Accounting Information System (AIS) known as “a system that collects, records, stores, and processes data to produce information for decision makers”, reflects this definition to the two main disciplines of accounting (e

Answer:

Accounting Information System is generally a compter based accounting method for tracking accounting activity with information technology resources.It is responsible for the collection, storage and process of financial and accounting data that is used for internal management decision making. The accounting information system is the major subsystems of the administrative system of the facility, to produce information in the form of reports and lists of crossing them financially. It is considered the backbone that helps the various administrative levels in achieving.

Financial Accounting has the role of recording an organization’s transactions with her external environment, in order to periodically and systematically determine the financial situation, and results of operations performed; the financial accounting information are retrospective and are made public, according to effective legislation.The Financial Accounting Information System provides managers the finnacial accounting information on which the formulation of policies, the development of business plans and the control of activities within an organizations are based on, and has the purpose of responding to the external legal requirements and to some accounting standards.

Management Accounting produces the majority of information destined to decision making processes, in addition data for the current management of clients-suppliers relationship can be extracted from the financial accounting, for correcting the inflation’s effects on the management’s decisions. The information produced by the financial accounting are part of the economic-financial analysis, and they shall contribute to the basis of the managerial decision. The management accounting does not act for the communication with the organization’s exterior, thus it’s not normalized, it is an “instrument of modeling companies” that comes at the hand of managers in the complex processes of “leading” the organization, an extremely efficient instrument with internal character.

Taking into consideration the role and functions of the financial accounting, but also those of the management accounting, we may say that these two information components are complementary and facilitate the efficient, effective and economic managemnt of an organization, through the information they provide, these competing to the adoption of the managerial decision.