Accounting: a comprehensive system for collecting, analyzing, and communicating nancial information. Accounting information system (ais): an organized procedure for identifying, measuring, recording, and retaining nancial information so that it can be used in accounting statements and management reports. Many users for accounting information: business managers, employees and unions, investors Who are accountants and what do they do. Controller: the individual who manages all the rm"s accounting activities. Nancial accounting system: the process whereby interested groups are kept informed about the nancial condition of a rm (concerned with external users like consumers, union) Helps ensure users can compare information from different or same company. Information in such reports is mostly historical (occurred in past accounting periods) Managerial (management) accounting: internal procedures that alert managers to problems and aid them in planning and decision making. Designed to aid in planning, they are forward looking rather than historical.