Principles of Accounting Information Systems Design

A. Design of Accounting Reports

1. Evaluate performance
2. Pinpoint operating problems, deficiences and opportunities
3. Evaluate alternartive courses of action in quantitative terms with
recommendations

B. Design of Procedures
1. Be consistent with company policies.
2. Consider the company's organizational structure.
3. Accomplish their objective efficiently and effectively.
4. Provide for necessary management.
5. Interrelated with other company procedures.
6. Consider capabilities and limitations of personnel.

C. Classification and Coding of Accounts

1. Report requirements.
2. Company's organizational set-up.
3. Requirement to establish accountability and control.
4. Use of equipment and devices.

D. Design of Ledgers
1. Be adequate to provide the information needed for various reports.
2. Contain only one kind of data.
3. Be arranged to facilitate economical and speedy preparation of report.

4. Clearly indicate and describe the data contained in it.

5. Be useful in establishing accountability and control.
6. Conform to any laws and regulations affecting the company.

E. Design of Journal

1. Special journals should be used to record repititive transactions of the same class
or nature.
2. General journal is used to record those transactions that cannot be entered in the
special journal.
3. Specific column headings fir most frequently used account should be written in
advance.
4. "Sundry accounts" column should be provided for by classifying and posting
accounts not provided for by special columns.
5. Economical and efficient recording of transactions should be facilitated.

F. Design of Forms
1. Be properly identified.
2. Be serially numbered.
3. Carry necessary instructions.
4. Logically arrange data.
5. Facilitate the recordinh of data.
6. Provide for all necessary signatures together with dates, title and other data.
7. Consider internal control requirements.