. It is a computer-based method for tracking accounting activity and responsible for collecting, storing, processing, organizing, and summarizing accounting data and transactions.
It is also used to cumulate financial transactions and essential financial reports, which helps stakeholders in decision making.
By using AIS, we can store and process financial data that later help in the following tasks:
- It is used to measure financial performance.
- It can evaluate the company’s finances and compare it with the previous period to conclude.
- It also avoids any miss-handling of data.
- It can also be used to connect Information Technology with GAAP principles.