Accounting systems.

Definition: An accounting system is an organized structure through which a company's information

is collected as a result of its operations, using resources such as forms, reports, books, etc. and that
presented to management will allow them to make financial decisions.

Importance: Accounting systems are important because currently almost all companies require the
use of them in their accounting processes.

Accounting Systems

An accounting reporting system must cover at least the following elements and not some of them in
isolation.

* Hardware where information is processed

*Software itself

* Human Resources

* Accounting policies and standards adopted by the entity.

Financial information is the basis for making decisions in different areas of the company. So,
depending on the system and how it functions, the accounting report will be easier to obtain and
process.

Search for the functioning of an accounting system: data entry, data valuation, updating of records,
issuance of reports.

An accounting system is the center around which most financial decisions are made. An accounting
system should be approached as an information system that gathers and presents summary or
detailed data about the economic activity of a company as of a date or for a given period of time.

The main tasks carried out by an accounting system are the following:

* Data entries.

* Data validation.

* Update records.

* Issuance of reports.

1) Data Entry: it is done through the receipts. Each voucher contains two or more records, whether
debits or credits. These records are called journal entries, thus a journal voucher is made up of at
least two or more journal entries. Journal vouchers can be of two types: manual and mechanized.

Manual: A manual receipt necessarily implies that the records made in it are formed or validated
through the entry of data into a data capture terminal.
Mechanized: This implies that a magnetic storage medium must be used to transfer the records
contained in the journal vouchers, either via floppy disks or magnetic tape.

2.) Data Validation: Data validation verifies that the data entered complies with certain parameters
previously established for data control. An important aspect of any accounting system is to ensure
that controls over data integrity do not fail. The main problem that can be found in an accounting
system is that it does not capture all transactions: it could be said in terms of risk, that there is little
confidence that the figures revealed by the financial statements are reasonable and correct.
3.) Update of Records: The update of records consists of the transfer of the movements of the
general journal to each of the ledger accounts. Updating records can be done in two ways:

* Interactively: This causes the journal movements to be recorded at the time the operator is
recording the details of each of the transactions.

* In batch: Data is accumulated, validated and then updated.

4.) Issuance of Reports: The issuance of reports is one of the main functions of an accounting
system and consists of the processing of accounting information that has been recorded, validated
and updated. Accounting software must have the facility that allows the accountant to design the
structure of their reports. Every report must have totals, title and header of the report, monetary
units.

There are programs that include the option of financial indices, which are calculated based on the
balances presented by the accounts on a given date. Some of the most common indices are:
solvency, acid test, CXC rotation, inventory rotation, among others. others. There are also many
that allow the issuance of bar, line, point and other graphs, in which it is convenient to clearly explain
the content of the graphs and their meaning.

Information processing consists of performing the following operations in a system:

Data input, processing, data storage, output and maintenance operations.

Batch processing

Also known as BATCH processing, it is characterized because transactions are grouped into batches
and stored for later processing and/or processing.

This was the first method of information processing that originated, the first accounting systems that
used computers received information through the missing punch cards and the accounting records
were recorded in locations that were physically distant from the place in which the information was
centralized and processed. . Currently this system is only justified in cases where it is greater
cost/benefit due to the development of telecommunications.

Interactive processing

This is a way of processing information in a computer system that consists of immediately updating
the information in the data files.

Its greatest advantage is the rapid response capacity that the system has when entering specific
data. Through this system, the moment an account is affected, at that moment the ledger balance is
updated.

These systems are also called ON-LINE or online systems. One of the factors that has most
influenced their increase is the use of terminals or screens with which you can immediately interact
with the information stored on the computer.

In an interactive system, operations are recorded and updated at the time they are carried out, so its
greatest advantage is the response time compared to batch systems.

Independent Systems.

