** Introduction:-

An Accounting Information System (AIS) is a structure that a business uses to

collect, store, manage, process, retrieve and report its financial data so that it can be used by
accountants, consultants, business analysts, managers, Chief Financial Officers (CFOs), auditors
and regulatory and tax agencies. In particular, specially trained accountants work with AIS to
ensure the highest level of accuracy in a company's financial transactions and recordkeeping and
to make financial data easily available to those who legitimately need access to it, all while
keeping data intact and secure. Accounting information system is considered as a subsystem of
management information system (MIS). To regard accounting as an information system, perhaps,
is the latest definition of accounting. For the first time in 1966, the American Institute of
Certified Public Accountants (AICPA) stated that, “Accounting actually is information system
and if we be more precise, accounting is the practice of general theories of information in the
field of effective economic activities and consists of a major part of the information which is
presented in the quantitative form”.

** Overview of Blue Bird School and College:-

In 1960, Dr. M Ahmed aggregated Mr. Aminur Rashid Chy and others and took
initiative to establish a school named Blue Bird School. Mr. Aminur Rashid Chy was the
President, Dr. M Ahmed was the Secretary and other members were Mrs. Fahmida Rashid Chy,
Mr. Farruk Rashid Chy, Dr. Krishno Kumar Pal (K.K.Pal), Mr. A Ali, K.U Jaigirdar and others.
The school is situated in Mirar Moidan, Sylhet.

In 2006, Blue Bird School started a college section that means Class XI (Eleven) and
Class XII (Twelve). Here also, the students of Blue Bird achieved one-hundred percent records
in Science, Arts and other section with GPA 5+.

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 The school aims at preparing the children to face the challenging world. The
emphasis is on a well all round personality and a responsible citizen of tomorrow. To educate for
life, not merely for living.

In addition to impart a high standard of education, the institution instills in the pupils
respect for each other’s religious belief, pride in their cultural heritage, and an awareness of
international events.

** AIS Applications of Blue Bird School and College:-

An accounting information system (AIS) is a system that first collects and stores data
and then processes it into information used by investors, creditors, and managers. An accounting
information system provides accurate and timely financial information for internal management
purposes. This information generated from AIS can ultimately help decision makers to manage
organizations more efficiently. The term AIS is most commonly referred to as a complex
computer-based system combining the resources and capability of information technology with
traditional accounting methods and controls. It can also integrate and fulfill departmental and
company-wide objectives. AIS have 5 subsystems. The first is the Revenue Cycle, involves
activities of receiving payment from student and other sources. Next the Expenditure Cycle
involves activities of buying and paying for goods or services used by the institution. Next the
human resources cycle involves activities of hiring and paying employees. Next the production
cycle involves activities converting raw materials and labor into finished goods which is not
existed in this institution because it is service oriented organization. The last one is financing
cycle involves activities of obtaining necessary funds to run the organization, repay creditors,
and distribute profits to investors which is also not present in this institution. And finally the
General Ledger and Reporting System, examining issues associated with providing management
with timely and accurate financial and nonfinancial information about the effectiveness and
efficiency with which the organization executes its various business activities.

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** Revenue Cycle at Blue Bird School and College:-

Revenue cycle includes the sales and cash received events. Blue Bird High School
and College is an educational institution which provides education to the students. So they
provide service to the students who are the customers for the institution. At first student a
payment book admission office where every page have 3 parts, one for students, one for bank
and one for the institution. Tuition fee is different in every class. Students have to collect their
payment slip according to their class. They have to pay additional fee like library fee, lab fee etc
if needed. Then students give payment to the Prime Bank Limited and collect the student part of
the payment slip. Bank takes other two parts of the payment slip. Then bank provide statement
and the part of institution in the payment slip to the school. Then accounts section will check the
transaction and record it to the general ledger and reporting system.

Revenue cycle of Blue Bird School and College is shown in a diagram below-

Payment Bank

Student slip

Statement and payment slip General ledger

Students
Accounts Section of the School and reporting
Payment Record
system
Book

Figure- Diagram of Revenue Cycle

** Expenditure Cycle at Blue Bird School and College:-

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 The expenditure cycle includes the purchases and cash disbursement events. . In the
expenditure cycle, the primary external exchange of information is with suppliers (vendors).
Within the organization, information flows to the expenditure cycle from the various
departments about the need to purchase goods and materials. Once the goods and materials
arrive, notification of their receipt flows back to those sources from the expenditure cycle. In
addition, management must be able to monitor and evaluate the efficiency and effectiveness of
expenditure cycle processes. That requires easy access to detailed data about the resources
employed in the expenditure cycle, the events that affect those resources, and the agents who
participate in those events. Moreover, to be useful and relevant for decision making, the data
must be accurate, reliable, and timely.

