The concept of an information system is used in organizations in reference to a computer system which provides the management and other personnel with updated information on the organizational performance such as current inventory and sales. It allows for wider accessibility and a faster rate of information exchange.

Any specific information system aims to support operations, management and decision-making. An information system is the information and communication technology (ICT) that an organization uses, and also the way in which people interact with this technology in support of business processes.

Information systems can thus help firms increase revenue while shrinking in size. Information systems can reduce the number of levels in an organization by providing managers with information to supervise larger numbers of workers and by giving lower-level employees more decision-making authority.

Keeping a log of activities is important for all the organizations, to understand the reason for the problems and so to provide solution to the same. Business Information System makes it simple to store operational data, revision histories, communication records and documents.

The top five benefits of a fully integrated information system are:

• Real Time Data. Through having integrated information in one system, all of the data is up to date.
• Better Communication.
• Reduced Risk of Errors.
• Greater Productivity.
• One Secure Location.

Other advantages of information systems

• operational efficiencies.
• cost reductions.
• supply of information to decision-makers.
• better customer service.
• continuous availability of the systems.
• growth in communication capabilities and methods.

Jobs can be lost when computers replace workers or tasks become unnecessary in reengineered business process. Widespread use of computers increases opportunities for computer crime and computer abuse. Computers can also create health problems, such as RSI, computer vision syndrome, and technostress.

In a sociotechnical perspective, information systems are composed by four components: task, people, structure (or roles), and technology.

Accounting information systems generally consist of six primary components: people, procedures and instructions, data, software, information technology infrastructure, and internal controls. Below is a breakdown of each component in detail.