AUTOMATED ACCOUNTING MANAGEMENT SYSTEM41

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CARLO HEBREO

JAIRAH S. GREGORIO

RJ ARIES K. MAGHANAY

ROSELYN P. PAREDES

MARYANN M. PELGONE

DEAH S. RODRIGUEZ

ROCHELAIZA L. ROMARATE

JAN RIEL S. TRINIDAD

Submitted in Partial Fulfillment of the Requirements

In Thesis Writing
Bachelor of Science in Computer Science
Montessori Professional College – Imus Branch
May 2017
 APPROVAL SHEET

The Thesis attached here to, entitled “Automated Accounting

Management System”, prepared and submitted by CARLO HEBREO,

JAIRAH S. GREGORIO, RJ ARIES K. MAGHANAY, ROSELYN P. PAREDES,

MARYANN M. PELGONE, DEAH S. RODRIGUEZ, ROCHELAIZA L.

ROMARATE, JAN RIEL S. TRINIDAD, in partial fulfillment of the

requirements in THESIS WRITING is hereby accepted.

JUNFRANCIS VILLAROJO

Adviser

Panel Members:

Member Member

Member Member

Accepted in partial fulfillment of the requirements in Thesis Writing.

GENNYFER L. LUALHATI

Office of the Registrar

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 ABSTRACT

The purpose of this study is to improve accounting management in

terms of doing transactions in every services and sole proprietorship.

Business with a single owner and not registered as a corporation,

partnership and limited liability is the primary user of the system, because

the scope of the study are only in journal entries, general ledger, accounts,

supplier, income statement and financial report. Using the system,

recording transactions would be easy not just like in doing it in

spreadsheets and other recording files. By logging in into login form of the

system, admin should type first the username and the password. Main

form will appear and the user can start doing transactions using the

following features of journal entries, general ledger, and others functions in

transactions. To evaluate the system, researchers invited some students of

Accountancy, Business Administration and Business Management. Also,

there were 2 respondents which are not student but currently working as

accountant. The respondents evaluated the system based on its

functionality, aesthetic, workability and durability. The statistical

treatment that used was mean, standard deviation and percentage to get

the average of the system. Statistics shows that functionality got 4.12 rates

or 82.4% as respondents answered the question. When it comes to

aesthetic or design of the system, 4.05 rates or 81% are recorded.

Workability got 4.13 rates or 82.6% and durability got 4.26 rates or 85.2%.

The total rates summed to each other, and get its mean. As the result,

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respondents give the average rating of 4, while the standard deviation (SD)

was 0.9 as rounded.

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 TABLE OFCONTENTS

APPROVAL SHEET……………………………………………………………………. 2

ABSTRACT ……………………………………………………………………………... 3

CHAPTER 1: INTRODUCTION

1.1 Background of the Study …………………………………………….… 7

1.2 Statement of the Objective ………………………………………….…. 9
1.2.1 General Objective .……………………………………………. 9
1.2.2 Specific Objective ……………………………………………. 10
1.3 Significance of the Study …………………………………………….. 10
1.4 Scope and Limitation …………………………………………………. 11

CHAPTER 2: REVIEW OF RELATED LITERATURE AND STUDIES

2.1 Review of Related Literature ………………………………………. 12

2.1.1 Foreign Studies ……………………….………………………. 12

2.1.2 Local Studies ……………….…………………………………. 21

2.2 Conceptual Framework ……………….………………………………. 29

2.3 Definition of Terms …………………….………………………………. 30

CHAPTER 3: METHODOLOGY

3.1 Research Design ………………………………………….…………….. 32

3.1.1 Flowchart ………………………………………..…………….. 33

3.2 Population and Sampling ………………………………..……………. 34

3.3 Statistical Instrument ……………………………………..…………... 34

3.4 Procedure ……………………………………………………………….... 36

3.5 Statistical Treatment ……………………………………………..……. 37

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CHAPTER 4: ANALYSIS AND INTERPRETATION OF DATA

Table 4.1 Gender of Respondents ………………………………………… 39

Table 4.2 Position/Course of the respondents ………………………… 39

Table 4.3 Functionality result of the System …...…………..……..... 40

Table 4.4 Aesthetic result of the system ...………………………….…. 40

Table 4.5 Workability result of the system …………………………... 40

Table 4.6 Durability result of the system ………………………………. 40

Table 4.7 Mean and Standard Deviation of Evaluation …………….. 41

Table 4.8 Total Mean and total SD of the system ……………………. 41

Table 4.9 Standard Deviation of the Evaluation ……………………… 42

CHAPTER 5: SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 Summary of Findings ………………………………………………….. 43

