1

Training, Teaching and Learning Materials (TTLM)

AKAKI POLY TECHNIC COLLEGE

The Ethiopian TVET-System

ACCOUNTING AND FINANCE IV

Learning Guide #01

Unit of Competence: Set up and operate a Computerized

Accounting System

Module Title: Setting up and operate a Computerized

Accounting System

LG Code:

TTLM Code:

BY: Tolesa F.
March 25, 2024
 2

INFORMATION SHEET #1 Implement an integrated accounting system

Introduction to Computerized Accounting System

A Computerized Accounting System is a software-based method of managing and processing
financial transactions and information within an organization. It replaces traditional manual
accounting systems, which rely on paper-based ledgers and manual entry of financial data.

Usage of computers and information technology (IT) enables a business too quickly, accurately
and timely access the information that helps in decision-making. Hence, information is the key
resource of the business organizations for decision making. Therefore the study of accounting
information system is a value adding for accounting and finance.

Definition of a System
A system is a set of components that work together to achieve a common goal, or multiple
goals, by accepting input, processing it, and producing output in an organized manner.

Meaning and Role of Information

The data flows throughout the organization and makes it active. Data are facts that are collected,
recorded, stored, and processed by an information system.

There are lots of data available in the business, at every time a transaction takes place (Example
a sale), some data is recorded. It could be recorded on paper or in a computer system.
Information is data that have been organized and processed to provide meaning to a user.
Usually, more and better information translates into better decisions.

Characteristics of Useful Information

 Relevant: Reduces uncertainty, improves decision making.
 Reliable: Free from error or bias; accurately represents organization events or activities.
 Completeness: Does not omit important aspects of the events or activities it measures.
 Timely: Provided in time for decision makers to make decisions.
 Understandable: Presented in a useful and intelligible format.
 Verifiable: Two independent, knowledgeable people produce the same information.
 Accessible: Available to users when they need it and in a format they can use.

Accounting system

BY: Tolesa F.
March 25, 2024
 3

Accounting System is a system that collects, records, stores, and processes data to produce
information for decision makers. It can use advanced technology; o be a simple paper-and-
pencil system. Technology is simply a tool to create, maintain, or improve a system.

A computer-based system designed to transform accounting data into information. Can also
include transactions processing cycles, the use of information technology, and the development
of information systems

Computerized Accounting System is the most complete, powerful and fully integrated
accounting system. It combines marketing, financial and personnel information in, order to
provide with necessary tools to efficient control of business operation.

An integrated accounting system is a software package that combines major financial

accounting functions into one application. Instead of being dependent on keeping separate
books and files for management accounting, as well as turning to a mix of computer programs
and analog resources, businesses now have the option to complete all the processes with just
one application.

Integrating these features helps standardize procedures for recording transactions and
disseminating financial information and interconnects the reporting activities of companies'
different functional areas such as point of sale terminals, offices and stock facilities.

Types of accounting application software:

There are various types of accounting application software designed to meet the diverse needs
of businesses and organizations. These software solutions cater to different industries, sizes of
businesses, and accounting requirements. Here are some common types of accounting
application software:
 General Accounting Software: General accounting software is designed for small to
medium-sized businesses and provides features for basic accounting tasks, including
invoicing, expense tracking, and financial reporting. Examples: QuickBooks, Xero, Wave,
Zoho Books
 Enterprise Resource Planning (ERP) Software: ERP systems integrate various business
functions, including accounting, into a unified platform. They are suitable for large

BY: Tolesa F.
March 25, 2024
 4

enterprises and can handle complex accounting needs. Examples: SAP, Oracle ERP,
Microsoft Dynamics 365
 Tax Software: Tax software is specialized for tax preparation and filing. It helps individuals
and businesses navigate tax regulations, maximize deductions, and submit accurate tax
returns. Examples: TurboTax, H&R Block, TaxAct
 Payroll Software: Payroll software automates the process of paying employees, calculating
taxes, and managing benefits. It helps ensure compliance with payroll regulations. Examples:
Gusto, ADP, Paychex

Peachtree Accounting software

Peachtree accounting software is well developed application software and can serve for multi
types of organization in order to handle their transactions. It is the most complete, powerful and
fully integrated accounting system. It combines marketing, financial and personnel information
in order to provide with necessary tools to efficient control of business operation.

The basic steps that you will take to implement integrated accounting systems. The
implementation of integrated accounting systems involves various steps such as:

1) Analyze the plan by reviewing the business requirements and the processes and then
mapping it into the proper business plan
2) The next step is to build the pilot system by the implementation team and then validating the
business plan in detail.
3) The training is provided to the staff members for its operations and then testing the results
and accepting it.
4) The implementation of the accounting systems is done so that final transition can be done
5) The ongoing support needs to be provided by the technology partner.

SELF-CHECK

BY: Tolesa F.
March 25, 2024
 5

Give answers for the following questions and compare your answer for the above question with
the answer given at the back of the module.

