Why Is the Storage of Accounting Data Important to an Accounting Information System?

Government Requirements

• Most companies have specific federal or state requirements for maintaining certain accounting records. This can include a minimum number of years for payroll records, tax documents, general ledger copies and other documents. Paper and electronic documents will often have the same time limits.

Historical Use

• Business owners and managers will typically review historical information when making current business decisions. The accounting information system is a primary tool these individuals will turn to when looking for historical information for decisions.

Considerations

• Companies may decide to take historical paper records and scan them into computerized documents. This allows companies to transform stacks of paperwork that are difficult to review into searchable computer files organized by the information system.