Describe the Stages in designing manual or computerized accounting system
Posted by Ripon Abu Hasnat on Thursday, May 29, 2014 | 0 comments
Accounting
reports are prepared for internal purposes as a management tool to aid decision
making and for external purposes to disclose to interested parties the
financial affairs of the business. So the design must cater for a wide variety
of needs.
The
system must be able to comply with government requirements, such as those for
the Bangladesh Taxation Office and Work Cover, and must be presented in a way
that shows the business financial position for the information of outsiders,
such as banks and creditors, as well as for the needs of management.
Stages
in the design for both a manual or computerized accounting system include:
1.
Collecting input information, including source documents
2.
Recording transactions in journals, ledgers and extracting a
Trial Balance
3.
Producing financial reports and statements
4.
Producing information for use internally to better control
and optimize the business potential
5.
Storing of information for future reference; for example,
for auditing purposes, the Bangladeshi Taxation Office requires data to be
available for the past five years, and also for comparing results with previous
accounting periods.
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