Administrative systems have satisfied a large number of information requirements, within the
company automation process.
A system that works perfectly in one company does not guarantee that it will work the same way in a
completely different company, even if it has basically the same functions. In the computerized
systems market, there are different types of accounting systems with different characteristics so that
management can choose the one that best meets their requirements. Within these are independent
systems.
An independent system is characterized by processing information individually and sharing and/or
transferring information with another system. The transfer of information in an independent system
can be done in two ways:

1) Manually: when done manually, each independent module must generate, at the end of each
month, a summary list of the information to be transferred to the accounting system.

2) Mechanized: the accounting record does not vary and is the same as the manual one, the
difference occurs because the medium by which the data is transferred is, generally, a floppy disk or
magnetic tape.

Data encryption

Coding systems identify, through the use of symbols such as letters and numbers, elements of a set
or subsets and relate them to other elements.
The factors to consider for the selection of a certain coding method are: the chosen system must
comply with the information processing and the second term.
1.2.1 Basic characteristics of a coding system: precision of the
Code, flexibility, concise, meaningful, operability.

Coding systems must meet a series of characteristics, in order to be adopted as a processing

method for information. Within these we can mention the following: code precision, flexibility, concise,
meaningful, operational.

* Code precision: It means that each element must accept only one correct encoding.

* Flexibility: It must allow accepting more elements if necessary.

* Conciseness: No additional codes that are not relevant to identifying elements should be added.

* Significance: Each element must indicate some characteristics, differentials of the coding.

* Operability: It must facilitate the handling of the codes by a computer system.

Coding systems: sequential, block, group, alphabetical, numerical, mnemonic, check digit,
consonant, phonetic, bar.

* Sequential Coding: It consists of the consecutive assignment of a number to a list of elements.

*Block coding: codes are assigned consequentially but in consecutive blocks.

*Group coding: sequential coding that subdivides successive classifications.

*Alphabetical Numerical Coding: an alphabetical code is assigned together with a numerical code
that takes into account the characteristics of the element to be encoded.

*Mnemonic Coding: Combination of numbers and letters to identify each of the elements by various
characteristics.

* Check digit encoding: consists of adding a number or letter to a sequence of characters based on
an algorithm.

*Consonant Coding: consists of eliminating all the vowels after the first letter of the word.

*Phonetic coding: Encodes elements according to their sounds.

*Bar Coding: Assignment of lines and spaces of different widths that are printed on a product for
identification.
Characteristics of an accounting code.

Every accounting code must be designed under certain parameters that allow it to comply with the
information requirements requested by users. It must be designed in such a way that it meets the
objectives of accounting, always adjusts to the specific needs of the company, and also covers
special circumstances and individual cases that may arise. The accounting code is the main structure
of an accounting system that allows generating optimal and relevant information.

The characteristics of an accounting system are:

* Flexibility: An accounting code must allow adding new classifications or details.

* Adequate classification: An accounting code must be classified in accordance with accounting

standards.

* Hierarchical: The accounting code must establish subdivisions for each of the groups and
subgroups that make up the financial statements.

* Clarity in the descriptions: An accounting code must clearly explain the title of each of the accounts
that comprise it.

Design of an account code.

To prepare the accounting code of a company, the accountant must follow a series of minimum steps
in order to prepare the structure of the accounts.

Step 1: Specify or assign numbers to the general groups of items, both on the balance sheet and the
profit and loss statement.

Step 2: Define or specify the accounting code format in digits and levels. This definition will always
be subject to the flexibility of the accounting software being used, and to the definition of the account
parameters.

Step 3: Once steps 1 and 2 have been completed, we must begin to develop the accounting code
itself, in accordance with the classifications given by accounting theory and the information needs of
the company.

Each classification can vary in the degree of level of detail. Each company can adapt the
classification that is closest to the nature and objective of its transactions, however, it must be taken
into account at all times that the accounting code must correspond to the characteristics and nature
of each of the items.

Relationship of coding with mechanized systems.

Coding methods allow you to properly classify all operations, details, transactions and lists of items
that are handled by an accounting system.
A mechanized accounting system can produce information organized according to user
requirements. Before being recorded, all transactions must be classified in order to be sorted;
Previously, it must have been defined which coding methods will be used in the classification
process.

