Vous êtes sur la page 1sur 22

CARRILLO FUNERAL HOME

Accounting Information System Prepared by: Honeysuckle Belle Group Bs Accountancy III

Table of contents
Chapter I: The problem and Review of related literature Introduction Background of the study Statement of the problem Review of related literature Chapter II: Methodology Technical Operational Economic Schedule SWOT Analysis

Chapter III: Presentation of System


Context Diagram- Current System Context Diagram- Proposed System Presentation of CRYPT System

Chapter IV:
Summary, Conclusion and Recommendation

Chapter V: Picture Documentation

Introduction
Accuracy in accounting records is an inevitable part of organizational management for a several reasons. One of that is keeping accurate accounting records that can support the financial viability, continuity and compliance with legal requirements applicable to the organization. It is also necessary in meeting the responsibilities of the organization to its costumers, suppliers and other groups with interest in keeping accounting records. The need for accurate accounting records accrues to all organizations regardless of size and scale of operations. To meet this emerging need, several kinds of computerized accounting systems have been developed in the market which organizations can adopt to their organizations. Organizations recognizing their need for computerizing their record keeping activities have to determine what type of system works best for the organization and consider various areas that will be affected by the change.

Background of the study


Carrillo Funeral Homes is one of the most popular business in Laguna that provides funeral services in a traditional and caring way. It was established in the year 1977 at Rizal Pila, Laguna. First, there is no starting capital engaged in their business because it is done through consignment. For almost 33 years in the business, Carrillo Funeral Home expanded and established its branches at Magdalena, Victoria, Lumban and Pagsanjan. Their caskets was made from Pampanga and Lucena wherein the producer is her brother. Funeral cost vary greatly depending on the type of funeral or memorial service that the costumer are planning. On average, funeral service cost 8,000- 70,000 Php for adult and 6,000Php for children. Hon. Milagros R. Carrillo is the owner of the business and she was the political adviser of our former Governor Lazaro and a newly elected councilor of Pila, Laguna. Other than Carrillo Funeral Home, she also manages a boarding house beside the Union College in Sta. Cruz, Laguna. In terms of accounting system, they only use manual approach and Hon. Carrillo herself was the one who bookkeeping all the business processes in sales, purchases, revenues, planning and returns,etc. However, due to the modernization and technological advancement, Carrillo Funeral Homes is threatened by their competitors of overcoming them through the advantages of using computerized accounting system.

Statement of the problem


Since Carrillo Funeral Home uses only a Manual Accounting System they encounter these problems:


Manual accounting systems utilize several paper ledgers to record financial transactions. Manual accounting typically is performed by hand, in pen, in a ledger. It is time consuming, since Hon. Carrillo was too busy in doing many other things. Errors are inevitable in a manual accounting system thus computation might not as accurate as that of computerized accounting system The owner has poor eyesight so that there can be a possibility to miss some transaction. Some customers fail to fulfill the payment on time.

Review of related literature


Technology will make web based Funeral Home accounting the new standard in the industry By Bill Bischoff My 35 years working the funeral service industry has been quite an experience and very rewarding. During all those good times, I have met 1,000s of funeral directors and their families and have visited 100s of funeral homes. There is no better industry or better people than those dedicating their lives and careers to serving the needs of others at a very difficult time in their life. In my experiences, there is no better profession than the funeral profession. My experience today talking with funeral home owners about their accounting systems has been very interesting and enlightening. The accounting procedures and systems fall into 3 basic categories: a. All accounting is done in house b. Local CPA firm c. Industry Accounting firm The fact is there are many funeral home businesses today that do not have an up to date accounting or financial system to help guide them to make timely decisions and manage their business. Some Funeral homes uses an accounting system that is entered into the ledger book by hand and the numbers were added up on a desk calculator printed on a roll of paper. In times like these, when we are experiencing a slowdown in our economy, an accounting system that is tailored and customized to the funeral homes business can be vital to maintaining the heath and prosperity of the business.

Methodology

TOWS Analysis
Technical


Manual accounting has advantages that include comparatively cheap workforce and resources, reliability, independence from machines and skilled workers availability. But it also includes some disadvantages such as reduced in speed, increased effort of accountants, relatively slower internal control reporting, routine work and some others. Computerized accounting has advantages that include high speed and mobility of reporting, reliability, no routine work, increased accuracy, internal control system of increased productivity, easy back up and restoration of records. But it also includes some disadvantages such as introducing and using the system, special trainings for personnel, increased personnel costs, dependence on machines etc.

Operational


Manual accounting implies that employees perform the whole accounting cycle manually on a periodic basis: they calculate trial balances, journalize transactions, prepare financial statement, reports and other routines. Computerized accounting implies that the only thing that employees do is recording transactions into the computer which processes the other steps of accounting cycle automatically or by a request. Manual accounting requires qualified accountants to keep a record of business transactions while computerized system requires accountants which can use specific software and thus they cost more. Computerized accounting system can cost thousands, depending on the complexity and the size of organization. Manual accounting means that records are maintain by person not by machine. So it takes time and but cheap and low skills. In computerized accounting records are maintain by person but with help of computer. All accounting cycle is completed by computer which is faster than manual costly and require high skills.

Economic


Schedule


SWOT Analysis
Strengths  The customer is not required to pay in full in availing their services.  There is a good employee customer relationship.  In Funeral Home business there is a sure income and it is always in demand.  The caskets are surely at low cost and high quality  Caskets come in a many different materials, styles, colors and can have a variety of features. Weaknesses  Lack of employee  The owner has poor eyesight so that there can be a possibility to miss some transaction.  Some customer fail to fulfill the payment on time  The owner does not want to have modern changes in recording every business transactions.

Opportunities
 

The owner took care all of the burial processes for the deceased since she has an immediate access to GSIS,etc. The price range of the funeral service is much cheaper than the competitors

Threats
   

The competitors might introduce a new and affordable services If there is no death The cost of the raw materials become high Insufficiency in inventory during calamities is possible due to increased number of deaths.

Presentation of CRYPT system

Start

Funeraria Carrillo
Customer inquiry

Cash payment

Official receipt Inventory Recording transactions

Accounts receivables

Bad Debts End

Start
Y Invoice N
Apply customer payment

New

Payment

N Y
Purchase transaction

Payment And purchases

N Reports

Y Unpaid accounts Invoice reports Sales invoice payment Balance sheet

Profit and Loss statement

End

Summary, Conclusion and Recommendation

Summary
This proposal seeks to look into the features that make up an effective computerized accounting system as well as in order to maintain control and solution out certain problems encountered within the business. This proposal also emphasizes on the advantages towards competitors, of having a computerized accounting system and the benefits that customer can get. Accomplishing this proposal aims the utilization and application of I.T. to Accounting Information System of Carrillo Funeral Home.

Conclusion and recommendation


Based from the discrete observation and findings the conclusions are conceptualized that although mistakes will occur even with data analysis systems and security protocols in place, the fact is that the business can hope for is to reduce inaccuracies. We can also conclude that the elements of an effective computerized accounting system is context-based dependent upon the needs and other consideration of business organization seeking system computerization. We hereby recommend that, Carrillo Funeral Home should change its accounting method and used a computerized accounting system, for them to gain profit, advantages over competitors and as well as customer satisfaction.

Picture documentation

Thank You! :p