January 29, 2022


Accounting + Finance Blog

Meaning of data processing and key Explanations

Meaning of data processing and key Explanations

Data is the new oil! So it is said. But data must be converted to information. This makes it useful to decision and policymakers. To achieve these, data is processed to useful form. Let’s look at data processing in this article.

Definition of Data Processing

It is the conversion of raw facts or data into useful information that aid users make beneficial decisions.

Also, data processing is defined as the process of converting data to use or the desired form.

Key Explanations

Data is processed. Data processing starts with the collection of data. Immediately the data is collected, it is processed. This is done through a particular processing method. This processing method can be manual or automated through machines or electronic devices like computers and mobile phones.

Data is converted. During the processing of the data in any of the above methods, conversion takes place. The conversion process is simple for users of an accounting information system. But for the developer off the system, it’s a different ball game.

READ ON  Accountants as Users of Accounting Information System (AIS)

Conversion of data through the electronic device is more than just using a software in a device. It requires an Application Software. For example, in writing this article requires providing information from a set of data. I have collected data from personal knowledge and other research work. Data is converted to useful information, it is processed through the software on an electronic device.

This software might be Microsoft Word or Google Doc among others. After writing it on the software, the article will be refined. Also copied to WordPress or other data hosting sites like blogger, etc. This becomes useful information available for interested readers.

Useful or Desired form. After converting data, it is put in a form desired or required by the decision-makers. And in a readable and understandable format. There are various forms or formats to this respect.

READ ON  Meaning of Database System in an Accounting Information System

Charts, tables, MS Excel worksheet, documents in PDF, Docx, PPT formats, Audio Voice, Videos, blogs, websites, Augmented and Virtual Realities among other methods.

Decision and policymakers. This includes supervisors, management, Board of Directors, Chief Executives, Ministers, Commissioners, Legislators, President among others. They are the users who need Accounting information for decision making.


Data is not useful unless it is converted to a form usable to decision and policymakers. The conversion process is easier said than made available. Such processes required design and codification.