Question

You have been employed to establish a computerised accounting system in a small organisation. The organisation currently uses a ledger card system for its accounts. The organisation has chosen a popular proprietary accounting software system. Describe the steps to be taken prior to inputting the data into the computerised system and how you would go about implementing the new system.

You must show that you can:

• set up an organisation’s chart of accounts by modifying an established integrated financial software system
• interpret and apply organisational policies and procedures
• implement an integrated accounting system ensuring integrity of the data
• process transactions, generate reports and maintain the integrated system

(Answer should be in Australian legislation)

(Accounting software can be MYOB, XERO or Quickbooks)

Answer 1

Elements and Performance Criteria ELEMENT PERFORMANCE CRITERIA

1.Implement an integrated accounting system1.1.The general ledger, chart of accountsand subsidiary accounts are implemented in accordance with organisational requirements, procedures and policies1.2.Customers, suppliers and inventory items are set up inthe system to meet organisational requirements and the reporting requirements of Goods and Services Tax (GST)1.3.Appropriate technical helpis used to solve any operational problems

2.Process transactions within the system2.1.Input data is collated,coded and classified before processing2.2.A wide range of cash and credit transactionsare processed in both a service and trading environment2.3.The general journal is used to make any balance day adjustmentsfor prepayments and accruals2.4.System output are regularly reviewed to verify the accuracy of data input and adjustments made for any detected processing errors2.5.An end of financial year rollover is performed

3.Maintain the system3.1.Any new general ledger accounts, customer, supplier,inventory and fixed asset records are added as required3.2.An existing chart of accounts, customer, supplier, inventory and fixed asset records and subsidiary accounts are maintained and updated3.3.The chart of accounts is customised to meet the reporting requirements of the organisation

4.Produce reports4.1.Reports to indicate the financial performance and financial position of the organisation and for GST purposes are generated as required or requested4.2.Reportsto ensure that subsidiary ledgersand accounts reconcile with the general ledger are generated4.3.Reports, which ensure that the bank account reconciles with the bank statement, over at least two reporting periods are generated

5.Ensure system integrity5.1.Regular back-ups of the system are made to ensure against loss or corruption of data5.2.Data are restored from back-ups in the event of loss or corruption of current data5.3.A secure record of all processed transactions is maintained for audit purposes