1. The Steps of the Cycle :
1. Collect and analyze data from transactions
and events
2. Journalize transactions
3. Post to general ledger
4. Prepare an unadjusted trial balance
5. Prepare adjustments
6. Prepare an adjusted trial balance
7. Prepare financial statements
8. Close the accounts
9. Prepare a post-closing trial balance
4. • General Ledger - is a labor saving device for the preparation of financial
statements and for establishing multiple income and cost entries
• Accounts Receivable - when computerized, can get your bills out the same
day you’ve performed a service. An accounts receivable module prepares
invoices and customer accounts, adds credit charges where appropriate,
handles incoming payments, flags your attention to customers that are
delinquent, and produces dunning notices.
• Accounts Payable - when computerized, will provide for purchase order
control, invoice processing, payment selection and handling, check writing
and control, cash-requirements, forecasting, and Form 1099 preparation
• Inventory Control - this module has multiple functions, including tracking
inventory for both costing and tax purposes, controlling purchasing (and
the overall level of expenditure) and minimizing the investment in
inventory (and subsequent loss of cash flow)
5. • Point of Sale - module captures all sales information at (or in place of) the cash
register, including salesperson, date, customer, credit information, items, and quantity
sold. It can produce sales slips or sales invoices, plus it reports on items, customer, and
salesperson activity.
• Purchasing and Receiving - module can represent an invaluable addition. It can
generate purchase orders and track their fulfillment. You can find out which vendors
are delivering on time and saving you the expense of having to follow up on partial
and incomplete orders.
6. Computerized processing systems
Accounting software: Once the initial journal entry is prepared, the data are merely being
manipulated to produce the ledger, trial balance, and financial statements.
How much does it cost:
Many companies produce accounting software. These packages range from the
simple to the complex. Some basic products for a small business may be purchased
for under $100. In large organizations, millions may be spent hiring consultants to
install large enterprise-wide packages. Recently, some software companies have
even offered accounting systems maintained on their own network, with the
customers utilizing the internet to enter data and produce their reports.
7. What do they look like: As you might expect, the look, feel, and function of software-based
packages varies significantly. Each company's product must be studied to understand its
unique attributes. But, in general, accounting software packages:
1. Attempt to simplify and automate data entry (e.g., a point-of-sale terminal may actually
become a data entry device so that sales are automatically "booked" into the
accounting system as they occur).
2. Frequently divide the accounting process into modules related to functional areas such
as sales/collection, purchasing/payment, and others.
3. Attempt to be "user-friendly" by providing data entry blanks that are easily understood
in relation to the underlying transactions.
4. Attempt to minimize key-stokes by using "pick lists," automatic call-up functions, and
auto-complete type technology.
5. Are built on data-base logic, allowing transaction data to be sorted and processed based
on any query structure (e.g., produce an income statement for July, provide a listing of
sales to Customer Smith, etc.)
6. Provide up-to-date data that may be accessed by key business decision makers.
7. Are capable of producing numerous specialized reports in addition to the key financial
statements.
8. Overview of Accounting Information
System
1. The Information Environment
2. Organizational Structure and Accounting
Information System
3. The Role of Accountants in Accounting
Information System
4. Task Performance and eLMS
T h e Information Environment
Organizational Structure and Accounting Information
S
y
s
t
e
m
T h e Role of Accountants in Accounting Information
System
T a s k Performance and eLMS
9. THE INFORMATION ENVIRONMENT
Operations
Personnel
Provide day-to-day
operations information
Directly responsible for day-
to-day operations
Middle
Management
Accountable for short-term
planning and coordination of
activities
Top Management
Responsible
for longer-
term
planning and
setting
organization
al objectives
Operat
ions
Management
Day-to-Day Operations Information
Stakeholders
Customers
Suppliers
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10. Three (3) Fundamental Information Objectives
• Support the firm’s day-to-day operations.
• Support management decision-making.
• Support the stewardship function of management.
THE INFORMATION ENVIRONMENT
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13. THE INFORMATION ENVIRONMENT
Sources of
Data
Data
Collection
Data
Processing
Information
Generation
External
End Users
Internal
End Users
Internal
Sources of
Data
Database
Management
The Information
System
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Feedback
The Business
Organization
The
General
Model of
Accounting
Information
System
(AIESx)ternal
15. Part two:
The Flow of Information here is vertical since it flows from lower-level employees
(the average office employees) to high-level employees (top executives).
V
H
V
V
H
17. THE ROLE OF ACCOUNTANTS IN
ACCOUNTING INFORMATION
SYSTEM
Accountants as System Designers
Accountants as Systems Auditors
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18. TASK PERFORMANCE
Why is it structured that way?
Are those functional areas enough to meet
all the business requirements?
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Hinweis der Redaktion
Assets
Assets in accounting are resources that a company owns and uses to generate income and future economic benefits. They can be classified as operating or nonoperating, tangible or intangible, and current or noncurrent.
Liabilities
Liabilities are amounts owed to other persons or entities as a result of a past event and involve a future settlement using cash, goods, or services. Customers and vendors can be sources of liabilities for operations. Paying taxes, fees, permits, and salaries are liabilities once they become due but aren’t yet paid. Businesses use their assets to pay liabilities.
Owner’s Equity
Owner’s equity is the residual interest or amount that assets exceed liabilities. It also represents the amount of paid-in capital and retained earnings as a result of doing business for profit
