Accounting Information System
Accounting was carried out through a manual process, in the earlier periods. The manual system is cost effective and suitable for small businesses. Gradually, as the sales increased, machines which would calculate taxes and also total the sales were innovated. Such machines reduced the time taken for accounting, but to a limited extent. Technological advancement brought in computers which could store data and process it with phenomenal speed and also accuracy. The use of computers could carry out not only arithmetical calculations with accuracy and speed but also provide timely accounting information, the need of today for effective and timely business decisions. It is popularly known as Computerised Accounting System.