Accounting information systems collect and process transaction data and communicate the financial information to interested parties. A big advantage of computer-based accounting information systems is that they automate and streamline reporting, develop advanced modelling and support data mining. Initially, accounting information systems were developed "in-house" as no packaged solutions were available. The software-based solutions allow large and small businesses greater control of their finances and provide a competitive method for in-house accounting … There are many types of accounting information systems and, as a result, they vary greatly. Therefore, many accounting practitioners preferred the manual approach rather than computer-based. An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources. Accounting is also a field of study and profession dedicated to carrying out those tasks. When goods from the vendor are received, a receipt is created and also entered into the AIS. As transactions occur, the data is collected from the business events and stored into the system's database where it can be retrieved and processed into information that is useful for making decisions. In ERP, a system such as accounting information system is built as a module integrated into a suite of applications that can include manufacturing, supply chain, human resources. Examples of Financial Accounting These degrees generally provide students with both accounting knowledge and an understanding of the technology involved in setting up an AIS. The purpose of an accounting information system (AIS) is to collect, store, and process financial and accounting data and produce informational reports that managers or other interested parties can use to make business decisions. With large corporations that generate large volumes of transactional data, running reports with even an AIS can take days or even weeks. Definition of Accounting Accounting is the recording of financial transactions along with storing, sorting, retrieving, summarizing, and presenting the results in various reports and analyses. Such solutions were expensive to develop and difficult to maintain. An AIS typically follows a multitier architecture separating the presentation to the user, application processing and data management in distinct layers. These systems must ensure that the reports are timely so that decision-makers are not acting on old, irrelevant information and, rather, able to act quickly and effectively based on report results. As the need for connectivity and consolidation between other business systems increased, accounting information systems were merged with larger, more centralized systems known as enterprise resource planning (ERP). Consolidation is one of the hallmarks of reporting as people do not have to look through an enormous number of transactions. Accounting information systems help with the flow of information regarding all the aspects of a company’s financials, including taxes, reporting, or, if need be, an audit. The first function of an AIS is the efficient and effective collection and storage of data concerning an organization’s financial activities, including getting the transaction data from source documents, recording the transactions in journals, and posting data from journals to ledgers. Even using the manual approach can be ineffective and inefficient. Accounting information systems have three basic functions: An accounting information system typically has six basic parts: Because an AIS stores and provides such valuable business information, reliability is vitally important. An accounting as an information system (AIS) is a system of collecting, storing and processing financial and accounting data that are used by decision makers. Today, AIS vendors tout their governance, risk management, and compliance features to ensure business processes are robust and protected and the organization's assets (including data) are secured. System Auditors is one of the top choices in the past two decades, they look at the controls, data processing, data integrity, general operation, maintenance, security and other aspects of all types of information systems used by businesses.