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The accounting information system, explained by our small business accountants in Sydney

Our small business accountants in Sydney define an accounting information system as a system that identifies, records, summarises and communicates the transactions of a company. In business accounting in Sydney, our accountants use them to produce financial statements that help companies make important financial decisions. There are a few key elements involved with an accounting information system which includes:

Accounting Transactions
These transactions are any economic event that affects a business’s assets, liabilities or equity at a time. In other words, this is any money coming into or out of the business. In business accounting in Sydney, an example is a reduction in current assets which may be due to a purchase of land (non-current asset).

Accounts
An accounting record that accumulates the activity of a specific item and yield’s the item’s balance. For example, a company’s cash account may increase or decrease as cash is received and paid.

Chart of Accounts
Our small business accountants in Zetland define this as a list of accounts that a company uses to capture its business activities.

For more information regarding an accounting information system, please contact our small business accountants in Sydney.