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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:

  1.  CREATION OF RELEVANT BOOKS OF ACCOUNTS:  these books of accounts include invoice, receipts, stock card, payslip,, payment voucher etc

  2. CREATION OF RELEVANT ACCOUNTS FOR REPORTING:  The following accounts can be created; petty cash schedule, cash book schedule, fixed asset schedule, general ledger, suppliers ledger, customers ledger, profit and loss statement schedule, salary schedule, balance sheet.

  3. INTERNAL CONTROL SYSTEM.  As a professional accountant, you must put control measures that will be zero tolerance to frauds and errors in the organization

  4. TAX SYSTEM SET UP:  The organization must track and pay the tax due to relevant tax authorities as at when due.   The PAYE, withholding tax and Value-added tax remittance and the ability to work effectively with tax authorities.

  5. ACCOUNTING MANUAL PREPARATION:  A professional accountant must also be able to produce an accounting manual for a business organization detailing all the accounting system processes.

Most of the accounting systems have been made easy through the use of accounting softwares.  The Peach tree Accounting or now called Sage 50, Sage Evolution, Tally, QuickBooks accounting.  So the professional accountant must be able to use major accounting softwares.

Knowledge of Excel:  The professional accountant must be familiar with the use of excel to an advanced level, because with Excel, you can create different accounting templates.  Make Youtube your friend.  There are lots of free resources to advance your skills in excel.

We shall be posting valuable information that will help professional accountants upskill and help businesses around them.

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