Set up and use an accounting software to process accounting transactions.

Subject Description 
This course continues the study of the tools and techniques of computer systems studies. SMS315 involves using an accounting software package to record accounting transactions and generating financial statements from the accounting software package.  Furthermore, the course introduces the students to contemporary information systems concepts.

Pre-requisites: ACC220 and SMS216 or SMS213
Co-requisite: EAC150
Equivalency: SMS311

Learning Outcomes 
Upon successful completion of this subject the student will be able to:

Set up and use an accounting software to process accounting transactions.

This can be demonstrated by:

1. Explaining the use of the toolbars and icons
2. Completing account maintenance activities
3. Using the enquiry function to locate selected information
4. Using the report generator of the accounting software to prepare customized reports for analyses
5. Using the export functions of the accounting software to export data to Excel files
6. Processing transactions of major accounting cycles 
7. Printing financial reports from the sample companies (data files)
8. Applying features of the accounting software to implement effective and efficient internal controls.
9. Setting up a new company

Demonstrate their understanding of contemporary information systems:

1. Discussing the concepts of information systems.
2. Discussing the foundation of computer systems.

Students are required to use critical thinking and problem solving skills, in addition to the technical skills using an accounting software, to complete the tests.

Sample Answer

Assignment Response: Systems Studies II

Introduction

In this assignment, I will explain the knowledge and skills I have gained in using accounting software and understanding modern information systems. The course Systems Studies II taught me how to process different types of accounting transactions, prepare financial reports, and use accounting software tools for better control and decision-making. I also learned the basic ideas behind information systems and computer systems used in business today.

1. Setting Up and Using Accounting Software

A big part of this course was learning how to use accounting software to handle business accounts. I practised setting up a company file and performing various accounting tasks. Here`s how I applied the software features:

a. Toolbars and Icons

I learned what each icon does, for example:

• The “Journal Entry” icon lets us enter manual transactions.

• The “Reports” icon gives access to balance sheets and income statements.

• The “Settings” toolbar helps us set up user accounts and security.

b. Account Maintenance

I performed account maintenance by:

• Adding new accounts (e.g., adding an account for “Office Supplies”)

• Editing existing accounts (e.g., changing account names or codes)

• Deleting accounts not in use

c. Enquiry Functions

Using the enquiry tools, I could quickly find:

• Customer balances

• Supplier payment histories

• Inventory levels

This feature is useful when the company needs quick answers without running full reports.

d. Customised Reports

With the report generator, I created:

• Sales by region reports

• Monthly expense summaries

• Profit and loss statements

I also learned to adjust date ranges, filters, and layouts.

e. Exporting Data to Excel

The software allows exporting reports to Excel, which is very useful for:

• Sharing financial data with others

• Creating graphs and additional analysis

2. Processing Transactions in Key Accounting Cycles

a. Sales (Revenue) Cycle

I entered:

• Sales invoices

• Customer payments

• Sales returns

This helps track income and manage accounts receivable.

b. Purchase (Expenditure) Cycle

I processed:

• Supplier bills

• Payments

• Purchase returns

This keeps records of company expenses and helps monitor cash flow.

c. Payroll Cycle

I practised setting up employee records and:

• Entering payroll entries

• Deductions (e.g., taxes, pensions)

• Producing payslips

d. Month-End and Year-End Closing

I completed:

• Adjusting entries (e.g., depreciation, accrued expenses)

• Bank reconciliations

• Closing accounts for the month and preparing year-end financials

• Opening a new fiscal year with updated balances

These steps are important to keep records accurate and ready for audits or decision-making.

3. Printing Financial Reports

Using the sample companies in the software, I printed:

• Balance Sheet

• Income Statement

• Trial Balance

• General Ledger

These reports help businesses understand their financial health and performance.

4. Internal Controls in Accounting Software

The software supports strong internal controls like:

• Password protection and role-based access

• Audit trail (record of who made which changes)

• Locking periods after closing to prevent back-dated entries

These features protect the company from fraud and errors.

5. Setting Up a New Company

I practised creating a new company file, which included:

• Naming the company

• Setting the fiscal year

• Adding chart of accounts

• Defining tax settings

This process is usually done by the finance team when a business is newly formed or switches to new accounting software.

Continued...