5.2 Conclusion ……………………………………………………………….. 45

5.3 Recommendation ……………………………………………………….. 46

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 Chapter 1

INTRODUCTION

1.1 Background of the Study

Every business needs accounting management system and every

company has accounting department firm. Having an effective and

successful business was a big responsibility that affiliates with. It’s not

easy to manage business especially when it comes to the accounting

managing firm. Once the company having a conflict about accounting

management, there’s a possibility that the company will go bankrupt. This

incident can prevent by using some strategies or techniques and it will help

a lot to improve company or business status. Using accounting system, the

company would know if the money that they invested was earning. Not only

the sales of the company was included on accounting, also payroll process

of the employee, receiving transactions coming from the suppliers or

clients, accounts payable and other transactions on the company. However,

having files recorded as computer files, like in a spreadsheet was

acceptable but it’s better to have a useful system which can manipulate

and manage financial data. Businesses, either big or small needs to

monitor the financial status because knowing the success of every business

relies on financial reports by monitoring of transactions, summarizing and

analyzing data.

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 Accounting management is a practical application of management

techniques to control and report on the financial health organization. This

involves the analysis, planning, implementation, and control programs

designed to provide financial data reporting for managerial decision

making. It also includes the maintenance of bank accounts, developing

financial statements, cash flow and financial performance analysis. Also,

accounting management is the process of preparing management reports

and accounts that provide accurate and timely financial and statistical

information required by managers to make day-to-day and short-term

decisions. Unlike financial accounting, which produces annual reports

mainly for external stakeholders, management accounting generates

monthly or weekly reports for an organization’s internal audiences such as

department managers and the chief executive officer. These reports

typically show the amount of available cash, sales revenue generated,

amount of orders in hand, state of accounts payable and accounts

receivable, outstanding debts, raw material and inventory, and may also

include trend chart, variance analysis, and other statistics.

In business, it is very important to have accounting system.

Accounting system is a method for recording transaction, keeping financial

records, performing internal audits, and reporting and analyzing financial

information to the management. It conducts financial management for any

business. Financial Management refers to the efficient and effective

management of money (funds) in such a manner as to accomplish the

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objectives of the organization. All organizations, whether it is

multinationals, small and medium-sized enterprises or non-for-profits need

money to sustain and achieve the visions and objectives of the company.

“Accounting Management has big contribution when it comes to the

success of every business, company or organization because the role of

accounting in business is to help internal and external stakeholders make

better business decisions by providing them with financial information.”

Keeping transactions is needed. General ledger is one of the important tools

to keep financial transactions. It is a chronological accounting record that

categorized and summarized in general ledger accounts for unique record

for each type of asset, liability, equity, revenue and expense. Journal entry

is an entry to the journal which is it is a record that keeps accounting

transactions in chronological order as company occur.

1.2 Statement of the Objective

1.2.1 General Objective

The objective of this study is to develop automated accounting

management system that helps those services and sole proprietorship to

become easier in recording transactions regarding on journal entry, general

ledger financial statement and other related basic accounting.

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1.2.2 Specific Objectives

1. Log in form for Administrator and Accounting staff; Username and

Password.

2. System Design with the following features:

a. Journal Entries –double entries which you can create and record

all transactions regarding on accounts with or without check.

b. General Ledger – contains reports for suppliers and accounts

c. Accounts – reports of list of accounts

d. Bank – bank setting that create bank information of supplier

e. Currency – currency setting which contains conversion of money

f. Suppliers – create list of suppliers

g. Income Statement –income reports for every month and year

h. Financial Statement - financial reports for every month and year

1.3 Significance of the Study

This study is to improve using manual system into automated

accounting management system for those services and sole proprietorship

which encountered difficulties in keeping and recording business

transactions. Using the system, it can make a monitored transactions

regarding on the businesses. Account managers or the accounting

management team are responsible for this if it is for the company but if it is

in just small businesses, the owner can do the recording transactions. As

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a part of a team, it is very important to be liable for those small and larger

accounts that the clients deal in the company.

Collecting all the numbers is the easy part-today, all the accountant

have to do is start up their accounting software. The hard part is analyzing,

interpreting, and communicating the information but using this kind of

accounting management system, all reports would be easily presented

because all transactions in the business would be recorded to the system.

1.4 Scope and Limitation of the Study

The scope of this study is just only in journal entries, general ledger,

subsidiary ledger, and financial reports. The system can use in services

and sole proprietorship only. Multi-company and corporation are not

applicable in this system.

This system is for Accounting Management only and it is not

applicable in other department firm. Accountants and other respondents

like manager and administrator can use this system.

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 Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

2.1 Review of Related Literature

This review of related literature was gathered through books, articles

online and in different websites, pages and blogs that related on the topic.

The goal of this literature was finding additional information about

accounting management and finding appropriate information regarding the

accounting differences in different parts of the world.

2.1.1 Foreign Studies

According to the PDF research paper of Accounting Information

System of the Financial Institutions in Bangladesh: An Evolution, an

effective accounting information system is essential to any organization’s

long run success. Without a means of monitoring the events that occur,

there would be no way determine how well the organization is performing.