Part I. Choose the correct answer from the given alternatives

1. While setting up a new company to set up for accounting period per year, which of the
following should preferred?
A. Accounting period that do not match the calendar
B. 12 month accounting period
C. It is impossible to set four accounting periods
D. None

Part II: Write Short Answer

1. What is an Accounting Systems?

__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________

2. Differentiate computerized accounting and manual Accounting system

a. Computerized accounting system

_______________________________________________________________________
_______________________________________________________________________
______________________________________________________________
b. Manual Accounting system
_______________________________________________________________________
_______________________________________________________________________
____________________________________________________________________

3. Mention the importance of computer based accounting system?

a. __________________________________________
b. __________________________________________
c. _________________________________________
d. __________________________________________
4. How would you process the transactions within the system?
__________________________________________________________________________
__________________________________________________________________________
______________________________________________________________________

OPERATION SHEET #1

BY: Tolesa F.
March 25, 2024
 6

Operation title: Integrate accounting system

Purpose:  Aims to provide trainees with the knowledge, skill and attitude
related accounting system.
 Understanding the concept of implement an integrated
computerized accounting system
Equipment, tools and a. Computer / Desktop
materials b. Projector
c. White board
d. White board marker & Duster
e. Lab and materials required for the operation

Conditions or  Access to Accounting Software.

situations for the  Adequate knowledge of software
operation:  Properly configured computer installed software
 Compliance with company policies and accounting standards.

Procedure: 1. Analyze the plan by reviewing the business requirements and

the processes
2. To build the model system by the implementation team
3. Implementation an integrated of the accounting systems
4. Follow up and monitor ongoing support needs to clarify the

Precautions: Backup data, Security

Quality criteria:

LAP Test Practical Demonstration

BY: Tolesa F.
March 25, 2024
 7

Name: ___________________ Date: ________________

Time started: ______________ Time finished: __________

Instructions:

1. You are required to perform any of the following:

a) Perform set up and operate computerized accounting system. Make sure your computer
is installed Accounting software application.

b) Submit your outputs to your teacher for evaluation.

2. Request your teacher for evaluation and feedback

Assessment Packet

BY: Tolesa F.
March 25, 2024
 8

Evidence Plan
Occupational standard: Accounting and Finance
Occupational Level: Level IV
Unit of competency Set up and operate a Computerized Accounting System
Practical Skill Knowledge
Ways in which evidence will be collected:

Demonstration

Written Test
Observation

Questioning
Oral
The evidence must show that the learner
1. Analyze the system plan requirements and the processes x x
2. Build the model system by the implementation x x
3. Install Accounting Application software x x
4. Create chart of account, general ledger and subsidiary in to system x x x
5. Ensure integrated accounting system x x x
6. Set up (create) Customers, suppliers and inventory items in the x x x
system
7. Regular back-ups data of the system x x x
8. Data are restored from back-ups in the event of loss x x
9. Secure record of all processed x
10. Appropriate technic used to solve any operational problems x x

Prepared by: Date:

Checked by: Date:

OBSERVATION CHECK LIST

BY: Tolesa F.
March 25, 2024
 9

Trainee’s name:
Teacher’s name:
Module Title: Setting up and operate a Computerized Accounting System
Learning Outcome: Implement an Integrated Accounting System
Date of assessment: 2016 E.C
Venue of assessment: Akaki Poly Technic
Instructions for Observation
Given the necessary materials, tools and equipment, implement an integrated Accounting System of a
specific organization or company within 3 hours
Materials and equipment
Computer / Desktop, White board, White board marker & Duster, Lab and materials required for the
operation
During the Observation of skills, did the trainee: Yes No N/A

Analyzed the system plan requirements and the processes   

Created chart of account, general ledger and subsidiary in to   

system
Ensured integrated accounting system   
Regularly back-ups data of the system   
Appropriated technics used to solve any operational   
problems
The trainee’s demonstration was: Satisfactory  Not Satisfactory 

DEMONSTRATION CHECK LIST

BY: Tolesa F.
March 25, 2024
 10

Trainee’s name:
Teacher’s name:
Module Title: Setting up and operate a Computerized Accounting System
Learning Outcome: Implement an Integrated Accounting System
Date of assessment: 2016 E.C
Venue of assessment: Akaki Poly Technic
Instructions for Demonstration
Given the necessary materials, tools and equipment, implement an integrated Accounting System of a
specific organization or company within 3 hours
Materials and equipment
Computer / Desktop, White board, White board marker & Duster, Lab and materials required for the
operation
During the demonstration of skills, did the trainee: Yes No N/A

Analyzed the system plan requirements and the processes   

Developed the model system by the implementation   

Installed Accounting Application software   

  
Created chart of account, general ledger and subsidiary in
to system
Ensured integrated accounting system   
Set up (created) customers, suppliers and inventory items   
in the system
Back-ups and restore data of the system regularly   
Appropriated technics used to solve any operational   
problems
The trainee’s demonstration was: Satisfactory  Not Satisfactory 

ORAL QUESTIONING CHECK LIST

BY: Tolesa F.
March 25, 2024
 11

Trainee’s name:
Teacher’s name:
Module Title: Setting up and operate a Computerized Accounting System
Learning Outcome: Implement an Integrated Accounting System
Date of assessment: 2016
Venue of assessment: Akaki Poly Technic
Instructions for Oral Questioning
Given the necessary materials, tools and equipment, implement an integrated Accounting System of a
specific organization or company within 2:30 hours

Materials and equipment

Printer, Paper, Furniture (table and chair), Pen , pencil
During the examined of knowledge, did the trainee: Yes No N/A

Installed Accounting Application software   

  
Created chart of account, general ledger and subsidiary
in to system
Checked integrated accounting system   
Set up (created) customers, suppliers and inventory   
items in the system
Back-ups and restore data of the system regularly   
Appropriated technics used to solve any operational   
problems
The trainee’s written test was: Satisfactory  Not Satisfactory 

BY: Tolesa F.
March 25, 2024