I have been approached by some businessmen who are preparing to start up a business operation in which they will be manufacturing and selling women's fashion clothing. After I carried out some research and looked at a typical manufacturing business today, I have done a report for the businessmen. This report provides them with information and recommendations about employing an Accounting Information System.

I. Company Overview
Company name: Ally P/L
Number of employees: 35 people, including 1 director, 1 assistant director, 1 manager, 3 accountants, 5 fashion designers, 1 treasurer, 1 storekeeper, and delivery personnel.
Scope activities of company are: product and sell women's fashion clothing.

II. What type of AIS would that business have?
Accounting information is information obtained from the accounting profession. Accounting information shows the costs, as well as the profitability of the business activities. An accounting information system (AIS) is a collection of resources, such as people and equipment, designed to transform financial and other data into information.
There are two main types of AIS: manual accounting system and computerized accounting system:
Manual accounting system requires that all journal entries, invoices and other financial documents be created by hand. In this system, main human resources is people with computational tools, people do all the accounting work.
Computerized accounting system allows users to input information into accounting software programs, support for accountants.In this system, main resources are computer. All the accounting work (except for business analysis and reporting) is done by computer.

III. Why would they have a system?
Because of the nature and scale of operations of many organizations and businesses increasingly expand, the amount of data from economic and financial activities increased. This has caused difficulties in the organization of data storage and data processing to provide helpful information for decision-making process of the business leaders.
Accounting Information System plays a large role to address these difficulties and create a bridge between management system and operational systems for organizations and businesses. The primary role of AIS is collecting and storing information for economic and financial organizations and enterprises; count, synthesis, processing information in order to provide the necessary reports for organizational leadership.

Accounting Information System reduce costs in storage and information processing of business, simultaneously, reducing time and errors in the storage and handling of information in order to contribute to improving operational efficiency and promote rapid process of organizational development, business.
Because of that important role, it is necessary to develop Accounting Information System in businesses.

IV. What are the cycles that would be considered?

1. The expenditure cycle is a recurring set of business activities and related data processing operations associated with the purchase of and payment for goods and services.The purpose of the expenditure cycle is to facilitate the exchange of cash with vendors for needed goods and services. Purchases may be for cash or credit. 2. Objectives of the expenditure cycle
Ensure goods and services are ordered as needed.
Receive all ordered goods, verify condition, and paid at the optimal time for cash discounts and paid at the optimal time for cash discounts and avoidance of finance charges for late payment.
Maintenance of vendor records by the purchasing department, which is responsible for finding reputable vendors who offer quality goods and services at reasonable prices
Forecast cash outflows in order to prepare a cash budget.
3. Functions in the expenditure cycle
Stores recognizes the need for goods or services and issues a purchase requisition
Purchasing department places an order for goods or services by issuing a legally binding