For this reason an attempt has been made in the present paper to evaluate

the existing accounting information system (AIS) of the financial

institutions in Bangladesh. To this end, a total of 91 responses were

collected on a structured questionnaire from different sectors of financial

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institution. In combine, AIS is in the primitive stage i.e., there is no such

well-organized AIS in the financial institutions. They use computer

generally for operating purposes but the impact of computerized AIS is not

significant. Data collection and data maintenance is more or less

satisfactory, but little effort had been given in data management, data

control and information generation. They should give more emphasis on

internal control system, safeguarding of assets and information generation.

Fiza Urif, one of the online author of SSRN page, from Open

University Malaysia, Bandar Baru Bangi, Selangor, Malaysia, management

accounting system is recognized as the most important source of formal

information in an organization as it plays a vital role in helping the

managers of complex and hierarchical organizations by providing the

information that enables them to plan, organize, and control the

organizations. The purpose of this study is to enhance researchers’

knowledge on the evolution of management accounting and the changing

roles of management accountants. This study aims to define management

accounting system, describe the shortcoming of the traditional management

accounting system, explain the strategic management accounting, and

identify the changing role of management accountants. This study covered

the evolution of management accounting and the changing roles of

management accountants in parallel with the development of strategic

management accounting.

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 Study Note from The Institute of Cost Accountants of India 12, Su

Der Street, Kolkata - 700 016, an Intermediate Group – II Paper 8, entitled

Cost Management Accounting, Study Note 1, Financial Accounting, Cost

Accounting and Management Accounting, tells that accounting is a very

old science which aims at keeping records of various transactions. The

accounting is considered to be essential for keeping records of all receipts

and payments as well as that of the income and expenditures. Accounting

can be broadly divided into three categories; Financial Accounting aims at

finding out profit or losses of an accounting year as well as the assets and

liabilities position, by recording various transactions in a systematic

manner; Cost Accounting helps the business to ascertain the cost of

production/services offered by the organization and also provides valuable

information for taking various decisions and also for cost control and cost

reduction; and Management Accounting helps the management to conduct

the business in a more efficient manner. The scope of management

accounting is broader than that of cost accounting. In other words, it can

be said that the management accounting can be considered as an extension

of cost accounting. Management Accounting utilizes the principles and

practices of financial accounting and cost accounting in addition to other

modern management techniques for efficient operation of a company. The

main thrust in management accounting is towards determining policy and

formulating plans to achieve desired objectives of management.

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Management Accounting makes corporate planning and strategies effective

and meaningful.

Wiley Online Library, a journal in Financial Accountability and

Management in Government, Public Services and Charities by Kiyoshi

Yamamoto: Accounting System Reform in Japanese Local Governments.

The New Public Management (NPM), of which the change from cash

accounting to accrual accounting is considered an important tool, has been

in fashion in many developed countries. Japanese governments, however,

have preserved control of expenditures on a cash basis, though recently

financial management reforms in local government have begun to adopt

NPM ideas. Using a contingency framework which views the reform of

accounting sub-systems (management accounting, financial accounting

and auditing) as stimulated by a combination of internal and external

pressures, this paper explores why Japanese local governments managed to

survive without accrual accounting and the prospects for further reform in

the future. It is suggested that system change itself can be accomplished by

internal pressures, in the form of mandated policies, alone but that

sustained external pressures by citizens are required in order to achieve the

intended outcomes of accounting reform.

Inventory Systems of Foreign Companies in a Newly Industrialized

Country by Jongsuwanrak Wanida, Prasad Sameer and Babbar Sunil: Like

any other country, Thailand is a characterized by a unique set of

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infrastructural, regulatory, legal, and economic conditions. Cheap labor

coupled with a relatively stable economic and political climate has attracted

Multinational Corporations (MNC’s) to Thailand. As multinationals invest

billions of dollars into Thai operations, it is essential that they design and

manage systems that arrange congruent with the local need. One key

operational area of interest is the management of inventories.

Inventory systems can be affected by a host of international, product,

and supply factors. In this research we attempt to empirically ascertain how

inventory systems are influenced by industry type and look for interactions

with cultural, infrastructural and economic issues. This research is

expected to be of value to MNC managers in designing inventory systems

that work more effectively in Thailand. In addition, it could also provide

direction to nations making the transition to Newly Industrial Countries

(NIC) status from that of developing one.

