Designing a Computer Based System for an Accountant

Ashok Lakhani and Sarjit Desai run a business consultancy firm. They

do simple accounts like payroll, tax, national insurance, VAT returns

and Tax rebates. They use a manual paper based system to keep records

of their accounts. They use a pen, paper and calculator to analyse

their accounts. I recommend that they use a few stand-alone computers

to make their accounting easier and quicker.

(b) Types of processing activity

o Calculatingcould be done in Microsoft Excel, which is spreadsheet

software where a formula can be used.

o Storingcould be done in a floppy disk or a CD for larger capacity

documents.

o Searchingwill be needed to search their files.

o Sortingcould be done in alphabetical order to make it easier to

search for files and documents.

o Word Processingcould be used to type up documents.

§ Input Requirements

The following should be included in the cash flow: -

Wages~this is a payment made to the employees for their work done for

the company. Lakhani and Desai pay £2500 in total per month.

Business rates~this is payment from the company as a fee or tax

payment. Lakhani and Desai pay £400 in June and £400 in September.

Advertisement~this is a form of publicity to let the public know about

the firm. Lakhani and Desai spend £2000 on their advertisement.

Opening Bank Balance~this is the amount of money that the company had

to start off with from the beginning. Lakhani and Desai

* Process

By using formulas it is easier to calculate the final value without

typing everything out again. The following formulas may be needed in

the cash flow.

Þ To calculate supplies ~ =B4/2

Þ To calculate total payments ~ =SUM (B5:B11)

Þ To calculate the net cash flow ~ =B4-B12

Þ To calculate the closing bank balance ~ =B3+B13

Conditional Formula

This is the formula you use to let you know whether you have gained a

profit or not after doing the 'what if' queries.

Ashok Lakhani and Sarjit Desai run a business consultancy firm. They

do simple accounts like payroll, tax, national insurance, VAT returns

and Tax rebates. They use a manual paper based system to keep records

of their accounts. They use a pen, paper and calculator to analyse

their accounts. I recommend that they use a few stand-alone computers

to make their accounting easier and quicker.

(b) Types of processing activity

o Calculatingcould be done in Microsoft Excel, which is spreadsheet

software where a formula can be used.

o Storingcould be done in a floppy disk or a CD for larger capacity

documents.

o Searchingwill be needed to search their files.

o Sortingcould be done in alphabetical order to make it easier to

search for files and documents.

o Word Processingcould be used to type up documents.

§ Input Requirements

The following should be included in the cash flow: -

Wages~this is a payment made to the employees for their work done for

the company. Lakhani and Desai pay £2500 in total per month.

Business rates~this is payment from the company as a fee or tax

payment. Lakhani and Desai pay £400 in June and £400 in September.

Advertisement~this is a form of publicity to let the public know about

the firm. Lakhani and Desai spend £2000 on their advertisement.

Opening Bank Balance~this is the amount of money that the company had

to start off with from the beginning. Lakhani and Desai

* Process

By using formulas it is easier to calculate the final value without

typing everything out again. The following formulas may be needed in

the cash flow.

Þ To calculate supplies ~ =B4/2

Þ To calculate total payments ~ =SUM (B5:B11)

Þ To calculate the net cash flow ~ =B4-B12

Þ To calculate the closing bank balance ~ =B3+B13

Conditional Formula

This is the formula you use to let you know whether you have gained a

profit or not after doing the 'what if' queries.