Importance of Accounting Information Systems in Finance and Funding

Finance and
Funding

Introduction
There are various forms of accounting information systems few
of them are Financials of the company which include Profit and
loss account and balance sheet. There are many other financial
information systems like MIS, Variance Analyses, budgets,
forecasts. Accounting information consist of three types of
accounting information . They are Traditional Accounting
information, Qualitative and other quantitative.

Types of Financial Accounting Information
Systems
Traditional and Financial and monetary accounting
information
Qualitative information ( non financial information)

Traditional and Financial Information
•Balance sheet:- Reflects financial condition of the company. It is useful for
knowing the net worth, future prospects.
•Income Statement :- helps in tracking revenue and expenditure in order to
know the operating revenue or losses.
•Cash Flow:- It is helpful in estimating the liquidity and solvency of the
organization in long run.
•MIS :- Management Information System
•Budgets:- estimate future expenses and helps in allocation of funds.
•Variance Analysis :- quantitative investigation
•Auditors report & Annual Reports serve as vital source of information.