A significant amount of literature is available on inventory systems. A

majority of the findings are derived from experiences in the US,Japan and

Western Europe. Some inventory systems however, can be affected by

variations in local conditions such as infrastructure, customs, duties, and

regulations .Hence, it is essential to view such systems in an international

context. To frame this research, we will examine the literature on

operations in NTC countries followed by an analysis of local conditions in

Thailand. A number of articles are available that examine the inventory

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setups in Singapore, Hong Kong, and Korea (Amsden, 1989). For example,

Cheng (1988) and Hum and Ng (1995) examine the word kings of just in

time (JIT) systems in Hong Kong and Singapore, respectively .Other studies

related to inventory management include facility location decisions (Sisodia,

1992; Nambiar, fielders and van Wassenhove, L.N, 1989; Mathews, 1997)

and distributed systems, the studies indicate that Thailand is not as

industrialized as the other NIC Countries such as Singapore, and

infrastructure short comings play an important role. Next we will examine

the literature on the quality of infrastructure in Thailand. Infrastructure

affects both the productivity and effectiveness of manufacturing companies.

It has a direct impact on the distribution of raw materials, parts and

finished goods to customers. The few studies focused on Thailand have

primarily addressed infrastructural problems in Thailand

(Chalamwong,Chalongphob and wattanalee, 1994 Chalamwong,, 1993).In

identifying the infrastructure affects both the productivity and effectiveness

of manufacturing companies. It has a direct impact on the distribution of

raw materials, parts and finished goods to customers. The few studies

focused on Thailand have primarily addressed infrastructural problems in

Thailand (Chamalwong, Chalongphob and Wattanalee, 1994; Chalamwong,

1993). In identifying the infrastructure related problems, Yukio (1990) calls

for the Thai government to pay closer attention to transportation systems in

their effort to attract more Japanese and foreign investment. Sibunruang

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(1986) also points to infrastructural constrains having a bearing on the

development of the Thai economy.

2009 Larry M. Walther, under nonexclusive license to Christopher J.

Skousen & Ventus Publishing ApS. All material in this publication is

copyrighted, and the exclusive property of Larry M. Walther or his licensors

(all rights reserved).

Accounting Information

You likely have a general concept of what accountants do. They

capture in transactions and events of a business, and summarize that

activity in reports that are used by persons interested into likely do not

realize the complexity of accomplishing this task. It involves a talented

blending of technical knowledge and measurements are fully appreciated

via extensive study of the subject. The best analogy is to say that you

probably know what a heart surgeon does, but you no doubt appreciate

that considerable knowledge and skill is needed to successfully treat a

patient. If you were studying to be a surgeon, you would likely begin with

some basic anatomy class. In this chapter, you will begin your study of

accounting by looking at the overall structure of accounting and the

basing.

Financial Accounting 

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 Consider that financial accounting is targeted toward a broad base of

external users, none of whom control the actual preparation of reports or

have access to underlying details. Their ability to understand and have

confidence in reports is directly dependent upon standardization of the

principles and practices that are used to prepare the reports. Without such

standardization, reports of different companies could be hard to

understand and even harder to compare. 

Financial Statements

Financial accounting information is conveyed through a standardized

set of reports. You have already been introduced to the balance sheet. The

other fundamental financial statements are the income statement,

statement of retained earnings, and statement of cash flows. There are

many rules that govern the form and content of each financial statement.

At the same time, those rules are not so rigid as to preclude variations in

the exact structure or layout. For instance, the earlier illustration

for Edelweiss was first presented as a “horizontal” layout of the balance

sheet. The subsequent Edelweiss examples were representative of “vertical”

balance sheet arrangements. Each approach, and others, is equally

acceptable. 

Income Statement 

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 A summary of an entity’s results of operation for a specified period of

time is revealed in the income statement, as it provides information about

revenues generated and expenses incurred. The difference between the

revenues and expenses is identified as the net income or net loss. The

income statement can be prepared using a single-step or a multiple-step

approach, and might be further modified to include a number of special

disclosures relating to unique items. 

Analysis of Transactions and Events 

You now know that transactions and events can be expressed in

“debit/credit” terminology. In essence, accountants have their own unique

shorthand to portray the financial statement consequence for every

recordable event. This means that as transactions occur, it is necessary to

perform an analysis to determine (a) what accounts are impacted and (b)

how they are impacted (increased or decreased). Then, debits and credits

are applied to the accounts, utilizing the rules set forth in the preceding

paragraphs.

Essentials of Payroll: Management and Accounting, Steven M. Bragg. The

types of payroll controls that you should consider implementing will vary

by the type and size of the business, as well as whether the payroll is

processed internally or by a supplier. Because the control risk will vary so

significantly by a company’s individual circumstances, it is best to

review the following list of controls and then select only those that will

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improve the control environment. The controls are described in the

following subsections.

Procedures and controls are critical components of the payroll

process. Procedures are designed to increase the efficiency of the

department by standardizing task steps; controls can have the opposite

effect, by increasing the number of tasks in the procedures in order to

ensure that there is no loss of assets. The payroll manager must reconcile

the conflicting goals of procedures and controls—efficiency versus asset

control—by balancing the need for additional streamlining with any

resultant loss of control. This is a balancing act and there is no one way to

achieve it, since it will be based on the number of company locations, the

skill level of the staff, the department’s organizational structure, and other

intangible factors. Also, once the payroll manager strikes a balance

between the efficiency and control objectives, this issue must be revisited

time and again, since the manner in which the payroll department operates

will change over time; these changes must be incorporated into procedures

and evaluated in terms of their impact on the control environment.