Accounting Forms and Records

Forms are all those documents where the financial information of a company is recorded.

Importance of controlling the forms: cash area, purchasing and inventory area, personnel area,
distribution and marketing area.
For every company it is necessary to create a plan that allows it to control the forms and the
information contained therein, for several reasons:

*Forms designed by hand and reproduced by photocopiers.

*Authorizations in the body of the form that are not understood.

*Omission of important details to process the information, such as: date, person initiating the
transaction or authorizations, lack of pre-enumeration, forms with reduced or inadequate spaces.

*Errors in filling out the forms, due to poor explanation of the fields.

*Uncoded forms.

*Little aesthetics in the design of the shapes.

*Forms in which the identification of the company to which it corresponds is missing.

1.) Cash Area.

Requires controls to be put in place to prevent fraud or unauthorized dispositions. To control cash we
can divide it into two types of operations:
Cash Income: constituted by the amounts that a company receives for different concepts.

Cash expenditures: consisting of all disbursements necessary for the acquisition of goods or receipt
of services.

Some of the forms used to control cash receipts and disbursements are the following: cash vouchers,
petty cash receipt, replacement of fixed funds, payment order, cash registers of fixed funds, deposit
sheets, notices of returned checks, movement cash journal.

2.) Purchasing and Inventory Area.

The company must be able to determine how much, when, from whom and under what conditions
acquisitions should be made that allow the company to take goods and services under the best
conditions.

The main forms applicable for purchasing and inventory management are the following: Materials
requisition, purchase orders, entries to the warehouse, exit from the warehouse, inventory cards,
merchandise delivery notes.

The receipt report captures information regarding the goods and services received and their
conformity.

3.) Personnel Area.

It annexes and controls the company's personnel, its data, its entry, exit, evaluation, and all related
activities. Among the forms used to control personnel management are: Employment application,
worker permanent, payment receipt, vacation planning, employment contract, personnel evaluation,
personnel requisition, settlement of benefits, attendance control, time card.

4. Distribution and Marketing Area.

Distribution and Marketing Area. It is related to the entire sales process. Some of the forms used in
this area are: goods delivery note, invoice, order, transfers between warehouses, quotes, seller
report, invoice counts.

1.3.2Techniques for designing forms: characteristics of forms, classification of forms, design of

forms.
There are numerous techniques and tools that must be used for the design and preparation of forms,
all depending on the needs of each type of company.

A) Characteristics of the Forms.

The forms are designed according to the needs of each business, among the characteristics that
every form must have are:

*Simplicity in its design.

*Each form must be designed for a specific procedure.

*The order in which the information is requested must be done in the same sequence in which the
data is generated.

*The same employee should not validate two forms that, for internal control reasons, are
incompatible.

*Copies must be made and distributed only to those departments that manage the information they
contain.

*Pre-listed forms must be established.

*Forms must have adequate spaces for approvals and authorizations.

* Every form must be coded, under some scheme in such a way that an identification or association
of the format to a specific function or area can be achieved and the last review date is explained.

B) Classification of Forms:

The forms can be classified:

1) According to their presentation they can be:

*Simple: These are those that are represented by a single form and that do not have attached
copies.

*Composite: These are those that have more than one sheet and are prepared based on a
predefined format and under a special storage or filing scheme.

2)According to their use, they can be:

*To original an action: They begin the process or procedure of a group of tasks with a certain
common objective.

*To record an action: They store information that may be required later.

*To report results: They show figures or analysis of processes that are standardized.

3) Depending on their preparation, they can be:

*Manual: They are filled completely manually.

*Semi-mechanized: One part is taken and part is machined.

*Mechanized: Its preparation is carried out entirely by a computer.

C) Form Design:

Every form must follow a series of basic principles for its design; these principles must take into
account the aspects of functionality and efficiency of the procedures involved.
Every form must contain at least the following principles: ease of filling out, reduction of the possibility
of error, aesthetics, cost review.

