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Developing an Accounting System
by ·
Good accounting systems do not just happen. They are carefully planned, De- signed, installed, managed, and refined. Generally, developing an accounting, system involves the following four phases:
1. Analysis. The starting point of analysis is to determine the information needs-of internal and external users. Once this is established, the system analyst development of proceeds to identify the sources of the information and the records and pro- accounting system procedures for collecting and reporting the data. If an existing system is being analyzed, its strengths and weaknesses must be identified.
2. Design. For a new system, forms and documents must be designed; methods and procedures selected from alternatives, job descriptions prepared; con troll integrated; reports formatted; and equipment selected. Redesigning an existing system may involve only minor changes, a complete overhaul, or replacement of a manual system by a computerized system.
3. Implementation. Implementation of either new or revised systems requires that documents, procedures, reports, and processing equipment must be in stale and made operational. Personnel must be hired, trained, and closely supervised through a start-up or transition period.
4. Follow-up. After the system is up and running, it must he evaluated and monitored for weaknesses and breakdowns. Also, its effectiveness and efficient must be compared to design and organizational objectives. Correction in design or changes in implementation may be necessary.