2.1.2 Local Study

A PDF research paper in Diagnostic Study of Accounting and

Auditing Practices in the Philippines says that Philippine accounting

practices date back to the pre-Spanish period, when Filipinos conducted

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business with Chinese, Indians and Malays from neighboring countries.

These trading activities forced Filipinos to prepare crude accounting records

that were based mainly on cash receipts and payments.

The Philippines has, for a significant part of its recent history, been

exposed to many foreign cultures and influences. The Spanish brought

substantial changes to language and religion. The first accounting firms

were established by the British in the 1700s. However, the comparatively

short American colonial period was the most significant in influencing the

Philippines’ major institutions—including the educational system and the

formalization of the professions.

A number of American businesses established themselves in the

Philippines during the 1920s and 1930s. Their activities and requirements

influenced the establishment and initial growth period of the public

accounting profession. During this time, the passage of the Accountancy

Act 1923 created the Board of Accountancy (BOA) and gave it the authority

to issue Certified Public Accountant (CPA) certificates. Six years later, the

Philippine Institute of Certified Public Accountants (PICPA) was established

within the private sector to represent professional interests.

Many of the larger Philippine companies were subsidiaries or

branches of American companies—their accounting reflected US practices.

Even after independence, the US maintained close links with the

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Philippines through trade and investment. These links strongly influenced

public and private sector accounting regulation and practices. Until the

mid-1990s, private sector accounting standards replicated those of the US

(Although PICPA issued pronouncements to cover issues not covered by the

US standards—for instance, “Revaluation of Fixed Assets”). Likewise, the

Philippine accounting and auditing regulatory framework is similar to the

US framework. It includes both governmental and a supervised form of self-

regulation.

The Accountancy Act 1967, which replaced the Accountancy Act

1923, governed the standardization of accounting education, stipulated the

examination process for CPA registration, and regulated the practice of

accountancy. The Act allowed only Philippine citizens, and citizens of

foreign countries extending similar privileges to Philippine citizens with

respect to the practice of accountancy, to take the CPA exam and to

practice accountancy. The Revised Accountancy Act 1975, which replaced

the Accountancy Act 1967, remains in force and is the key piece of

legislation that governs accounting and auditing arrangements.

Philippine accounting and auditing moved away from US influences

towards international practices in the 1990s. For instance, International

Accounting Standards (IASs) became the basis for Philippine accounting

standards in 1996. In the wake of the 1997-98 Asian financial crisis, much

attention has focused on accounting and auditing arrangements. While the

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Philippines weathered the crisis better than many of its neighbors, foreign

direct investment (FDI) levels have fallen substantially in the past 3 years—

the world economic slowdown is reinforcing this trend. Among a menu of

options to make the Philippines a more attractive destination for FDI, one of

the more effective choices is to adopt best-practice accounting and auditing

standards, and to ensure that these standards are rigorously monitored

and enforced.

Nenita S. Robbles, Certified Public Accountant, BSC, MBA, author of

Financial Accounting (Theory and Problems) 2008 Edition, Chapter 4,

Inventories. Assets is a held for sale in the ordinary course of business; in

the process of production for such sale; or in the form of materials or

supplies to be consumed in the production process or in the rendering of

services. In measurement, inventories should be measured at the lower

cost and net realizable value. Net realizable value is the estimated selling

price of an item reduced by the estimated costs of completion and disposal.

Balancing sheet include in inventory. Balance sheet classification and

presentation is current assets, normally the following trade and other

receivables.

Inventories have classes that divided into three. The merchandising

company which is the merchandise inventory, the manufacturing company

which are the finished goods, goods in process and raw materials. And the

last class was the utility companies which is the supplies. When it comes to

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the inventory system, there are two kinds of inventory. Periodic and

Perpetual inventory system. Periodic inventory system is generally used by

the enterprises maintaining numerous inventory items with low unit costs.

Purchases of goods are debited to Purchases account. Returns are recorded

by crediting Purchase Returns account. The inventory quantity is

determined by means of a physical count at year-end. Perpetual inventory

system is used by enterprises maintaining inventory items in small

quantities with high unit costs. Purchases of good are debited directly to

Inventory account while returns are recorded by crediting the Inventory

account.

Zenaida Vera Cruz-Manuel, BBA, CPA, MBA, Accounting Professor

and CPA Reviewer, author of 1 st Edition Accounting for Business (Basic

Concepts and Procedures). Chapter 9, Accounting system for a

merchandiser: Combination journal, Cash book and special journals. An

accounting system performs two basic job processing and communicating.

