Describing the basic accounting information system involving the inputs, processes and the outputs.

1. Accounting information system By nowMASTER Accounting

2. The accounting information system is a set of input, processing and output procedures designed to provide the financial information required by stakeholders of a business.

3. The inputs are the source documents that evidence the financial transactions of the business. Source documents are typically invoices, receipts, deposit slips, cheque butts, authorized memos.

4. The process used in the accounting information system is double-entry bookkeeping. This ensures that transactions are recorded in journals in chronological order and posted to ledgers that sort the transactions into account type order.

5. The accounting process then delivers outputs in the form of financial statements that give a view of the financial position and performance of the business. The two key financial statements are the Income Statement and the Balance Sheet.

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