Académique Documents
Professionnel Documents
Culture Documents
Accounting
systems
2. Computerised accounting
systems
2.1 What are accounting packages?
Software can be defined as computer programs
that tell the hardware what to do
Accounting packages are collection of
computer programs or software designed to
carry out specific accounting tasks. They may be
customised or bought off-the-shelf
An accounting suite is a set of accounting
modules or programs
Examples
2.2 Coding
Computers are used more efficiently if vital
information is expressed in the form of codes.
E.g., nominal ledger accounts will be coded
individually, perhaps by a 2 digit code:
05:
22:
41:
42:
Credit
Value
Code
Quantity
1234
41
$3,000
5642
150
15
Disadvantages:
(a) the initial time and costs involved in installing
the system, training personnel and so on
(b) the need for security checks to make sure
that unauthorised persons do not access to data
files
the necessity to develop a systems of coding
and checking
(d) lack of audit trail
(e) possible resistance of staff
3. Accounting modules
3.1 What are they?
A module is a program which deals with one particular
part of a business accounting system
An accounting package might have separate modules
for: invoicing, inventory, sales ledger, purchase ledger,
nominal ledger, payroll, cash book, non-current asset
register, report generator
Linking modules in such a way that data input into one
module can then be transferred automatically to all
other relevant modules can efficiency + errors
To
To
Activity
3.11
is run
An analysis of expenditure for nominal ledger purposes
List of trade payables balances together with a reconciliation
b/w the total balance b/f, transactions for the month and the
total balance c/f
Copies of trade payables accounts
Details of payments. Eg remittance advices, cheques, credit
transfer listing
Other special reports for: costing purposes, updating records
about tangible non-current assets, comparison with budget
Account code
Account name
100200
100300
100201
100301
300000
400000
500130
500140
500150
Advertising expenses
500160
Bank charges
500180
Telephone expenses
600000
Sales
700000
Cash
Some
accounts
A/c 300000
A/c 600000
debit
Credit
3,000
3,000
Regardless
Possible solution
Technostructure may
undermine line managers
authority, by empire building
4.6 Information
The financial accountant classifies a/c information + is
responsible for presenting this to external shareholders
The published accounts are an important source of
communication with outsiders
Reported levels of profit determine the return that
investors can receive indirectly affect the companys
cost of capital by affecting the share price
published financial information thus affects the cost
of one of the organisations most important resources,
money.
The
Activity
4: Hotel example
4.7 Control and stewardship
Money and funds are a businesss lifeblood
monitoring their flows is a necessary precaution.
If the flow of funds dries up a business can fail
very easily
Proper financial control ensures that the
business is adequately financed to meet its
obligations