It could be a complicated system for a bank where branches are set up in a

different places which uses set up in a different places which uses

hundreds of professional processors linked by a computerized accounting

system in other words the accounting system addresses the speed and

efficiency by which transaction should be process. Computerized

accounting system is discussed in higher accounting in this chapter we will

expand the manual transaction processing system for a merchandiser to

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include the use of the combination journal and special journal as

convenient substitutes for the two column general journal . Combination

journal –this accounting device carries special money columns for accounts

having large number of transaction of a repetitive nature .the accountant’s

saves time and effort since transaction effects are simply entered in the

special money columns. Special journals – is a better accounting device

used to streamline the transactions a special journal could be maintained

for each one of those transactions with the other transactions recorded in

the two column general journal like the two column journal are also book of

original entry and are posted to the general ledger to arrive at the account

balance cashbooks if most transaction are on cash basic, a cash book may

take the place of the combination journal.

Gloria J. Tolentino-Basya, a Certified Public Accountant, Ma.

Conception Y. Lupisan, a Certified Public Accountant: author of Accounting

for Partnership and Corporation, 2004 Edition. Chapter 1, Review of

Accounting Process: Definition of Nature and Accounting.

Accounting is defined in SFA no. 1 as a Service activity. Its function

is to provide quantitative information, primarily financial in nature, about
economic decisions.

The definition of accounting emphasizes the role of accountants in

the business world. That is the rendering of service. The accountant

provides information that is measured in terms of money about the

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different economic entities. These entities can either be profit-oriented

organization or know as business enterprise or for profit organization. The

accounting process is considered often steps, two of which are optional.

These step are as follows: preparing or receiving the appropriate business

documents, journalizing the transaction, posting the entries to the

accounts in the ledger preparing the trial balance compiling the various

data requiring adjustments preparing a worksheet (optional), preparing the

financial statements based on the completed worksheet, journalizing and

posting the adjustment and closing entries, preparing a post-closing trial

balance and reversing certain adjusting entries (optional). Journalizing is

the process of recording transaction for the first time in the books called

journal the company. The company may use a general journal and one or

more special journals. The general journal is the most flexible type of

journal where almost all types of transaction can be recorded. General

ledger is the principal ledger which contains all the accounts that are

reported or the financial statements, namely: assets, liability, equity,

income and expenses.

The subsidiary ledger contains details of some general ledger account

balances for example: the accounts receivable account balance is found in

the general ledger. Thus, the list of various costumers of the company with

their corresponding balances is found in the subsidiary ledger. Another

example is account payable.

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 Advanced Accounting Part 1, 2008 Edition:Gloria J. Tolentino-Baysa,

a Certified Public Accountant, Ma. Concepcion Yamat Lupisan, Certified

Public Accountant. Chapter 7: Long-Term Construction Contracts and

Franchising. When an entity or an individual undertakes a construction

project, various accredited contractors are invited to bid for the project and

the contract is awarded to the lowest bidder.

Contractors on type other hand, prepare an estimate of the cost that

will be incurred on the project so as to arrive at a reasonable yet profitable

bid price. The transactions of a contractor (construction firm) such as

acquisition of plant assets, materials, and payment of operating expenses

are accounted for in the same manner as those of manufacturing firm or

merchandising firm. Hence, only transactions specifically relating to the

construction activities will be discussed fully. These transactions include:

a. Incurrence of material, labor, and overhead costs.

b. Billings to customers.

c. Collections from customers.

d. Recognition of revenue cost of revenue and gross profit.

The main issue in accounting for long term construction contracts is

the timing of recognition of revenue, the related cost of revenue and gross

profit.

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2.2 Conceptual Framework

Figure2.1. Framework of the Study

INPUT:
PROCESS:
 VB.net knowledge
 Lay outing
 Database Knowledge
 Designing
 Animation Knowledge
 Coding
 Logical Skills
 Debugging

EVALUATION

OUTPUT:

AUTOMATED ACCOUNTING
MANAGEMENT SYSTEM

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2.3 Definition of Terms

Accounting – a system for measuring and summarizing business

activities, interpreting financial information, and communicating the

results to management and other decision maker.

Accounting Management – practical application of management

techniques to control and report on the financial health organization.

- is the process of preparing management

reports and accounts that provide accurate and timely financial and

statistical information required by managers to make day-to-day and short-

term decisions

Accounting Manager – respondents who are responsible for the

account of the clients.

Accounting System – system is a method for recording transaction,

keeping financial records, performing internal audits, and reporting and

analyzing financial information to the management.

Financial Management - refers to the efficient and effective

management of money (funds) in such a manner as to accomplish the

objectives of the organization

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 General ledger (GL) is a chronological accounting record a business

uses to keep track of financial transactions. Transactions are categorized

and summarized into general ledger accounts. An account is a unique

record for each type of asset, liability, equity, revenue and expense

Journal entry is an entry to the journal which is it is a record that

keeps accounting transactions in chronological order as company occur.

