What are the advantages of AIS (Accounting Information System) ?
What are the advantages of AIS (Accounting Information System) ?
It is a fact that more than 80% of computers have been used to process business data. Business users were one of the earliest users of computers and the accounting department is generally the first one to get computerized. Following are the main benefits of using AIS.
(i) The computers are more efficient in processing numeric data as compared to humans. As accounting work mainly deals with numeric data, computers are faster in processing accounting data. Moreover, accounting deals with basic mathematical calculations and it is very easy to develop software for processing accounting data on computers.
(ii) Accounting calculations are carried out in a step by step manner and by following accounting rules. Every transaction is entered as per its type. As the nature of accounting data is algorithmic, the software can be easily designed to process accounting data.
(iii) The basic method and rules for processing accounting data are the same regardless of the size and type of the business. Due to this reason, a general type of accounting information system can serve every type of business. If some organization needs to have some customized control, a customized package can be developed after minor modifications.
(iv) The performance of computers remains unaffected by the size and the volume of data to be processed. Computers will not make mistakes with the increase in the volume of data or they will not get bored when the same process is repeatedly processed. Therefore, computers are better for processing accounting data than humans.
(v) It is much easy to maintain accounting standards and control the accounting data of an organization.
It is a fact that more than 80% of computers have been used to process business data. Business users were one of the earliest users of computers and the accounting department is generally the first one to get computerized. Following are the main benefits of using AIS.
(i) The computers are more efficient in processing numeric data as compared to humans. As accounting work mainly deals with numeric data, computers are faster in processing accounting data. Moreover, accounting deals with basic mathematical calculations and it is very easy to develop software for processing accounting data on computers.
(ii) Accounting calculations are carried out in a step by step manner and by following accounting rules. Every transaction is entered as per its type. As the nature of accounting data is algorithmic, the software can be easily designed to process accounting data.
(iii) The basic method and rules for processing accounting data are the same regardless of the size and type of the business. Due to this reason, a general type of accounting information system can serve every type of business. If some organization needs to have some customized control, a customized package can be developed after minor modifications.
(iv) The performance of computers remains unaffected by the size and the volume of data to be processed. Computers will not make mistakes with the increase in the volume of data or they will not get bored when the same process is repeatedly processed. Therefore, computers are better for processing accounting data than humans.
(v) It is much easy to maintain accounting standards and control the accounting data of an organization.
