country
$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

Using Manual System Of Accounting

tag 1 Download6 Pages 1,436 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT

Question:

Discuss about the Using Manual System of Accounting ?
 
 

Answer :

Introduction

Using of manual system of accounting has become negligible after introduction of electronic software’s that have simplified the work. Still there lies doubt in the minds of the managers regarding the authenticity and complexity of this software. The discussion below has taken into consideration the benefits of implementation of accounting software. Also the report identifies the risks and limitations involved in implementation of this accounting software.

Outline the economic transactions that would take place at a small business

Economic transactions are business transactions which initiates the process of recording of financial data in the accounts of the company. Now transactions may be simple or complex. (AICPA., 2017)

Simple transactions would be the transactions such as payment for purchases, recording for cash sales, payment of petty expenses, etc. Others transactions are complex transactions which come with a series of transactions such as credit transactions, issue of debit or credit notes, recording of loans, etcetera. All the transactions however simple or however complex form an important part of accounting and must all be recorded in the books of accounts. The intensity and frequency of transactions are more in large business as compared to that of small business. Large business involve branch transfers, maintaining subsidiary accounts, off shore transactions, etc which make the whole process of transaction recording complex.

Small business also has a lot of transactions record. Few examples of economic transactions that would take place at a small business would be:

  • Cash sales and purchases
  • Credit sales and purchases
  • Sale and purchase returns
  • Payment of administrative expenses
  • Recording of capital transactions
  • Calculation and recognition of depreciation on capital assets
  • Writing off of impaired assets
  • Recognition of profit or loss on sale of investments or capital assets

Therefore, we see that though intensity and frequency of transactions are lower in small business as compared to large ones, but complexities still lie in all kinds of businesses. (Carlton and Perloff, 2005)

Outline the benefits of using an online accounting software tool.

The requirements of companies in the accounting world have become complex. In order to continue the smooth functioning of a business it is very important to carry out the accounting in a very planned and articulate manner. The small business entities generally go for manual form of accounting as there are not many transactions to record. But manual accounting involves great risk. `(Certo and Certo, n.d.)

Online accounting software tools now a day’s simplify the work of accounting along with increasing the reliability and reducing risk. There are a lot of advantages of using the online software tools. These online software tools simplify the work by flowing data in all necessary departments (Gleeson-White, n.d.). It saves time and also accuracy of data is not compromised with the use online software. These software’s help the management generate necessary reports based on which many bank release loans for the functioning of the entity. Also, the software’s help the management generate a forecast which is more like budget based on which decision can be made. Use of online software saves a lot of time and manual human labour. It helps to generate electronic invoices which helps eliminate the chances of mistake in data feeding. Online software also provides function such as ageing analysis which helps the entity collect its funds.

Therefore, we see that use of online accounting software has a lot of advantages. Also customisation of software according to ones requirement helps in cost savings.

Outline the problems Lydia and Sam face by using a manual accounting system.

In the given situation we see that Lydia and Sam are owners of a small business which is situated in four different locations, also they follow a manual system of accounting.

Manual system of accounting is generally used by small business which does not have its operations distributed to many places. Sam and Lydia have four store of eye wear and eye care business, in which use of manual system of accounting makes it difficult for them to maintain the books of accounts. (Hoffer, Ramesh and Topi, 2013)

 


There are a lot of difficulties that arise due to use of manual system of accounting. Since they have store with eye wear they would have stock of the eye wear goods. In the manual system of accounting it becomes difficult to monitor the stock flow from four different locations. Also, use of manual accounting creates a lot of burden when it comes to book keeping. One transaction needs to be recorded in many places which carry an element of risk. It also is very time consuming and requires a lot of manpower. Due to huge involvement of human labour many times important issues do not come in sight such as debtor collection, due date of payment of an expense, etc, missing these can create a financial harm to the entity. Use of manual system also makes it easier in cash embezzlement. (Hurt, n.d.)

Therefore, manual system is carries a lot of risks and also makes it difficult to execute the operations easily.

With reference to three (3) specific economic transactions that would take place at I SEE, detail how MYOB would be used and useful.