The parts that comprise a form are:

-Header: Must contain title, number and date of preparation of the form.

Main body: contains the main and relevant information to process the format.

Observations: Information that is considered necessary to elaborate and clarify any doubts regarding
the information.

Authorizations: Fields for the people involved to give their authorization regarding the processing of
the information.

Design of a forms system: form inventory, form analysis, form classification and form coding.

A forms system comprises all the sub-practice formats, standards and rules that govern the
management of written information, through documents in the organization. To design an adequate
forms system we must consider the following stages: Forms Inventories, Forms Analysis, Forms
classification, Forms coding.

A) Form Inventories.

The form inventory is a list of all forms that are managed in all departments. The list of forms should
contain both those that are formally designed and those that have been made in an informative
manner. To carry out this inventory, the following parameters can be considered:

*By area or sections: The general structure of the organization chart must be taken into account and
begin to classify the forms based on the structure of the organization.

*By sizes: Corresponds to a physical characteristic of the documents, in which case they must be
classified by their dimensions.

*For any physical characteristic: The type of paper, the colors, or whether or not they have
removable parts will be considered physical characteristics. * Formal and informal: Under this
scheme, the forms that have been in use have some code, and at least they are pre-printed, will be
considered formal. On the contrary, all those that were done with paper and pencil should be
classified as informal.

B) Form Analysis.

Once all the forms that are being used in a formal or informal manner have been collected, their use
must be evaluated. A form consists of two parts from the point of view of the information it contains:
printed or fixed information and variable information. or to fill.

When analyzing a form, you may encounter situations in which only one person completes and
approves the information on the form. It is also necessary to relate it to the procedures to which they
are associated. After performing an analysis of the forms in the organization, this work should lead to
one of the following decisions: forms to be eliminated, forms to be combined, redesign of a form,
creation of a form, and continuation of the form.

C) Classification of Forms.

The classification of forms is a process through which forms are grouped based on specific criteria.
These criteria can be:

*Based on the company's organizational chart: In this way we can have forms classified by each of
the areas in the organization structure.
*Based on the degree of intervention of a computer: Under this scheme the forms can be classified
taking into account the use of a computer for their preparation.

*Based on its size: the measurements are established based on the standards established by ISO,
an international organization for standardization. Also the measurements of a form are established
based on purges of both width and height.

*Based on their purpose: These must be located taking into account the objective for which they
were designed.

* Based on number of copies: Forms are grouped as the name specifies based on the copy that each
form contains.

*Combination of the above: In this all those mentioned before are combined.

D) Form Coding.

Once the shapes are classified, they must be coded based on the methods studied. The most used
methods to encode forms are:

1) Mnemonic method.

2) Block method.

3) Alphanumeric Method.

Accounting systems by area of responsibility

One of the main objectives of an accounting system is to control the operations of a company and
this control is carried out through the separation of the organization into centers or areas of
responsibility; This separation is in turn fulfilled with the application of costs and expenses of the
departments shown in an organizational chart.

This system defines the units of the organization as cost centers, profit centers or investment
centers. Its main objective is to evaluate the performance of employees in the organization.

Main areas of a company.

Areas of responsibility are defined. take into account the use of a computer for its preparation.

*Based on its size: the measurements are established based on the standards established by ISO,
an international organization for standardization. Also the measurements of a form are established
based on purges of both width and height.

*Based on their purpose: These must be located taking into account the objective for which they
were designed.

*Based on number of copies: Forms are grouped as the name specifies based on the copy that each
form contains.

*Combination of the above: In this all those mentioned before are combined.

D) Form Coding.

Once the shapes are classified, they must be coded based on the methods studied. The most used
methods to encode forms are:

1) Mnemonic method.

2) Block method.
3) Alphanumeric Method.

Accounting systems by area of responsibility

One of the main objectives of an accounting system is to control the operations of a company and
this control is carried out through the separation of the organization into centers or areas of
responsibility; This separation is in turn fulfilled with the application of costs and expenses of the
departments shown in an organizational chart.

