AIS stands for Accounting Information System and MIS for Management Information System. In summary, there is no AIS without MIS. However, there are key differences between AIS and MIS.
AIS is a subset of MIS. The Accounting Information System is a Subset of the Management of Information System. This simply means that a firm’s AIS is structured and made available in the Management Information System. When salaries are to be paid, the employee in charge will source for staff data in the MIS to pay to post the entry for it.
AIS focuses on Financial transactions. Generally, and also from the definition of AIS, this term is based on financial transactions and non-financial transactions that are related to the financial transactions. However, an MIS is totally based on nonfinancial transactions. For example, the acquisition of a motor car for a director at 8 Million Naira, contains both financial and nonfinancial information. But the nonfinancial information (Motor Car) relates to the financial information (8 Million Naira).
AIS provides information to a wide range of users than MIS. AIS information is made available to a wide range of users. Management, employees, banks, government, (internal and external users) and so on using the information provided in AIS. However, management is the major user of MIS information.
AIS relies on the information available in the MIS. AIS is a subset of MIS. Without MIS, it might be impossible to compute information in the AIS. For example, customer information is available in the MIS system. To compute transactions in the Transaction processing unit of the AIS, the employee authorised to carry out such task will source for the customer’s information in the MIS database.
The AIS provides tax returns data and financial reports for management and other users. The Management Information System can never provide tax returns information and financial reports that are made available to tax authority and management, respectively. But, AIS does! In most digital AIS systems, the data is automatically generated.
In the next lesson, we will discuss the general model for AIS.
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