Accounting Information System (AIS) is a system of processing data relation to financial transactions in such a manner that useful information is made available for internal decisions of the unit as also to outsiders. Accounting Information System (AIS) is a part of Management Information System (MIS). Information provided by AIS is useful to managers in internal decision making. Such information also becomes useful to external parties.

Management Information System (MIS) is a wide system as compared to Accounting Information System (AIS). MIS can comprise of Production Information System, Marketing Information System, Accounting Information System, Human Resources Information System, etc. In short we can say that, MIS provides other informations with accounting information.

From the above discussion, we can state that Accounting, Information System (AIS) makes various useful accounting information available to internal and external users that helps users in decision making.

AIS can provide following reports or statements relating to accounting :

• Profit and Loss statement: From this statement, external parties can get information about profit or loss, i.e., result of business. Directors can get information about profitability of different products or division or department, from this statement.
• Balance Sheet: From this statement, internal ancj external parties can get information about the financial position of the units, i. e., information about the assets and liabilities of the unit.
• Debtors’ report: Such report can give information relating to debtors or customers as per business organisation’s need.
• Creditors’ report: Such report can give information relating to creditors or suppliers as per business organisation’s need.
• Other reports : Business organisation may prepare other reports as per need. For example, Report about information of bank transactions for information to Managing Director.