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 Chapter 3

METHODOLOGY

3.1 Research Design

Developmental research, as opposed to simple instructional

development, has been defined as the systematic study of designing,

developing, and evaluating instructional programs, processes, and

products that must meet criteria of internal consistency and effectiveness.

Developmental research is particularly important in the field of

instructional technology. The most common types of developmental

research involve situations in which the product-development process is

analyzed and described, and the final product is evaluated. A second type

of developmental research focuses more on the impact of the product on

the learner or the organization. A third type of study is oriented toward a

general analysis of design development or evaluation processes as a whole

or as components. A fundamental distinction should be made between

reports of actual developmental research (practice) and descriptions of

design and development procedural models (theory). Although it has

frequently been misunderstood, developmental research has contributed

much to the growth of the field as a whole, often serving as a basis for

model construction and theorizing.

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FLOW CHART

33
3.2 Population and Sampling

Population is very important in conducting a survey or evaluation of

the system. In this study, respondents who are responsible for evaluating

the system were the students related on accounting as long as business.

The total numbers of respondents are 23, 12 in male and 11 in female.

These respondents were in the courses of Diploma of Science in

Accountancy, Bachelor of Science in Business Administration and

Management, and there also currently working in the field of Accounting.

3.3 Statistical Instruments

Evaluation Instrument includes some questions that will be

answered by the respondents who evaluate the system, using the given

scale and descriptive rating; respondents can choose 1 up to 5 rating with

its corresponding value.

These are the indicator of evaluation instrument:

1. Functionality of the system

2. Aesthetic of the design
3. Workability
4. Durability of materials

Table 3.1 Numerical Rating and Descriptive Rating

5 Highly Acceptable

4 Very Acceptable

3 Acceptable 34

2 Fairly Acceptable
 Table 3.2 Evaluation Question

INDICATORS 5 4 3 2 1

A. Functionality

1. Ease of Operation

2. Provision for Comfort and Convenience

3. User-friendliness

B. Aesthetics

1. Colour Appeal

2. Attractiveness of design

3. Appropriateness of size

C. Workability

1. Availability of materials

2. Availability of technical expertise

D. Durability

1. Quality of materials

2. Quality of workmanship

3.4 Procedures

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 Making a system is not easy as others think. Automated Accounting

Management System is composed of knowledge that programmers apply

to a system to make it visible and useful. Skills in making a system

depend on the programmer that may be used. Knowledge in different

aspect of programming language is needed to form a system. As

researchers, as long as developers of system, trial and error may be

applied because there is no success if you can’t go through those errors.

In making this system, there are four procedures that used. The

procedures in making an automated accounting management system

start in lay-outing. Lay-outing is very important because it is the process

of planning details regarding on the system. After the layout, designing is

next. Designing a system is easy if you already have a layout. System was

designed using Visual Basic .NET (VB.NET) programming language that

implemented on the .NET Framework. After the designing, coding was

next. As programmer, coding is the hardest thing to do because it’s

composed of many characters and variables. Codes are very important

because system can’t run without it. Coding measures how much

patience you have in yourself because sometimes it may take errors if the

variables you entered were not right. Even a single period or comma

might affect the whole system and then debugging was in. Debugging is

fixing some errors within the codes you entered until you fixed it and you

can just run your system.

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 In conducting the survey, respondents are not only students; there

are also professionals who currently work as accountant. Students are

from Montessori Professional College and Cavite State University with the

course of Diploma of Science in Accountancy, Bachelor of Science in

Business Administration and Bachelor of Science in Business

Management.

The first 2 respondents that evaluate the system are professionals,

the next were the 3 students from CvSU and the rest were from MPC. At

first researchers give them an evaluation instrument, run the system then

explain each function.

3.5 Statistical Treatment

Mean, Standard Deviation and Percentage

The Mean is the average of the numbers: a calculated "central" value

of a set of numbers. To calculate: Just add up all the numbers, then divide

by how many numbers there are.

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 Percentage is one of the most frequent ways to represent statistics

by percentage. Percent simply means “per hundred” and the symbol used

to express percent is %.

Standard Deviation is a measure that is used to quantify the

amount of variation or dispersion of a set of data values.  

Chapter 4

38
 ANALYSIS AND INTERPRETATION OF DATA

Table4.1 Gender of the Respondents

No. of
Gender Percentage
Respondents
Male 12 52%

Female 11 48%

Total 23 100%

Table 4.1 revealed that 52% of respondent were male and 48% of
respondents
Tt were female

Table4.2 Position/Course of the Respondents

No. of
Course/Possition Percentage
Respondents

Diploma of Science in
10 43%
Accountancy

Bachelor of Science in
8 35%
Business Administration

Bachelor of Science in
3 13%
Business Management

Professional Accountant 2 9%

Total 23 100%

Table 4.2 shows that 43% of the respondents were taking DSA, 35% were
BSBA, 13% were BSBM, and 2% only were professional accountant.

