# COMM 335: Information Systems Technology and Development

# Overview of Accounting Information Systems

# Data and Information

• Data -> Facts collected, recorded, stored, and processed by information systems.
• Information -> Processed data that provides meaning.

# Business Processes

A business process is a set of related tasks and activities done to accomplish a specific organizational goal.

Major business processes:

• Purchasing cycle -> purchase inventory for resale or raw materials for production
• Payroll cycle -> employees are hired/trained/compensated
• Sales cycle -> goods and services sold for cash or future promise to receive cash (accounts receivable)

# Accounting Information Systems

Definition -> system that collects, stores and processes data to produce information for use by decision makers.

Six components:

• People who use the system
• Procedures and instructions to collect, process, and store data
• Data about organization and its activities
• Software used to process data
• Information technology infrastructure
• Internal controls and security measures

# How can AIS add value?

• Improve quality and reduce costs of products and services -> e.g. monitor machinery so operators are notified immediately when performance falls
• Improve efficiency -> allow for JIT manufacturing
• Sharing knowledge -> provide easy platform to communicate knowledge between offices