This system defines the units of the organization as cost centers, profit centers or investment
centers. Its main objective is to evaluate the performance of employees in the organization.

Main areas of a company.

Areas of responsibility are defined as a set of activities that are carried out by a group of employees
or people in the company.

These areas are reflected in the organization's organization charts or graphs, in which common
areas are observed.

To establish the system by area of responsibility in the organization, there must be goals and
objectives to measure its performance.

When we separate the activities of a company into areas or departments, in addition to pursuing the
objective of assigning responsibilities for the fulfillment of the different activities, we are also
interested in being able to determine the costs and expenses for each department to determine the
contribution of each one to the total profit.

These areas have their own activities, not separated from each other because their activities are
complementary.

Example: Production depends on finance to operate and finance from the commercial area to obtain
resources and the latter depends on production to obtain the products or services to be sold.

Responsibility centers.

The center of responsibility can be defined as the grouping of several employees and their activities
in a homogeneous way, so that everyone acts towards a common goal or objective.

In this way, different responsibility centers can be defined in a company depending on the division or
organization that is established through the organizational charts.

Example in the accounting area

*Tax accounting

*Payroll accounting

*General Accounting

*Income accounting

*Liability accounting

*Cost accounting

From where the general accounting center is subdivided into:

*Financial reports
*Assets and investments

*Bank reconciliation

Demonstrating the flexibility of this concept.

A structure of responsibility centers and their accounting, within an organization could be formed by:
Cost Center, profit center and investment center; All this thinking about providing managers with
optimal information for decision making, which is effective in achieving objectives and efficient and
economical in obtaining and using resources, thinking about increasing the profits or productivity of
the company.

Cost center. You are only responsible for the costs.

It is defined as a unit or group of units that are characterized by accumulating only costs.

Departments or units that are considered cost centers typically have activities that support and assist
a function related to the areas of responsibility.

The name "Cost Center" is applied not only to production cost centers but also to discretionary or
service cost centers, whether research and development, IT, sales or administration, because the
purpose pursued is with the establishment of the greatest possible number of "Cost Centers" is to
maintain effective control, not only of production, but of all those aspects that have to do with the
proper functioning of the company.

For its evaluation, it is convenient to compare the actual total costs with: Total budgeted costs.
Standard total costs.

Actual total costs from previous periods. Actual unit costs of other departments or plants.

Utility Center. He is responsible for costs and income.

This goes beyond the concept of costs because apart from controlling these, they are also
responsible for the income generated by the utilities.

It is a Responsibility Center whose manager partially or totally controls those variables linked to sales
and costs, which allow greater or lesser profit. Therefore, your financial responsibility is not to
maximize income by selling more units or minimize costs, but to make the center's profit profitable.

Its management is evaluated on its results: Evaluation of the performance of the operating decision is
through the income statement, since it presents in summary form the results of the companies'
operations. A common way to evaluate profitability in relation to sales is the income statement in
percentage form, where each line is expressed as a percentage of sales, thus allowing the
relationship between sales, expenses and profits to be easily evaluated.

Investment center. He is responsible for costs, income and investments.

This is measured by the profit it generates and by the investment that is necessary to produce the
profits.

An investment center is a responsibility center in which management is responsible for sales, costs
and the necessary investment in assets. To analyze the performance of an investment center,
several measures are used, starting from the income statement and the balance sheet.

Design of an accounting system by areas of responsibility.

Your design must consider the following steps:

*Design of the accounting code

*Establishment of control measure

*Evaluation and monitoring

Accounting code design

This consists of assigning an appropriate classification to each of the accounts of an accounting code
so that it can be used as a control measure and performance evaluation.

Control measures

They are established to ensure that the objectives set are being met in accordance with what was
initially planned.

Another control system consists of the preparation of execution reports, which are comparative
analyzes prepared by managers, to show the development of the business and evaluate the goals
achieved.

Cost accounting systems

A cost accounting system is a set of related elements that produce information regarding the entire
production process of a company and its valuation.

