Financial Accounting Accounting systems are a very important tool for any type of business such as corporation, partnership and sole proprietorship. Accounting systems are also called accounting information systems. Accounting information systems are the process of collecting and processing transaction data and communicating with decision makers. Every business should have an accounting information system because it helps us answer questions like: Should we expand our business overseas? Do we have enough paychecks for our employees? Accounting information systems can also help us understand what types of inventory we should use. As we learn more about accounting information systems in this paper, we will discuss the basic structures of assets, liabilities, and equity. We will also discuss four basic financial statements and the effects of revenues, expenses, and dividends. Finally, we will also discuss the difference between net income and cash flow. For entrepreneurs to be successful, they need to know many skills, such as knowledge of the accounting system. Without the accounting system, the entrepreneur would not know whether he is making a profit or loss. An accounting system will also include: data collection, data organization, accounting database, financial statements and reports, analysis. Assets are resources with economic value that an individual, company, or country owns or controls with the expectation that it will provide future economic benefits. Assets are recorded on the balance sheet and are generated to increase cash flow. These are the balance sheet items that express the book value of the properties owned. Assets can be anything physical such as cash, machinery, inventory, land and buildings. “Accountability… half of the paper… for how important accounting systems have been to businesses such as corporations, partnerships and sole proprietorships. We have defined what accounting information system is and how it works in business. We have discussed why so every company should have an accounting information system because it helps us answer questions like: should we spend our company abroad? Do we have enough paychecks for our employees? Accounting information systems can also help us understand what types of inventory we should use.While we have discussed the basic structures of assets, liabilities, and net worth, we will also discuss four basic financial statements and the effects of income, expenses, and dividends.Finally, we will also discuss the difference between net income and cash flow systems accounting information and what impact it could have on your business.