In the given situation Lydia and Sam have been using a manual form of accounting. Let us now consider the following cases in which MYOB will be useful to them:

  • Smooth movement of stock: under the manual system of accounting it becomes very hard for the stock keeper to maintain the flow of stock in four different locations. Also any shortage, losses become very hard to detect. In case the MYOB is implemented in this case then a centralised system of stock recording and movement can be maintained. Therefore, it would help Lydia and Sam save time and also help them save resources. (Micklethwait and Wooldridge, 2005)
  • Centralised data recording for all transactions: under manual system of accounting becomes hard to collect data from four different locations and consolidate them it involves too much work and also the risk of misstatements. Under the MYOB the entity will be able to store data under a centralised system and view them anytime. It would keep the data safe and accurate; also it would save a lot of manual work for Lydia and Sam.
  • Proper accounting for Sale and purchase transactions: being the business divided in four different locations the manual system records sales and expenses of their specific location. Under the MYOB system the data is stored at a centralised platform. It will help the managers to segregate the data store wise and it can show them as one entity. Therefore classification of data becomes easy. (Romney and Steinbart, n.d.) Also it would help them generate invoices which will automatically register sales and reduce multiple feeding of data in system.

Outline any limitations or risks that I SEE may face in the implementation of MYOB.

Though implementation of MYOB will be of great advantages to I SEE, Lydia and Sam may come across few risks and limitations (Walker and Madsen, n.d.):

  • Security issues: data in these software’s are generally very safely kept, but in case the passwords get to the wrong hand it might become dangerous and harm the business of the entity
  • Limitations due to automation: due to a lot of automatic transactions the system tends to automatically send payment and issue invoices. It helps to save a lot of time and labour. But if information is not properly fed then it may issue payments to wrong persons or issue incorrect invoices. (Tanenbaum, 2009)
  • Training and coping with technology: technology is dynamic and involves continuous training. Lack of proper knowledge makes it difficult to manage the software. Therefore training and keeping in pace with technology becomes a necessity.
 

References

AICPA., (2017). REVENUE RECOGNITION 2016. 1st ed. [S.l.]: JOHN WILEY.

Carlton, D. and Perloff, J. (2005). Modern industrial organization. 1st ed. Boston [etc.]: Pearson/Addison Wesley.

Certo, S. and Certo, S. (n.d.). Modern management. 1st ed.

Gleeson-White, J. (n.d.). Double entry. 1st ed.

Hoffer, J., Ramesh, V. and Topi, H. (2013). Modern database management. 1st ed. Boston: Pearson.

Hurt, R. (n.d.). Accounting information systems. 1st ed.

Micklethwait, J. and Wooldridge, A. (2005). The company. 1st ed. New York: Modern Library.

Romney, M. and Steinbart, P. (n.d.). Accounting information systems. 1st ed.

Tanenbaum, A. (2009). Modern operating systems. 1st ed. Upper Saddle River: Pearson Prentice Hall.

Walker, G. and Madsen, T. (n.d.). Modern competitive strategy. 1st ed.

OR

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2018). Using Manual System Of Accounting . Retrieved from https://myassignmenthelp.com/free-samples/using-manual-system-of-accounting.

"Using Manual System Of Accounting ." My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/using-manual-system-of-accounting.

My Assignment Help (2018) Using Manual System Of Accounting [Online]. Available from: https://myassignmenthelp.com/free-samples/using-manual-system-of-accounting
[Accessed 08 April 2020].

My Assignment Help. 'Using Manual System Of Accounting ' (My Assignment Help, 2018) <https://myassignmenthelp.com/free-samples/using-manual-system-of-accounting> accessed 08 April 2020.

My Assignment Help. Using Manual System Of Accounting [Internet]. My Assignment Help. 2018 [cited 08 April 2020]. Available from: https://myassignmenthelp.com/free-samples/using-manual-system-of-accounting.


For years, MyAssignmenthelp.com has been operating as one of the cheap assignment help providers in the USA. We are one of the best college paper writing services that keep service price minimal. We do not let the affordability of our service to hamper the standard of our work. We have separate teams of experts to provide report writing help . At MyAssigenmnthelp.com, we believe in earning credibility, so students can pay for assignments only after getting satisfied solutions. Tough assignments bother you? Trust us with your project. You will not regret paying us to write assignments for you.

