The emergence of Information Technology has changed the way businesses operate today. Traditional paper-based processes have entirely been replaced with Information System (IS) as it plays a vital role in business transactions in solving all kinds of business related problems. Accounting Information System (AIS) covers all business functions from basic accounting processing systems to complex financial management planning and processing systems. It covers all the accounting aspects of business operations such as recording of enterprise assets or liabilities, purchases and sales which assist in computation of operational results and preparation of financial reports.

Any system is a collection of inter-related components that are used for attaining certain objectives. Each and every business firm works within an organized system wherein it receives inputs in the form of raw materials and is converted into output as final products. The effectiveness of the overall system depends on the decisions taken by the management at different levels. At this juncture, the relevance of Information System (IS) begins. IS is one that receives data as input, process them and provides output in the form of information as products. These information support business transactions, guide managerial decision-making and provide tactical and competitive edge to the organization. Along with other major functional areas in business like operations management, marketing and human resource management; accounting is also one such system which incorporates Information Technology (IT) into decision-making process. This results in Accounting Information Systems which forms a part of the organization's information system.

Accounting information system combines the traditional double entry accounting system with the modern IT resources. It is a system of records retained by the organization in order to maintain its accounting procedures. The main purpose of AIS is to gather data pertaining to the financial transactions, process them into quality information and report it to the concerned external and internal users in the organization.

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