This is made up of the records, procedures and computer programs that serve to routinely control all
the information generated and derived from the production processes.

Its objectives are:

*Determination of current costs

*Planning future profits

*Analysis of the costs of goods and services

Determination of current costs refers to the entire process that is followed to determine the real costs
of manufacturing a good or providing a service for a period.

This process is achieved through the implementation of an accumulation accounting system in which
all the information generated from the production process is recorded, in a systematic and organized
manner, and which involves all those elements that are transformed or not and that make up the cost
of the good or service.

The second objective refers to the fact that a cost system must generate information that serves to
project the expected profits of future economic years and that they must be estimated based on the
reliable information provided by the cost system.

The third objective consists of the comparison against some valid and previously determined
parameter to verify the validity of the current costs generated by the accrual accounting system.

Cost systems for different types of companies.

Industrial companies are those entities for which the cost activity is determined by the application and
transformation of the three elements of cost: raw materials, labor and indirect manufacturing costs. In
this type of company, the management of inventories of finished products, in process and raw
materials and supplies represents a critical aspect from the point of view of the financial statements.

Service companies are characterized by applying to the cost of their product, labor (generally
specialized) and indirect costs related to the provision of the service. Your cost control is complicated
by the controls that must be established for determining current costs for a period.
Commercial companies have costs represented by the purchase value of the goods that are sold or
marketed and any other costs that are attributable to the purchase of goods available for sale.

Standard Cost Accounting Systems

Every information system consists of three elements:

Cost software: programs in which the entire manufacturing process of a good or the provision of a
service is managed in a mechanized manner.

Manual and mechanized controls of the cost system: these are all the controls incorporated in the
production process and in the cost system or software.

Procedure for managing costs: these constitute the different steps that must be carried out for each
of the cost operations and that are related to the accounting records.

A standard cost system is an accounting method that determines costs before beginning the process
of manufacturing a good or providing a service and that consists of establishing a standard cost
value for each of the cost elements.

Its elements are:

*Quantity standard

*Price standard

Quantity standard corresponds to the quantity necessary for each of the manufacturing cost
elements that are necessary to produce a unit or batch of finished products.

Pricing standard

It corresponds to the value assigned in monetary units to each of the elements of the manufacturing
cost and that is necessary to produce a unit or batch of finished product.

There will be a standard cost for the elements: raw materials, indirect labor and indirect
manufacturing costs.

Design of the accounting code for a cost system.

For this, its main accounts are:

*Inventories

a.Finished product

b.In process

c.Raw material

d.Materials and supplies (indirect costs)

*Costs

a.Sales costs

b. Real indirect

c. Applied factory load

d. Variations
Step One: First specify or assign numbers to the account groups on both the balance sheet and the
profit and loss statement.

Second step: Define or specify the format of the accounting code in digits and levels.

Third step: Once steps 1 and 2 have been defined, begin to develop the accounting code itself.

Price variations are formed by the difference between standard and actual costs for each of the cost
elements of a product.

Quantity variations are formed by the differences between the units according to the pre-established
standard and the units actually applied to production.

Conclusion

Carrying out this work has been of great importance for our group since through it we have had a
great comprehensive knowledge about what an Accounting System is, which gives us information
about the financial situation of a company since it is based on a set of interrelated elements that
collects data, processes it and converts it into information, which is stored and subsequently made
known to its users or managers.

We can conclude by saying that since its origins, man has insisted on having total control of all the
financial movements carried out in a company, regardless of its size or classification. So at first I use
very simple processes manually to keep your accounting information, however accounting in this
century is influenced by three variables: technology through the impact generated by the increase in
the speed with which generate financial transactions through the Internet. The second variable of
complexity and globalization of business requires that accounting establish new methods for the
treatment and presentation of financial information. The last variable related to training and education
requires that future managers master the language of business.
Thanks to these variables we can affirm that the process of counting and recording financial data is
developed in a simpler way and following the principles already established to execute business
accounting but in an automated way.

