How to Store Accounting Data for Accounting Information Systems

Data storage must be efficient for retrieval of accounting records.

Businesses must use a reliable data storage plan to maintain the ease of access concerning accounting information within computer systems. Records must be available for instant use for daily operations such as payroll, inventory and sales. Accounting data storage consists of the use of master filing storage, transaction filing for customer orders and record retrieval for auditing purposes. Accounting information systems must have proper data protections to prevent the illegal access of business and customer account information from fraudulent use.

Difficulty:

Moderate

Instructions

1. Create a master table, which is a chart system where you group certain files together based on usage. Accounting files such as vendor information, shipment and accounts receivable and payable would be stored in a scheduled date journal. Group similar information like payroll and cash disbursements within a different section of the system with special encrypted passwords so only authorized personnel have access to records.

2. Number files to prevent gaps in data storage or for duplicate data to be recorded within different sections of the accounting system. Apply sequence codes to customer accounts that can be based on address information, date on which the customer created the account or bank account numbers. This allows for organized document retrieval.

3. Place reference numbers on files to allow for tracing of transactions for auditing purposes. Adequate documentation and the use of smart coding provides auditors to cross-reference book-keeping records and accounting information data to locate discrepancies or mismanaged revenue procedures.

References

• Accounting Information Systems: Essential Concepts and Applications
• Portland State University - School of Business Administration: Chapter 2---AIS processes