ACCOUNTING SYSTEM SET UP MASTERY SKILLS Every professional accountant must be able to set up an accounting system for different types of business. WHAT IS ACCOUNTING SYSTEM? This is the act of recording business transactions in a systematic manner, analyzing what is recorded and bringing out reports that will help businesses make useful business decisions and planning. Accounting system can be manual or computerized. Due to the overwhelming advantage of computerized systems, it is advised that accounting systems should be computerized and cloud based. The cloud-based feature helps not to lose your document even if you lose your system. ACCOUNTING SYSTEM INVOLVES THE FOLLOWING: CREATION OF RELEVANT BOOKS OF ACCOUNTS : these books of accounts include invoice, receipts, stock card, payslip,, payment voucher etc CREATION OF RELEVANT ACCOUNTS FOR REPORTING: The following accounts can be created; petty cash schedule, cash book schedule, fixed asset schedul...
LEARNING HOW TO SET UP CHARTS OF ACCOUNTS IN PEACH TREE (SAGE 50) BELOW IS THE DIAGRAMMATIC REPRESENTATION THE DIAGRAM ABOVE IS EXPLAINED THUS: The chart of accounts of an organization is the various ledgers created to capture accounting transactions as it relates to assets, liabilities, incomes, expenses and equity. It enables easy classification of transactions under accounting heads to help in proper reporting. An example of setting up a chart of accounts is creating an expense account called Diesel Account for capturing all diesel expenses of a company. The process is below: 1. CLICK Maintain Menu 2. CHOOSE Chart of Accounts 3. TYPE the Account ID (You can use the drop-down list to help create number for your account type: For instance, Account ID for ex...