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Formulating Accounting Systems and Procedures


The system that collects and processes transaction-data and disseminates financial information to interested parties is known as the accounting system or accounting information system. This system includes every step of the accounting cycle.
An ideal accounting system does not come into force automatically. It is to be very much carefully planned, designed, arranged, managed and modified. With our expertise, we can help you formulate stringent systems and procedures. A little insight into how we will help you establish this.

Design
For formulating a new accounting system designing of forms and documents, sorting of the method and working process, preparing a statement of work, collecting techniques of control, preparing reports and selecting equipment are necessary.
Slight changes are required for redesigning existing accounting information system.

Implementation
For the implementation of a new or modified accounting information system, necessary documentary evidence of information, the process of methods and installation of necessary equipment, etc. are to be activated.
Employees concerned are to be given training and they are to be monitored closely.

Follow-up
After the implementation of the accounting information system and making it workable, its weakness and breakdown are to be monitored very closely and its effectiveness and design are to be compared with organizational objectives.
If needed changes are to be brought in its implementation process of design. The above-mentioned steps represent the life cycle of an accounting information system. This suggests that some accounting information systems are always unchangeable.
But the expansion of knowledge, experience and technology and occurrence of organizational changes might create and change the accounting information system.