Designing a Computer Based System for an Accountant

Designing a Computer Based System for an Accountant

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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

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.

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"Designing a Computer Based System for an Accountant." 30 Mar 2020

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Related Searches

=IF(B13<0, "LOSS","PROFIT")

"What If" queries

This is carried out once the cash flow is designed. This is to test to
see what improvements could be made.

* Output Requirements


* Closing Bank Balance~this is the amount of money that is left
at the end of the month, which is also the amount of money
used for the opening bank balance at the beginning of the next

* Net Cash Flow~this is the results of the total receipts take
away the total payment of the bills for each month.

* Total~this is the bills all added together for each month.
Lakhani and Desai have bills for supplies, wages, loan
repayment, rent, electricity and gas bills, business rates and

* Balance check~by using the balance check formula you can see
whether there is a profit or a loss at the end of each month.

* Information Sources

v Lakhani and Desai ~Lakhani and Desai is a business consultancy firm.
Ashok Lakhani is a chartered accountant and Sarjit Desai is a
management 'Whizzkid'. Their clients include shops, cleaning firms,
restaurants and bookshops. They do basic accounts for them like
Payroll, Tax, National Insurance, VAT returns and Tax Rebates. They
are also frequently asked to do budgeting, cash flow and profit
forecasts for their clients.

v Pizza Palace~the pizza palace is an Italian restaurant that has been
in business for two years. It made a small profit last year, but
things are not looking good for this financial year. It is suffering
form cash flow problems, where money coming into the business each
month is less than the money going out of the business each month.
Sometimes, even successful businesses are forced to close, if they do
not accurately predict the amount of money they need to cover their
monthly bills.

(c) Methods of processing.The data will be used in a spreadsheet using
Microsoft Excel and Microsoft Word will be used to type up reports. In
the future we will probably recommend you to use a database.

Task 3

(a) Hardware:

Input Devicesis needed to control the way they are using the computer
system on what they do. Examples of some of these main input devices
are as follows:

* Keyboard- to type up their work


* Mouse- to position the cursor


* Scanner- to scan information for a better view.


Processing Devices controls the computer. An example is Intel Pentium
4- 2.4 GHZ

Output Deviceswill be needed for a good view of the layouts of the
documents by using a monitor and printer.

Storage Deviceswill be needed to make back up copies of the documents
by storing it on floppy disks. I also recommend using a CD for storing
documents with a larger capacity.

(b) Software:

vSystem SoftwareThis is the operation system, which controls the
computer. E.g. Windows '98

vApplication Softwareis the Office Suite, which carries out the users

Microsoft Word

Microsoft Word can be used to print documents and write up reports and

Microsoft Publisher

[IMAGE]Microsoft Publisher can be used to create a more advanced
document. Such as: Newspaper Article, Leaflet, Invitation, etc.

Microsoft PowerPoint

Microsoft PowerPoint is a program used to make presentations for
speeches, etc.


Microsoft Excel

[IMAGE]Microsoft Excel is also used to produce cash flows in order for
Allders to predict their future profit or loss.

Microsoft Access

[IMAGE]This program is used to create databases. This program is
recommended to a more advanced user.


Microsoft FrontPage

[IMAGE]This program is used to create websites. Therefore, we
recommend you, the Pizza Palace users to make a website for more

vUtility SoftwareNorton AntiVirus is an example of utility software
and it is used to protect the system form viruses when using a floppy
disk or Internet.
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