A Reliable Information System

How to Maintain a set of accounting records?

Accounting Information System

Is a system of collection, storage and processing of financial and accounting data that is used by decision makers. An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources

Component of Information System

1. People
1. PROCEDURE AND INSTRUCTION
2. DATA
3. SOFTWARE
4. INFORMATION TECHNOLOGY INFRASTRUCTURE
5. INTERNAL CONTROLS

Regulators require that businesses prepare and retain a set of records

and documents that can be audited.

Let's take a look at the basic financial statements that every business owner should prepare and review :

1. Profit-and-loss statement.
2. Balance sheet.
3. Cash flow statement.