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 Table4.3 Functionality result of the system

A. Functionality 5 4 3 2 1

1. Ease of Operation 6 13 2 2 0

2. Provision for Comfort and Convenience 6 10 5 2 0

3. User Friendliness 9 9 3 2 0

Table4.4 The Aesthetic result of the system

B. Aesthetic 5 4 3 2 1

1. Colour Appeal 10 10 2 1 0

2. Attractiveness of design 9 8 5 1 0

3. Appropriateness of sixe 7 7 7 2 0

Table4.5 The workability of system and technical expertise result

A. Workability 5 4 3 2 1

1. Availability of Materials 10 6 6 1 0

2. Availabilty of technical expertise 10 8 4 1 0

Table4.6 The durability of materials

A. Durability 5 4 3 2 1

1. Quality of materials 9 10 3 1 0

2. Quality of workmanship 13 6 3 1 0

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 Table4.7 Mean and Standard deviation of the evaluation

A. Functionality Mean
1. Ease of operation 4.43
2. Provision for comfort and convenience 3.86
3. User-friendliness 4.08
Standard Deviation 0.287460142
B. Aesthetic Mean
1. Colour appeal 4.26
2. Attractiveness of design 4.08
3. Appropriateness of size 3.82
Standard Deviation 0.2212088
C. Workability Mean
1. Availability of materials 4.08
2. Availability of technical expertise 4.17
Standard Deviation 0.06363961
D. Durability Mean
1. Quality of materials 4.17
2. Quality of workmanship 4.34
Standard Deviation 0.120208153

Table4.8 Total mean and total SD of the system.

INDICATORS Mean
A. Functionality 4.12

B. Aesthetic 4.05

C. Workability 4.13
D. Durability 4.26
Total Mean 4.14
Total SD 0.08756

Average Rating 4

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Table 4.7 Standard Deviation of the Evaluation

Standard Deviation

Durability 0.12

Workablity 0.06

Aesthetic 0.22

Functionality 0.29

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 Chapter 5

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 Summary of Findings

1. This study was conducted for the purpose of making an automated

accounting management system which services and sole

proprietorship will lessen their time in using manual system for

recording transactions. The evaluation questionnaire was used for

evaluating the system. The questionnaires served as the instrument

for collecting data. 91 percent of the respondents are all students

and only 9 percent was working as professional accountant. The

questions are based on functionality, aesthetic, workability and

durability of the system.

2. Out of the 23 respondents, 10 or 43 percent were taking DSA or

Diploma of Science in Accountancy, 8 or 35 percent were taking

BSBA or Bachelor of Science in Business Administrator and 3 or 13

percent were taking BSBM or Bachelor of Science in Business

Management. The rest 2 or 9 percent were professionals and

currently working as accountants in company.

3. The evaluation instrument result was shown as respondents answer

each question. Functionality of the system got 4.12 rates or 82.4

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 percent based on statistical mean. Aesthetic or design of the system

got 4.05 rates or 81 percent. In terms of workability of the system, it

got 4.13 or 82.6 percent. While in durability, this category got the

4.26 rates or 85.2 percent.

4. Evaluation instrument revealed that the category of durability got the

highest rate or percentage based on statistical mean. The lowest rate

or percentage was the aesthetic or design of system.

5. Based on the result, the total mean was 4.14, meaning the average of

the system were 4, and the Standard deviation was 0.09 as rounded.

6. Observed the table 4.3 up to table 4.6, you’ll notice that there are

always respondents who give the rate in 2 for every question. It is

because that respondent is professional and knows a lot in terms of

systems.

7. Respondents like student which is not yet exposed in the working

environment, not really experiential and just started to learn new

things in his current environment, should have a possibility to take

disadvantage when conducting a survey because the scope of his

knowledge is not fully wide. He’s just based on what he sees but not

what he experienced.

5.2 Conclusion

1. Most of the respondents are male.

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 2. Students taking Diploma of Science in Accountancy has the largest

number of respondents and Professional Accountant has the least

number as shown in table 4.2.

3. In functionality of the system, based on the total mean, provision for

comfort and convenience needs to improve for the sake of users.

4. When it comes to the aesthetic or design of the system, the

appropriateness of sizes in every main form of the system needs

some improvement.

5. In terms of workability and durability of the system, it seemed that

everything was in good condition.

6. Table 4.6 revealed that the total mean of the system is 4.14 and the

SD is 0.9 as rounded. Therefore, the system got the average rating of

4, as respondents evaluated it.

7. Standard Deviation graph of the system shows that workability has

the lowest point. And the functionality got the highest point.

5.3 Recommendation

Based on the results of findings in survey, it can be recommended for

Accountancy, Business Administration and Business Management.

Business with single owner can use the system for recording transactions

and viewing reports in financial status and income statement.

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