In Blue Bird School and College, at first teachers and officials show the various
needs of the institution to the Principle. Then Principle shows the needs in the meeting of
governing body. If the governing body approves the purchase then principle give work order to
the supplier of the product. After getting the order, supplier gives product to the institution and
invoice to the accounts section. The officials check the product and supplier take payment from
accounts section of the institution. Then accounts section record it to the general ledger and
reporting system.

Expenditure cycle of Blue Bird School and College is shown in a diagram below-

Governing Proposal Principal Teachers and

Body Office Officials
Approval Purchase needs

Work order Goods

Invoices Accounts Record General Ledger and

Suppliers
Section Reporting System
Payments

** Human Resource Cycle at Blue Bird School and College:-

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 The Human Resource Cycle associated with effectively managing the employee
workforce. It is the recurring set of business activities and related data processing operations
associated with effectively managing the employee workforce. The payroll cycle is the process
of hiring personnel to conduct the daily operations of the business. The payroll system must be
designed to meet government regulations as well as management’s information needs.
Incomplete or erroneous payroll records result impair decision making. Thus, the design of an
efficient and effective payroll system is vital.

Cheques are the payroll system’s principal output. Employees receive individual
paycheques in compensation for their services. A payroll cheque is sent to the bank to transfer
fund from the company’s regular accounts to its payroll account. Some employee takes money
through bank account, some through cash. Institutions deduct the amount of tax and provident
fund from the compensation of the employee. Then accounts section record it to the general
ledger and reporting system. The Human Resource Cycle is shown in a diagram below-

Credit Cheques issue

Employees bank Bank Accounts
account section

Cash payments Record

Employees General ledger and

reporting system

Figure- Diagram of Human Resource Cycle

** General Ledger and Reporting System:-

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 The general ledger is the main accounting record of a business which uses double-
entry bookkeeping. It will usually include accounts for such items as current assets, fixed assets,
liabilities, revenue and expense items, gains and losses. Each General Ledger is divided into
debits and credits sections. The left hand side lists debit transactions and the right hand side lists
credit transactions. This gives a 'T' shape to each individual general ledger account. This
information must be organized and stored in a manner that facilitates meeting the varied
information needs of internal and external users. Consequently, the general ledger and reporting
system must be designed to produce regular periodic reports and to support real-time inquiry
needs. For example, a teacher wants to know how much his contribution to provident fund is
made. The general ledger and reporting system is shown in a diagram below-

Revenue Expenditure Human Resource

Cycle Cycle Cycle

Cash receipts Cash disbursements Wages and

salary expense

General Ledger and

Reporting System

Figure:- The diagram of General Ledger and Reporting System

** Expenditure Heads of Blue Bird School and College:-

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 Blue bird school and college use different expenditure heads for maintaining their
accounting system. Some of them are:-

 Salary account

 Tax account

 Development account

 Insurance account

 Depreciation account

 Utility account etc.

** Expense and Revenue Recording Process at Blue Bird School and College:-

Expense and revenue recording processes play pivotal roles in a school's financial
accounting and reporting systems. Revenues and expenses determine a school's profit potential
and financial robustness. Revenue is income that a school generates from tuition and
administrative fees. An expense is a cost that a school incurs in operating activities. Examples of
expense items include salaries, rent, research initiatives and utilities. A school bookkeeper
credits a revenue account to increase its amount and debits it to decrease the account balance.
The opposite is true for an expense account.

** Audit and Quality Control Systems at Blue Bird School and College:-

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 Blue bird school and college follow stringent audit systems to check whether
procedures are in place to assure quality & integrity and to assess whether the perceived
outcomes and vision objectives are being achieved. Audit results are constantly analyzed and
addressed even in cases where mid course corrections are required. Members of the audit team
are individuals with proven track record in their areas of expertise. Blue bird school and college
perform audit evaluation of its curriculum, human resource, infrastructure, facilities and services
at defined intervals. 

** Conclusion:-

Accounting information systems are useful for companies and businesses

wanting to make the accounting process easier by utilizing a computer program or other system
that will perform payroll and other functions. These systems, commonly including accounting
software, make it easier to compile financial data for use in taxes, payroll, and other bookkeeping
requirements. Taking advantage of this type of system can provide many great benefits to a large
or small business. Accounting is a very important part of running and maintaining a business and
the success of a company will often heavily rely on the practices and procedures that are used in
the bookkeeping efforts of the company. By using Accounting Information System, Blue Bird
High School and College can easily know about accounting information of their institution. So it
is very much helpful to the management of blue Bird School and College.

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 References
 Accounting Information Systems by Marshall B. Romney and Paul John
Steinbart, 9th edition

 en.wikipedia.org/wiki/Sylhet_Blue_Bird_High_School_and_College

 www.aicpa.org
 http://www.investopedia.com/articles/professionaleducation/11/accounting-
information-systems.asp#axzz252MDazr1

 http://www.christianet.com/accounting/accountinginformationsystems.htm