The role of the organization's accounting system is to develop and communicate this information. To
achieve these objectives, computers are used, as well as manual records and printed reports or
forms; It includes methods, procedures and resources used by an entity to keep track of financial
activities and summarize them in a manner useful for decision making.

Exercise 08-01 Choice of systems

It is common to hear companies complain about the functioning of their administrative systems. One
of the many complaints heard is that the systems do not provide the information that was originally
offered. This situation happens because when developing or purchasing systems, the needs of the
end users are not clearly defined. Many times, the supposed benefits of a system are exalted by the
manifest credulity of the managers responsible for making decisions in the area.

Questions

a- According to your experience, list, detail and discuss the factors that must be taken into account to
evaluate a mechanized accounting system.

When we buy or develop an accounting system we take several things into consideration, including:

1- If it is suitable for the type of company and its dedication or area of development.

2- The type of account that the company should use, flexibility of the account catalog

3- The preparation of books for the records of financial operations, that is, the journal, ledgers,
auxiliary journals.
4- The preparation or design of the documentation to be used by the company, call it; invoices,
income receipts, purchase orders, invoices, leads, debit note, credit, payroll, etc.

5- If it complies with the company's internal control standards, as well as the accounting area.
Example: Payroll control measures, accounting books and personnel.

6- Inventory control.

7- The preparation of financial statements.

When we evaluate an accounting system we must verify the processes carried out in the company,
with the purpose of improving more appropriate methods and procedures.

Another thing we take into consideration when developing a mechanized accounting system is the
design and analysis of the system, as well as its programming.

Mechanized systems are made up of: hardware, software, storage media, databases, the application
of the systems are the procedural programs. For example, application to accounting, operations,
among others, and the general integration of the company, translated into its accounting and its
different activities.

b- Prepare a checklist to evaluate an accounting system

A checklist is a form that has all the data of a company related to: its company name, physical
location, commercial/industrial activity, number of employees, equipment, capital, general data, etc. It
is supplied by the person who is going to install the accounting system.

Check list

*Organization and classification of the company

A-1 Company name and address

A-2 Branches and Agencies, name and address

A-3 type of business they do

A-4 Type of sole proprietorship or business

1 Joint stock company

2 Simple Limited Partnership

3 Composite Limited Partnership

4 Joint venture

5 Sole owner business

A-5 Partners

A-6 Board of Directors and other officials and officers

A-7 History of capital

1 Original Investment

2 Subsequent Investments

3 Capitalized Earnings
A-8 Basis of distribution of profits and losses

A-9 In case of joint stock company

1 Share class

2 Number of shares of each class

3 Par value of shares in each class

4 Shares of each class circulating

5 Authorized capital

A-10 Company records

A-11 Persons responsible for these records

A-12 Place where records are kept

A-13 Fiscal year ending date

*Functional and departmental division

B-1 Functional division

B-2 List of company departments, accompanied by

Main transactions carried out in each department.

B-3 Form for each department

B-4 Personnel of each department

B-5 Location of each department

*Books and records used or to be used

1 Original entry

2 Secondary input

*Account code

1 Number or letters or numbers and letters combined

2 Classification of accounts in the code

*Reports and statuses

1 Balance Sheet

2 Income Statement

3 Etc.

*Mechanical equipment to be used

.1 Adding machine

.2 Calculating machines

.3 Loading and normalizing machines

4 Etc.

* Administrative control over operations

1 Cash receipts and disbursements

2 Inventories

3 Accounts receivable

4 Cost

5 Expenses

6 Payroll

7 Accounts payable

8 Investments

9 Fixed Assets

10 Budgets

11 Internal Audit

*Accounting department

1 Staff

2 Registration system

3 Mechanical equipment

4 Conditions of the premises

5 Temperature in the premises

Bibliography

Accounting systems and procedures, Fernando Catacora, Mc Graw Hill publishing house.
Francisco, Notes on Accounting Systems. Lipalies, Dominican Republic. 1997 1st edition