Latest Accounting Samples

ACC200 Traditional And ABC Costing

Download : 0 | Pages : 8

Answer: Traditional costing Costing is the act of breaking down the costs and analysing the individual constituents and preparing a report to be submitted to the management of the company. The analysis of the costing is necessary to understand the impact of the costs on the earnings of the company and rectifying the same if there is any need. The methods to measure the overhead costs are the traditional method, activity based costing, prorate...

Read More arrow

ACC200 Traditional And ABC Costing

Download : 0 | Pages : 8

Answer: Traditional costing Costing is the act of breaking down the costs and analysing the individual constituents and preparing a report to be submitted to the management of the company. The analysis of the costing is necessary to understand the impact of the costs on the earnings of the company and rectifying the same if there is any need. The methods to measure the overhead costs are the traditional method, activity based costing, prorate...

Read More arrow

HI5020 Corporate Accounting And Exercise

Download : 0 | Pages : 18

Answer: Introduction: The financial performance of Rio Tinto, Fortis metals group, and BHP Billiton has been analyzed in the assessment. Moreover, the assessment also evaluates different segments of the annual report to determine the current financial position of the selected companies. The companies are under the Mining industry, which is one of the major contributed to the GDP of Australia. Furthermore, adequate analysis has been conducted ...

Read More arrow

ACC307 Accounting Theory

Download : 0 | Pages : 9
  • Course Code: ACC307
  • University: Elite Education
  • Country: Australia

Answer: Introduction A conceptual framework forms the structure of ideas and objectives that helps to create accounting rules and standards. The norms and standards that are placed in the conceptual framework describes the distinctiveness, the functions and boundaries of financial accounting and statements. This framework is also used as a basis for solving disputes in accounting.          The Statemen...

Read More arrow

ACC204 Accounting Management Assignment

Download : 0 | Pages : 4
  • Course Code: ACC204
  • University: The University Of Sydney
  • Country: Australia

Answer: Question 1 Straight Line Method                 2012 2013 2014 2015 2016 2017 Cost of Truck 65000             Residual Value 5000             Depreciation ...

Read More arrow Tags: Australia Brighton Humanities Computing Theory University of Sydney 
Next
watch

Save Time & improve Grades

Just share your requirements and get customized solutions on time.

question
We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits

1,247,995

Orders

4.9/5

Overall Rating

5,068

Experts

Our Amazing Features

delivery

On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.

work

Plagiarism Free Work

Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.

time

24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat.

subject

Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.

price

Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 4/5

1309 Order Completed

100% Response Time

Gemmie Chen

MSc in Nursing

Singapore, Singapore

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

203 Order Completed

97% Response Time

Richard Alpert

PhD in Psychology

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

647 Order Completed

98% Response Time

Adlina Han

Masters in Marketing with Specialization in Branding

Singapore, Singapore

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

2830 Order Completed

97% Response Time

Leroy Bicknell

MBA in Marketing

London, United Kingdom

Hire Me

FREE Tools

plagiarism

Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.

essay

Essay Typer

Get different kinds of essays typed in minutes with clicks.

edit

GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.

referencing

Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.

calculator

Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability

1

1

1

Your Approx Earning

Live Review

Our Mission Client Satisfaction

Good work. it was on topic base, understandable and relevant. Help me to achieve great mark. Really appreciate.

flag

User Id: 78040 - 08 Apr 2020

Australia

student rating student rating student rating student rating student rating

got assignment completed on time. I had lot of important information and up to the point.

flag

User Id: 299002 - 08 Apr 2020

Australia

student rating student rating student rating student rating student rating

I was so excited to share my experience. I had Peter help me with assignment. He did and exceptional job that I couldn\'t believe it. I got an A+ PERFECT SCORE! ALL i can say is WOW! THANK YOU.

flag

User Id: 307193 - 08 Apr 2020

Australia

student rating student rating student rating student rating student rating

Excellent work from the teacher. I got excellent marks and Assignment help had given the. assignment in the time.

flag

User Id: 213317 - 08 Apr 2020

Australia

student rating student rating student rating student rating student rating
callback request mobile
Have any Query?