MIS and AIS are computer based information systems. Any organization requires a lot of information to keep performing efficiently. All this information, coming from various sources about different aspects of the business is collected and analyzed through computers and produce a detailed report that becomes an effective tool for managers to organize, evaluate and efficiently run their departments. This computer based information system is known as Management Information System (MIS), today forms the backbone for any organization to function smoothly. MIS has invaluable information that can be used effectively to evaluate past decisions and to plan accordingly to predict future operational success.
Accounting Information System, or AIS, on the other hand is a subset of MIS and pertains to a system of keeping a record of accounting books and financial statements along with sales and purchase records and other financial transactions. This system is extremely crucial in maintaining the account system of any organization.
While AIS is no doubt very helpful to the management in assessing past performances and to come up with decisions for future projects, it is not just financial information that can makeup for all that is required to run any organization successfully. Management requires information that goes far beyond the capability and scope of AIS. With the size and functions of any organization growing and becoming complex, additional information is required for many reasons such as production planning, sales forecasting, warehouse planning, market research etc. All this information comes through MIS as this sort of information is not normally processed by traditional AIS.
It is clear that AIS is a system collects and stores data and then with the help of computers produces results that are used by managers that include investors, creditors and internal management of the organization. Though AIS as a system can be performed using a paper and a pencil, in modern context it refers to a very complex computer based system that combines the traditional methods of accounting with the latest information technology to come up with all the financial information that is needed by management to take financial decisions.
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Summary • MIS stands for Management Information System while AIS stands for Accounting Information System. • AIS pertain to finances while MIS is a much broader concept. • AIS is regarded as a subset of MIS. • The information obtained through AIS is critical for MIS. |